Wild Ride: Net Element Rallies 70% After Jon Najarian Joins Its Board

Net Element International Inc NETE stock jumped 71.6 percent Thursday after the company announced Najarian Family co-founder and CNBC analyst Jon Najarian joined the company’s board of directors. This week’s volatile trading is the latest move in what has been a wild ride for Net Element investors in recent months.

Net Element Roller Coaster

With roughly $10 million added to Net Element’s market cap in 24 hours, investors seem to be betting that Najarian’s name and reputation can help the company with its new high-tech focus.

Net Element, which is a financial technology company, announced back in December it was partnering with Bunker Capital and launching a new unit focused exclusively on blockchain technology. The announcement sent the stock soaring more than 500 percent from around $5 per share to as high as $33.51. The move was promptly met with selling pressure, however, and within three days the stock was back below $15.

The stock continued to drift lower through the first couple of months of 2018, reaching as low as $5.22 this week when the company announced it had terminated its previously announced plans for a partnership with Bunker Capital.

The Najarian Bounce

The stock traded back above $10 on Thursday following the Najarian announcement.

“I am excited for what the future holds for Net Element, and am eager to support and advise on the Company’s current strategy,” Najarian said in a statement.

Certainly Najarian’s presence boosts Net Element’s visibility and credibility, but Najarian has relatively limited experience in blockchain technology. Najarian’s Investitute recently launched an educational course for investors called “Crypto Basics.” Najarian also hosts the International ICO Channel, which focuses exclusively on cryptocurrency ICO news.

Low Float Volatility

Much of this week’s big move in Net Element may be due to its share structure as well. Several low float stocks have endured extreme volatility this week. Net Element has a minuscule 1.8 million-share float and a relatively high 17.4 short percent of float, according to Yahoo Finance. At those levels, it wouldn’t be surprising for a large news item to trigger a short-term short squeeze.

The addition of Najarian was announced at 8:30 a.m. Thursday, and the fact that the stock didn’t start skyrocketing until Thursday afternoon is even more evidence that the move may be more technical than fundamental in nature.

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Posted In: NewsTechnicalsManagementTop StoriesMoversMediaTrading IdeasBlockchainBunker CapitalJon NajarianLow Float
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