There were many stocks that recorded gains on Monday, but there were very few stocks that could match the gains made by Corporate Universe (OTCMKTS:COUV).
Corporate Universe (OTCMKTS:COUV) has performed impressively this month so far and soared by as much as 550%. But on Tuesday, the merry run slowed as the stock pulled back 21% and closed at $0.25.
While the latest rally in the Corporate Universe stock is highly impressive, it should be noted that there was no material news regarding the company’s business that could have led to such a move. Hence, it might be necessary to an important event that took place earlier this year.
Back on October 16, the company announced that it submitted a petition at a Federal Court with regards to the cancellation of 89 million shares of its common stock. A decision is yet to be made in this matter but it is a significant move from Corporate Universe.
The cancellation of such a number of shares indicates that the common stock is going to become rarer in theory and that could be one of the reasons behind the rally in the stock.
In this regard, it is also necessary for investors to keep in mind that the company had previously acquired as many as 106 million shares and then retired those to the treasure.
We will bring more updates on COUV as they become available.
Disclaimer: We hold no position in COUV Stock.