Shares of Zoetic International PLC (LON: ZOE) surged 13.8% today despite the lack of major announcements from the company as investors kept the company’s share price flying high since signing a major deal to distribute its products in the United States.
The industrial hemp and CBD products company has seen its shares rise 78% from a closing price of 43.6p on November 23 to 78p today following the November 24th announcement that will see its products sold in over 88,000 US retail stores.
Zoetic’s shares kept rallying as investors recognise the growing demand for its Chill branded CBD products as people spend more time at home due to the coronavirus lockdown measures that have been reinstated to stop the second wave of infections.
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The company is yet to release a trading update to reveal the impact of the second wave of lockdowns its sales figures. Still, many expect it to report outstanding figures given its strong presence in the US markets where there is a huge demand for CBD products.
Investors appear convinced that Zoetic shares will keep rising over the medium-term. Still, I would not open a new position in the company at current prices given the parabolic nature of its latest rally.
We are bound to see a pullback in the company’s share price since steep sell-offs usually follow parabolic stock rallies given the right trigger, I would look to buy once the pullback tapers off.*
*This is not investment advice.
Zoetic share price
Zoetic shares today surged 13.8% to trade at 78p having rallied from Monday’s closing price of 68.4p.