If you are looking into micro cap stocks this morning then it might be a good time to keep an eye on the Cuba Beverage Co (OTCMKTS:CUBV) stock. This past Friday the stock emerged as one of the major micro cap gainers and ended the day with gains of as much as 105% amidst considerable interest.
Market Action:
On Friday, CUBV stock jumped 104.96% at $0.0248 with more than 97.52 million shares, compared to its average volume of 20.94 million shares. The stock has moved within a range of $0.0110 – 0.0249 after opening the trade at $0.0124.
Key Trigger
The rally in the stock was triggered by an announcement from the company on Twitter with regards to the fact that a merger was a possibility again. The announcement resulted in considerable buzz among investors and most probably led to the remarkable rally in the stock on Friday.
Cuba Beverage noted that unless something unforeseen takes place, the merger agreement in question could be with the attorneys this week. The merger that is being negotiated is with a lithium production company that is privately owned.
It goes without saying that it could be a game changing business combination for Cuba Beverage and hence, the optimism among investors is perhaps understandable. The merger in question is going to be a reverse merger and such moves can often prove to be explosive for stocks as well. This might be one to keep an eye on.
Technical Data
CUBV stock is trading above the 20-Day and 50-Day Moving averages of $0.0150 and $0.0144 respectively. Moreover, the stock is trading above 200-Day moving average of $0.0064. The stock is up 65% in the past month.
