Shineco Inc (NASDAQ:TYHT)
After three attempts in the last six weeks to close above $3.50, Shineco Inc (NASDAQ:TYHT) shares closed up over 30%, on heavy volume, and closed at $3.64. Investors flocked to the China-based producer foe heal and well-being products after the company announced its subsidiary, Tianjin Tajit E-Commerce Ltd., obtained contractual rights to distribute branded products of Daiso Industries Co. Ltd, a large franchise of 100-yen shops founded in Japan, via JD.com – the largest e-commerce company and retailer in China. Daiso Industries Co., Ltd. operates home center chains throughout the world.
Shineco Inc (NASDAQ:TYHT) is now authorized to distribute Daiso’s branded products and use its brand names in connection with Tianjin Tajit E-Commerce Ltd in China. The allows Shineco to access JD’s massive online customer base for business development in China. JD will leverage Shineco’s business expertise, and Shineco will serve as JD’s authorized vendor for providing its customers with access to a wide range of products of Daiso.
Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco Inc (NASDAQ:TYHT), stated, “We are excited about teaming up with China’s e-commerce giant JD and Japan’s retail giant Daiso, and the potential market that new relationship can bring to our business. JD’s vast online retail channel will enable us to distribute Daiso’s products in a more efficient and economical manner to meet the growing consumer demand in China, which further drives the Company’s fast expansion in e-commerce, enhances the influence of the Company and builds up the brand awareness of Shineco.”
TYHT Stock Analysis
In mid-August, Shineco Inc (NASDAQ:TYHT) stock established a new 52-week low of $1.72. However, two weeks ago the stock began a strong uptrend and has closed higher every day since. Friday’s price action was remarkable. TYHT stock had closed on Thursday at $2.78, then gapped up on the news to open Friday’s session at $2.86 before hitting an inter-day high of $4.38. That upward move was accompanied by strong volumes that were over 64 times the listed 30-day, daily average.
Earnings per share, sales, and the number of outstanding shares have all been largely consistent over the past five years. One thing that does stand out is the fact that the stock has a float of only 13.87 million shares. That low float level could serve as a catalyst for any future moves, up or down, as traders seek to capitalize on the expanding Asian healthcare markets.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.