NextPoint Financial Inc. (OTCMKTS:NACQF) (TSE:NPF.U) Stock Gains Momentum: Here is Why

The tax preparation industry is now quite a prominent one and at this point in time, Liberty Tax, subsidiary of NextPoint Financial Inc. (OTCMKTS:NACQF) (TSE:NPF.U) is one of the more important players in that sector. The company’s stock was in focus among investors yesterday and ended the day with gains of as much as 5%. It is quite likely that the stock is going to be in focus yet again today.

Market Stats

On Tuesday, NACQF stock increased 5% to $3.99 with more than 1.1k shares, compared to its average volume of 865 shares. The stock has moved within a range of $3.9100 – 3.9900 after opening trading at $3.91.

Latest News

The company announced yesterday that it had been successful in arriving at an agreement with ATAX in relation to a lawsuit that had been filed at the United States District Court for the Eastern District of Virginia in February last year.

It was a significant development for Liberty Tax considering the fact that in the lawsuit, claims had been made for trademark infringement, unfair competition, false designation of origin and tortious interference among others. Now that the lawsuit has been settled, it seems to have brought about a degree of optimism among investors with regards to the Liberty Tax.

At this point in time, it may be a good idea from investors to consider adding the stock to their watch lists and keep an eye on further developments.

Key Quote

“We are satisfied to have successfully defended our brand and Franchisee base by resolving this matter,” stated Liberty Tax’s Chief Executive Officer Brent Turner. “As has always been its practice, Liberty Tax will not hesitate to take legal action when necessary to defend its contractual rights and business interests, particularly against competitors, who utilize unfair business practices to their advantage to try and damage the goodwill and reputation of the Liberty Tax franchise system” he added.