The only reason to trade penny stocks is for the explosive moves they can make. If a penny stock doesn’t have triple-digit or 10-bagger potential, there’s no reason to really be owning them. We at Insider Financial understand this and we spend our time hunting for penny stocks that can make big moves. SPO Global Inc (OTCMKTS:SPOM) is one such stock has taken the market by storm this year.
SPO Global has bounced back to life after coming under immense short-selling pressure, at the peak of the COVID-19 triggered market correction. SPO Global has been a big winner for investors so far in 2020. Beginning the year at $0.0143, a series of big gains have driven the stock to a $0.68 high, representing a return of 4,55% in a space of less than two months. An acquisition that SPO Global closed recently has helped put the stock on the radar of many more investors.
SPO Global Price Analysis
SPO Global has rewarded the bulls with dips presenting buying opportunities from where the stock climbed higher. A rally to the $0.34 level has opened the door for bulls to push the stock to 2020 highs of $0.68, given the strength of the upward momentum.
Any pullbacks from current highs will have to contend with support at the $0.28 level, below which the stock could drop to $0.20 level, the next substantial support level. A sell-off followed by a close below the $0.20 level could fuel a sell-off back to this year’s lows.
In our view, SPO Global remains well-positioned to continue powering higher.
What Does SPO Global Do?
SPO Global bills itself as a diversified holding company focused on the acquisition of interests in a range of companies. In the recent past, the company has expanded its footprint into the biopharmaceutical sector. Likewise, the company is now focused on the development of genetic coating stents as well as HBV hepatitis B virus vaccines and monoclonal antibodies for male infertility.
IHT Medical Services Agreement
OTCMKTS:SPOM tumbled on huge volume in the wake of the stock market crashing in March, at the peak of the CVID-19 pandemic. A rise form the death came at the backdrop of the diversified holding company announcing a strategic partnership between its subsidiary Gerpang Healthcare Group and International Health Technologies (IHT).
Under the terms of the agreement, Gerpang Biotechnology is to apply for the certification of IHT devices on behalf of International Health Technologies. In addition, it is to become the exclusive importer if IHT devices from China.
Likewise, GP is to collaborate with community hospitals as well as outpatient clinics to promote the layout of IHT devices such as IHT Bioscan that can detect nine systems of the human body.
In the recent past, SPO Global has strengthened its footprint in the healthcare space with the signing of a partnership with QingDao Fuyutang Health Development Franchisees. As part of the partnership, the two are to set up over 100 clinics in multiple cities.
QingDao Fuyutang Health Partnership
Gerpang Healthcare group is to co-operate with Fuyutang franchises by offering technical support as part of an effort of creating standardized medical service management model.
“Through the integration of resources and complementary advantages, Gerpang and Fuyutang Health Franchise will definitely create a unique professional brand in this field. Based on the tenet of “Inheriting the culture of Chinese medicine and integrating the advantages of Chinese and Western medicine,” SPO Global in a statement.
By focusing on Chinese medicine, SPO Global hopes to address a vast market and, in the process, generate significant value.
SPO Global has moved to diversify its holdings, having completed a merger with Gerpang Healthcare Group and inking a strategic partnership with QingDao franchises. Gerpang Joins SPO Global, with a vast portfolio of international and national patents that should be a key driver of the bottom line in the years to come. An annual turnover of over RMB 1 billion will also be a big addition to SPO Global books.
Gerpang and Fuyutang Franchises are to cooperate in medical terminal services, an area where SPO Global hopes to generate significant value going forward. That said, SPO Global is poised for an exciting year on the medical services front, an area that is in the spotlight amidst the COVID 19 pandemic.
Likewise, the stock looks set to continue registering higher highs as investors take note of improving fundamentals in the healthcare space.
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Disclosure: We have no position in OTCMKTS:SPOM and have not been compensated for this article.