How One Contract Win Sent This Stock Up Over 100 Percent

by Jayson Derrick

August 13, 2015 11:34 AM | 2 min read | Make a Comment

Shares of

One Horizon Group Inc

OHGI

soared higher by more than 125 percent during Thursday's pre-market session after the company

announced an agreement in which it will become the exclusive supplier of Voice over IP services to Keyldea Information Technology, a manufacturer of satellite equipment in China. One Horizon is a penny stock with a market cap under $70 million. The company is based in Ireland and its business "optimizes communications over the Internet through its wholly owned subsidiary, Horizon Globex GmbH, Zug, which develops and markets one of the world's most bandwidth-efficient mobile VoIP platforms smartphones." Naturally, investors and traders have come to expect volatility when a little known company of its size reports a contract win – especially when the issue reacted almost identically in the past. Shares of One Horizon surged more than 110 percent on May 13 after the company said that its Chinese retail VoIP service ("Aishuo") exceeded more than three million downloads, exceeding its two-month target. The penny stock traded at $2.63 on May 13 following the announcement. The company reported its first quarter results on May 20 in which it lost $0.03 per share on revenue of $745,000 (no consensus estimates) and shares retreated to $1.52 by May 26 before nearly quadrupling in value within one month. The stock surged nearly 160 percent after the company announced on May 28 that its Aishuo App will support China UnionPay, Alipay and Wechat. The issue saw its daily volume skyrocket to over 15 million shares compared to a 20-day average of just one million. However, after hitting a 52-week high of $5.84 in early June the stock sold off and dipped below the $1.52 per share mark before Thursday's announcement. The pattern of the stock surging only to give back its gains proved to repeat itself yet again on Thursday. Shares traded opened for trading at $2.26 and touched an intra-day high of $2.40 before the selloff picked up momentum. By 10:15AM the stock was trading at $1.71 and higher by only 23.91 percent on the day.

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Posted In: News Aishuo Keldea Information Technology One Horizon Group

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