Happiness Development Group Limited (NASDAQ:HAPP) Stock Signals Weak Opening: Here is Why
Happiness Development Group Limited (NASDAQ:HAPP) stock is down 10% in premarket after the china based dietary supplements, and nutraceutical and automobile sales company announced that its automobile sales unit, Taochejun’s subsidiary, had signed a sales deal with Shanghai Automobiles Industry Corporation’s wholly-owned subsidiary Shanghai Automobile Trading CO. Ltd to acquired 1,300 SAIC MG brand vehicles at a discount.
Market Stats
On Monday, HAPP stock soared 7.44% at $0.83 with more than 13.70 million shares, compared to its average volume of 327K shares. The stock has moved within a range of $0.7211 – 1.1400 after opening trading at $0.7826. However, the stock is down 7% in the pre-market session.
Happiness Development Reached Cooperation with Shanghai Automobile Trading Co., Ltd
According to the terms of the agreement, Happiness Automobile Services (nanping) Co. Taochejun’s subsidiary will buy 130 “MG HS” vehicles for around $16.3 million. In addition, the vehicles are sold at a 37% discount relative to the official price.
CEO of HAPP Xuezhu Wnag said they are delighted to reach an agreement with Shanghai Automobile Trading Co. Ltd. Wang said that Taochejun has signed an agreement with several auto trading groups in the last few months accumulated considerable experience. Notably, then collaboration with SAIC Motor’s subsidiary has demonstrated that manufacturers are acknowledging the company’s distribution ability. So, in the coming weeks, HAPP is worth watching.
Key Quote
Xuezhu Wang, CEO of the Company, commented, “We are very pleased to reach cooperation with Shanghai Automobile Trading Co., Ltd. In the past few months, Taochejun has reached cooperation with many auto trading groups and accumulated valuable experience. The cooperation with SAIC Motor’s subsidiary has shown that our team’s distribution ability has been recognized by major auto manufacturers. In the future, we will continue our efforts to further expand our distribution network and strive to reach more cooperation with more large manufacturers and distributors.”
Traders Corner
HAPP stock is trading below the 20-Day and 50-Day Moving averages of $0.88 and $0.93 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.49. The stock is down 6% in the past month.
