Stocks can often go on strong rallies despite there being no news about the related companies and it might often be a good move from investors to perhaps take a closer look at the company.
Yesterday, it was the China SXT Pharmaceuticals Inc (NASDAQ:SXTC) stock which went on such a run despite there being no news and ended the day with gains of as much as 12%. In this situation, it should be noted that there has been no news about the company for many months and that last piece of news to have emerged about the pharmaceutical company was back in February.
While it is true that the rally might be entirely speculative in nature, it might be worthwhile to take a look at the announcement from back in February. At the time, the company announced that it signed a non-binding letter of intent with the company Jiangsu Renji Pharmaceutical Chain Co Ltd.
As per the terms of the letter of intent, China SXT was going to pick up a 70% stake in Renji in a deal that was going to be concluded in both stock and cash. At this point, it might be a good move to keep an eye out for any fresh news about China SXT.