In a development so far out of left field, Shengfeng Development (NASDAQ:SFWL) blasted up over 95% at the time of writing. It was a development that left many scratching their heads and downright frantic to find some kind of explanation for the surge.
Shengfeng Development focuses on logistics services, which are commonly in demand, but not so much as to justify a near-doubling of share prices in a day’s trading. That kind of price action is commonly reserved for some kind of major news event. Like Shengfeng discovering workable cold fusion, perhaps. That did not happen, however, nor were there any significant news or SEC filings at any point today or yesterday.
In fact, Shengfeng Development hasn’t even been a publicly-held stock all that long, to begin with. It recently announced its IPO back on March 31, noting that it was planning to offer 2.4 million shares of Class A stock at $4 per share. A good starting point, nearly $10 million worth of stock if all went as planned.
Since Shengfeng Development stock has only existed for about the last six weeks, we can look readily at that entire block of time in trading. We can also see there was a nice rise after the IPO before losing most of that gain over about a two-week period after it arrived. Then, the stock plateaus back around its $4 IPO price before, inexplicably, blasting up into the stratosphere and roughly doubling its value.
