The shares of Ever-Glory International (NASDAQ:EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider, boomed with its announcement of the stock buy back program. Bearing the sweetest fruits to its investors, the investors of the company have fetched remarkable gains to an extent that it has become a “must buy” on the list of several new investors.
Being the hyper active stock for the day and the trading volume surpassing the average daily volume by a huge difference, the company announced a share repurchase program of $5 million. Currently, more than 125 million shares have traded hands, relative to an average daily volume of around a half million shares.
Given the fact that any substantial share repurchase program announcement is bullish news for a given company, there are other factors that are driving the shares of the company high. Being an apparel retailer, an industry which has suffered by the outburst of lockdown globally due to the pandemic, there’s a strong pandemic reopening thesis with this company. Secondly, the regulatory concerns related to how the Chinese Communist Party (CCP) aims to regulate its corporations has not exempted retailers like Ever-Glory.