Stocks that make massive gains over a reasonable period of time cannot hope to maintain them forever. At some point, a correction is bound to come and that can come about for a number of reasons.
Alpine 4 Technologies Ltd (OTCMKTS:ALPP) has emerged as one of the biggest gainers over the course of the past months.
Recent Developments
However, in recent days, Alpine 4 Technologies Ltd (OTCMKTS:ALPP) has corrected sharply and went down from its all time high by as much as 25%.
While that may be true, investors should not forget that the stock is still up by a whopping 780% since November 2020. Hence, the latest correction is not particularly alarming at this point.
It might be more useful for investors to take a closer look at the recent developments with regards to Alpine 4. The company, which is involved in operating small market business, made a major announcement last week with regards to its subsidiary company Morris Sheet Metal. It was announced that Morris Sheet was awarded new building projects contract worth as much as $2.9 million.
It is a significant development for Morris Sheet Metal and it remains to be seen how the market reacts to the news over the course of the coming weeks.
In this regard, it is also necessary for investors to note that plenty of projects had been suspended due to the coronavirus pandemic. However, with the easing of the situation, a lot of projects are now ready to be revived and it is likely the Morris Sheet Metal’s services are going to be sought extensively by a variety of clients.
If that actually happens then it is expected to be a massive positive for the Alpine 4 stock. For instance, the company’s subsidiaries in Indiana are now seeing a significant flow of revenues due to the revival of projects that had earlier been canned.
Disclaimer: We hold no shares of ALPP stock.