Is MingZhu Logistics Holdings (YGMZ) Stock All Set To Jump This Week?

A look into the premarket action can often provide an indication regarding the direction of the market for the rest of the day and this morning, it might be a good idea to look into the MingZhu Logistics Holdings Limited (NASDAQ:YGMZ) stock.

The MingZhu Logistics stock has managed to soar by as much as 9% in premarket trading at the time of writing and that has possibly been triggered by a key announcement from the company yesterday. The company, which provides high class transportation and logistical solutions, announced yesterday that it signed a memorandum of understanding of a non-binding nature by way of which it seeks to acquire a controlling stake in Zhejiang CheYi Network Technology Co Ltd.

Zhejiang CheYi Network Technology is a cab hailing and driver management firm. The company had been established back in 2015 as an all service automobile services platform and currently it boasts of an business platform consisting of as many as 6000 vehicles and driver. It is a major development for the company since it is going to offer the customers of MingZhu Logistics with more enhancements. More importantly, it has also been suggested that the acquisition fits into the larger acquisition strategy of MingZhu Logistics.

Market Reaction:

On Tuesday, YGMZ stock jumped 3% at $4.70 with more than 3.60 million shares, compared to its average volume of 466k shares. The stock had moved within a range of $ 4.5500 – 4.7000 after opening the trade at $4.55. Over the past 52-week, the stock has been trading within a range of $3.6590 – 58.0000. The stock is up another 8.72% to $5.11 in the pre-market session.