MOMO's gap up was due to a buyout offer at $18.90 from the CEO. The company formed a special committee of two independent directors to consider the offer.
Such an offer is a bullish event for the company even if the offer is rejected. The risk is that the price heads lower should the offer be rejected, though due to the bullishness of this news, a resurgence in demand for the stock could occur and push the price higher.
Buyable Gap Up - MOMO update 6/23/15
|Published:||23 Jun 2015 17:10 ET|
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