ReTo Eco-Solutions (NASDAQ: RETO) stock is down 83% on the day. RETO stock has fallen because, well, there’s no specific news item that we can see. That doesn’t mean that there is no specific reason, just that it’s not generally propagated through the news ecosystem as yet. This is, we would suggest, one of the problems in playing in China based stocks. News of trading performance and so on will be in Chinese, behind the Mainland’s internet force field. That means that news to us in English might arrive rather after more local investors have had time to make their move. We do not say this is the cause and reason here. Only that it’s something to think about.
As to what’s done at ReTo Eco: “ReTo Eco-Solutions, Inc., together with its subsidiaries, manufactures and distributes construction materials primarily in China. Its products include aggregates, bricks, pavers, and tiles. The company’s construction materials are used for water absorption, flood control, and water retention; for gardens, roads, bridges, city squares, retaining walls, and slope construction; for hydraulic ecological projects, such as slope protection and river transformation; and for insulation, decoration, and building walls.” Well, we can imagine what might have triggered this RETO stock price fall. Everyone’s getting ever more nervous about the Chinese construction industry so suppliers to that industry might well be ready for a fall.
ReTo Eco Solutions stock price from Google Finance
Given this absence of any other news from the usual sources we’d assume that this is just nervousness over the entire Chinese property and construction industry. Yes, we know that China Evergrande stock (well, the US stock at least) has just jumped 150%. But Country Garden, as a stock that’s still trading in volume is telling us that industry has significant problems.
We might even think it’s a little unfair for this to afflict ReTo. They have, after all, just returned from problems and did a reverse stock split to regain NASDAQ compliance. But if the entire business sector is plunging around the u-bend then there’s not a great deal that any single company can do about it.
As we say, in the absence of other information we suggest that the ReTo Eco stock price collapse is just a realisation of how bad that Chinese construction industry is looking.