After having endured a difficult period due to short-seller action, OSN stock has proven to be one of the biggest winners this morning. Ossen Innovation Co Ltd (NASDAQ:OSN) announced its preliminary financial results and that was cheered by investors as the stock climbed by as much as 85% in premarket trading.
However, the optimism brought on by the financial results has driven out the short-sellers, and the stock is one of the biggest gainers in the market today as of now. The company published a press release in which it detailed its performance.
Earnings Details
During the first half of the year, Ossen Innovations generated revenues to the tune of $65.1 million, which reflected a 7.1% drop from the $70 million it had generated in the first half of 2018. The decline in revenues was apparently due to the drop in rare earth quote products. However, the company went on to state the drop was somewhat compensated by a rise in plan surface and zinc-coated products, among others. On the other hand, gross profits rose by 2% in the first half of 2019, year-on-year. In addition to that, selling expenses experienced a steep 25.6% year-on-year decline and hit $130,926.
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At the time of writing, OSN stock is up 95% at $6.44 after hitting a new 52-week high of $7 earlier in the session.
The company’s net income for the period went up by as much as 19.4%, and that is something that has been proven to be a particularly timely boost amidst all the short-seller action. In the press release, the Chairman of the company, Dr. Liang Tang, stated, “Because of the lowest Chinese GDP growth rate in recent years during the first half of 2019, our top line decreased slightly. Nonetheless, net income increased by 18.7% as we focused on higher-margin products.”
The rise in the stock has come as a bitter shock for the short-sellers, but investors who stuck with OSN stock during these times now stand to reap rich dividends.
After today’s jump, OSN stock is up an impressive 435% so far in 2019.
Featured image: DepositPhotos © poznyakov
