Shineco just announced its plans to enter the cannabis market
The shares of Shineco Inc (NASDAQ:TYHT) are soaring after the Chinese herbal medicine producer released its plan to expand into the cannabis market. The company established Beijing Tenjove Newhemp Biotechnology Co. Ltd. (TNB) on Mar. 13 to implement the plan, which includes industrial hemp and CBD processing. As a result, the penny stock has more than doubled in early trading, up 71% at $1.15 at last check.
TYHT stock has been in steady decline since it's May 18 spike at $2.47. The equity bottomed out at an all-time-low of $0.43 on Feb. 13. The shares have since attempted a rebound but were quickly capped by the 160-day moving average. Today, however, Shineco stock is at an area not seen since July. What's more, it just popped over its elusive 320-day trendline for the first time ever.
Prior to today, short sellers were already beginning to hit the exits. The number of shares sold short dropped 8.6% in the last reporting period. The 205,506 shares currently sold short represents only 1.25% of TYHT's available float, or a little under two days' worth of buying power at the security's average daily trading volume.