Stock for IT Tech Packaging, Inc. (NYSEAMERICAN: ITP) has been on a tumultuous ride of volatility yesterday, keeping traders guessing. Following the sharp ups and downs for the day, ITP eventually closed at $0.21, compared to the previous session’s $0.20. The aftermarket hours have carried forth a similar spurt of possible growth, with unrestrained volatility, leading to a 6.54% gain. The penny stock is one defined by its two-way rapid swings, as is evident by its past month movements.
Cause for Divided Views over ITP
The volume of trade, topping 100,000, points out the level of interest that market participants have attached to ITP. The Chinese-based paper product company has recently made the news, which has evidently triggered a market response. The most obvious disruption to ITP presumably comes about as a result of a general Chinese stock crash witnessed in exchanges, across the world. As the Chinese government continues its association with Russia, investors remain at unease and voice concerns. The fear of a possible delisting continues to loom, as companies and countries face backlash for dealing with the sanctioned federation. As a result, ITP saw significant dips in price, as the day continued, only to bounce back in the after-hours. The volatility associated with the movement clearly points out the divided sentiment the market holds in regards to the stock, and its potential prospects.
Business Nature of IT Tech Packaging
One reason why ITP did not face a clear crash, is due to the nature of its business. Being a paper-products company that deals with the Chinese market, its sustainability faces little disruption as a result of tensions in Europe. Moreover, given the nature of China’s economy, consumer-driven industries are unlikely to fail, especially given their support by the government. In December last year, ITP gained approval by the CDA to manufacture single-use face masks, further enhancing sustainability. As these realities continue to set in, unfounded fears stemming from the Russia-Ukraine crisis towards stocks like ITP increasingly dissipate. The stock also proves to be a safe investment option to park funds. This is due to its lack of exposure to supply chain disruptions from Russia-targeted sanctions.
Conclusion
ITP stock has seen unrestrained volatility in both yesterday’s trade session, as well as late into the aftermarket hours. There is a clear indication of divided market sentiment towards the stock, especially given the recent Chinese stock crash. The nature of IT Tech Packaging makes it a relatively safe investment amidst the crisis in Eastern Europe.
