Investing in stocks that are gaining momentum is often regarded as a sound investment and more often than not it works out well for investors. Hence, it might be a good idea to look into stocks that are gaining momentum.
One of the stocks to have gathered considerable momentum in recent days is that of Healthier Choices Management (OTCMKTS:HCMC).
The stock has been on fire this month and made significant gains in recent days. One of the major triggers for the rally in the Healthier Choices Management (OTCMKTS:HCMC) came about earlier on in the month.
Back on February 8, the company announced that it managed to raise as much as $5 million by way of equity capital and following the announcement, the Healthier Choices stock rallied impressively.
As per the filing from the company to the Securities and Exchange Commission, Healthier Choices sold as many as 1000 shares from its Series D convertible stock for $5000 apiece.
The shares were sold to institutional investors. On the other hand, the shares can also be converted by the investors at a conversion price of $0.0024. At the time, the conversion price represented a premium of as much as 150% from the closing price of the share on Friday, February 5, 2020.
There was another important factor that added to the momentum gained by the stock in recent weeks.
Investors need to note that in addition to being in the grocery business, Healthier Choices is also engaged in the fast-growing vaping space.
The company had filed a patent infringement lawsuit against tobacco giant Phillip Morris International in November last year.
However, back on January 27, this bit of information was picked up by the Reddit retail investors’ community WallStreetBets. The stock was soon the subject of concerted efforts from the members of the community and that resulted in another significant spike in the Healthier Choices share price.
Disclaimer: We hold no shares in HCMC stock.