SOS Limited (NYSE: SOS) stock was up 26% yesterday. SOS stock continued to rise post market but the effect does seem to be fading now. It is this which gives us an idea. We do not insist that this is correct, nor that we are omniscient upon this matter. We just suggest that this is possibly the way to read this. Yes SOS stock was up yesterday, yes that continued postmarket, but if the effect is now diminishing premarket perhaps that means that yesterday's effect will reverse as we track through today's full market?
As to what SOS does: “SOS Limited provides data mining and analysis services to corporate and individual members in the People's Republic of China. It provides marketing data, technology, and solutions for insurance companies; emergency rescue services; and insurance product and health care information portals. The company operates SOS cloud emergency rescue service software as a service platform that offers basic cloud products, such as medical rescue, auto rescue, financial rescue, and life rescue cards; cooperative cloud systems,” and that does all sound good. Sure, could services and so on, but that's a commodity these days. But being able to differentiate, possibly gain extra margin, by being industry vertical specific? Well, it's a plan at least.
True SOS Limited is down 14% on the past 12 months and more like 50% down off the high of that past year. So maybe it's not all that good a plan.
SOS Limited stock price from NASDAQ
Our point here is that there's no news out there about SOS. There's been no new information from the company, no news releases, no grand write ups in the papers. Just that the price rose yesterday and that that continued into the lower liquidity postmarket session.
The effect is fading off though - as we can see it was higher in that again low liquidity early morning and now does seem to be fading back. Even as it's still up on last close.
We read that - and we emphasise this is not a certainty, just our reading - as being that this is just one of those things. A bit of buying starts a momentum trade and then that fades - as momentum trades always do.
In short, in the absence of any other information, SOS rose just because, there's little more of interest here.
