Bon Natural Life Retail Buzz Builds As Stock Remains On Track To Extend Buyback Inspired Gains

Shares of bio-ingredient solution provider Bon Natural Life climbed 6.87% to close at $1.71 on Tuesday, following the approval to repurchase up to $1 million of Class A ordinary shares.  

The optimism is likely to carry over into Wednesday’s session as the stock is up over 8% in Wednesday’s early premarket session.

Under the share repurchase program, the company can repurchase its shares occasionally in the open market and is not obligated to purchase any particular number of shares.

Retail buzz around Bon Natural Life stock intensified since the stock buyback announcement, with most expressing positive views. The 24-hour message volume change was a robust 287% by late Tuesday.

One user believed that the stock should be over $5 right now with its low float.

Another user was of the opinion that the stock could close at $2.15 on Wednesday, a 25% premium to Tuesday’s close.

Some also predicted a short-squeeze rally, with a watcher suggesting a sharp spike to $100 to $150 level. According to Koyfin, short interest in Bon Natural Life is at over 46%.

The Xi’an, China-based company snapped a four-session losing streak on Monday after shedding 16% in the previous four sessions.

Last month, Bon Natural Life signed a two-year, $24 million distribution agreement with Shanghai Risesun International Trade, a major supplier of functional ingredients in China. Under the deal, Risesun will sell Bon’s tea pigment-based health products across the Chinese market.

Year-to-date, Bon Natural’s stock has tanked over 96%.

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