China XD Plastic Company Limited (NASDAQ:CXDC) Stock Rockets 49% in a Month: But Why

There has been no news about China XD Plastic Company Limited (NASDAQ:CXDC) for many months but it has not stopped investors from flocking to the stock over the course of the past month. The stock has been in considerable action during the past month and has managed to clock gains of as much as 49%.

While it is true that such a rally can be speculative in nature, it might still be a good idea to take a look at a development from back in May this year. Back on May 27 the company announced that it got a letter from the Listing Qualifications Department of NASDAQ.

In the letter, the company was notified that it was not in compliance with the Nasdaq Listing Rule 5250(c)(1). The company violated that rule when it failed to filed its quarterly financial results on Form 10-Q for the period that ended on March 31, 2021.

In addition to that, it should be noted that China XD Plastic has not yet filed the annual report for the financial year that ended on December 31, 2020 either and that was another breach of the above mentioned rule. However, investors seems to be quite optimistic about the prospects of the company nonetheless.