HUMBL Inc (OTCMKTS:HMBL) has seen its stock make remarkable gains over the course of the year so far and the trend continued this week. On Tuesday, the stock was in action as it clocked gains of as much as 8% to take its gains for 2021 to 458%.
While it is true that the stock has managed to clock considerable gains in 2021, it is still at a much lower level than its 52 week high. As a matter of fact, the HUMBL stock is now trading at 50% of its highest level. This sort of situation might often present an opportunity to new investors who might have missed the strong rally over the past few months.
In order to understand the recent fall in the company’s stock price, it is necessary to point out that the HUMBL stock had gone on a remarkable rally earlier this year. Experts believe that the fall in the stock is primarily connected to that strong rally, which was speculative in nature.
In recent weeks, concerns have been expressed by many investors with regards to the speculation in certain stocks despite the high valuations of the stocks in question. The rally in the stock truly started last year when Tesoro, a home renovation retail outfit, merged with HUMBL in a transaction that was akin to a SPAC (special purpose acquisition company) merger.
While it was not technically a SPAC merger, it could be compared to a reverse merger. The two companies merged with Tesoro acting in the capacity of a SPAC and helped in taking HUMBL public. The difference, in this case, was the fact that Tesoro actually had a business of its own unlike SPACs, which don’t have their own business operations. Earlier this month, HUMBL received a boost after it signed a securities purchase agreement with Chile-based Aurea Group Ventures. Aurea agreed to buy as many as 437,500 shares in HUMBL for $1,000,000.
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