Nova LifeStyle Inc. (NASDAQ:NVFY) Stock Erases Recent Gains: How to Trade Now?
Nova LifeStyle Inc. (NASDAQ:NVFY) fell 18%, erasing most of the gains posted last week. Recently the company announced that its subsidiary Diamond Sofa successfully demonstrated a new design line during the High Point Market show between June 5 and June 9.
The company’s CEO, Tawny Lam, said that the event had been a special place for the company to showcase its product lines and interact with customers worldwide. In addition, Lam said that the company has been active in its marketing and sales strategy over the pandemic and meeting customers such as El Dorado Furniture, Regency Furniture, Nebraska Furniture Mart, and Sumberland.
The company released its Q1 2021 results in which net sales were up 51% YoY to 3.3 million. Lam said that the company’s strategy coming into 2021 was getting operations back into pre-pandemic levels. In addition, he said that their manufacturing strategy and high margin products helped increase gross profit margin by 41% in Q1 2021. So in the coming months, NVFY is a stock worth keeping an eye on.
Market Reaction:
On Monday, NVFY stock slumped 18.22% at $3.86 with more than 782k shares, compared to its average volume of 375k shares. The stock had moved within a range of $ 3.8500 – 4.5000 after opening the trade at $4.46. Over the past 52-week, the stock has been trading within a range of $1.4500 – 7.4900.
