Acorn Proves Investors Still Willing to Buy Into Chinese Growth Story

By Chris Lange Updated Jan 13, 3:12PM EST · Published Jan 11, 11:05AM EST

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Acorn Proves Investors Still Willing to Buy Into Chinese Growth Story — © Thinkstock

Acorn International Inc. (NYSE: ATV) led the bulls in Monday’s session following the announcement of a newly authorized share repurchase plan. By the way that this stock is moving, it could be a day trader’s dream.

When the markets opened Monday, the stock was at $6.94, an increase of 73% from Friday’s close. However the climb was just starting.

The company announced that its board of directors has authorized a share repurchase program to repurchase up to $2 million worth of its American depositary shares over the next 12 months.

Prior to this announcement, the company only had a market cap of $16.7 million, which would make the repurchase authorization only 12% of the cap. Yet, traders appear to be pouring into the stock to make something out of it at this point.

For some background: Acorn is a marketing and branding company in China, operating multiple direct sales platforms and a nationwide distribution network. Acorn’s direct sales platforms include outbound telemarketing centers, e-commerce websites and catalogs. Acorn has built a proven track record of developing, promoting and selling proprietary-branded products, as well as products from established third parties.
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Just in the past week (Wednesday), Acorn regained its compliance with the New York Stock Exchange. However there was not a big move from this.

The move that was seen on Monday is proof that despite a weakened economy and currency, investors are still willing to buy into the Chinese growth story.

Over the past 52-weeks (to Friday’s close), this stock has dropped 59.6%, but what is more impressive is that since 2016 began this stock is down over 26%.

Shares of Acorn were last seen trading up over 130% at $9.24, with a consensus analyst price target of $4.00 and a 52-week trading range of $0.60 to $20.85.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.