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ComSovereign (COMS) Stock Soared 84% Amid Acquisition Calls

Simon Mugo trader
Updated 18 Oct 2022

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Key points:

  • COMSovereign stock soared 83.7% as acquisition calls increased.
  • Many are calling for the company to be acquired by Elon Musk.
  • However, the firm has yet to receive an offer from prospective buyers.

The COMSovereign Holding Corp (NASDAQ: COMS) stock price soared 83.7% as calls for the company to be acquired by Elon Musk increased on social media. Many are calling for the firm to be acquired, given the recent changes it has been undergoing.

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The company recently let go of its long-serving Chairman and CEO, Daniel Hodges, on September 1, 2022, and the co-founder and President, John Howell, on the same date due to internal changes.

The company is still considering multiple CEO candidates and has an interim CEO, David Knight. David was an adviser to the company for a few months before he was appointed interim CEO until a new substantive CEO was found.

Also read: Best Undervalued Stocks To Watch In 2022.

Despite the boardroom upheavals., COMSovereign recently received the required certifications from Mexico’s Federal Telecommunications Institute for its Fastback AnyLOSa IBR 1300, which can now be sold to tier-one wireless carriers and private network operators in the country.

The entire certification was granted after extensive testing and evaluation of the technology by the country’s regulator.

COMSovereign had received a letter from the Nasdaq warning it for failing to submit its Quarterly Report on Form 10-Q for the three months ended June 30, 2022, on time. This was one of the reasons behind the ouster of its top managers in September.

The company is now at significant risk of being delisted from the Nasdaq since its share price is also trading below the Nasdaq minimum share price of $1.

There was no apparent reason behind today’s rally except that retail traders had taken note of the company and were buying its shares in the hopes that it would be acquired by some deep-pocketed person such as Elon Musk or another business.

So, would I buy COMs stock? The short answer is no. the company faces an uncertain future, and I wouldn’t risk my money on it.

*This is not investment advice.

The COMSovereign (COMS) stock price.

ComSovereign (COMS) stock price 18-10-2022
Source: Tradingveiw

ComSovereign stock price soared 83.7% to trade at $0.0812, rising from Monday’s closing price of $0.0442.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading