AMTD Digital (NYSE:HKD) took all the headlines on Tuesday as the stock price soared to $2,555.30. However, there was another China-based stock that also made a significant move. Ecmoho (NASDAQ:MOHO) started the day at $0.12 and hit an intraday high of $0.39. The move continued yesterday as the price reached a recent high of $0.49. With the stock up over 300%, is there a HKD-type move in the works?

Ecmoho

Ecmoho was founded in 2011 and headquartered in Shanghai. The company is a comprehensive health service provider to the health and wellness market. They focuses on providing brands with smart retail, global marketing, customer service and technical warehousing. In 2014, the company became a first-tier player in China’s cross-border healthcare e-commerce business, providing one-stop cross-border services for many international brands.The company was publicly listed in 2019.

Small Caps

MOHO has a market cap of just $14.15M. The HKD IPO raised $124.8 million and debuted in mid-July for $7.80. So, Ecmoho is a much smaller company. However, the two have a similar size float. When the float is limited, relatively small amounts of buying and selling can have an exaggerated effect on the price.

Many small cap names have seen tremendous moves over the last few weeks. Just today, NVIV is up 170%. The market seems right for parabolic moves at the moment.

Yesterday, Ecmoho saw 91 million shares change hands, a mere 26x the average volume.

More to come

Retail speculators have taken a fancy to this company. This was also the case for HKD. There was no specific news that took AMTD Digital to a valuation of $400B. For us, we think it unlikely that MOHO will see the same 14,000% rise in price. But that does not mean that this move cannot extend several dollars.

The current share price is ≈$0.39. The current years high for the price was $0.59 and 2021 saw the price trade above $3. These prices do not seem like unreasonable targets if a retail frenzy continues in MOHO.

Please read our full disclaimers regarding the information published. The above is intended for informative purposes only and should not be taken as investment advice. Trading on leverage can result in losses larger than your initial deposit.

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