$Mingteng(MTEN.US) fell -22%, with trading volume surging to 40 times the usual level.
The trigger was a share placement announcement: selling approximately 1.13 million shares to institutional investors at $2 per share, representing a significant discount. The float was already small, so the dilution is real.
This small company, which makes automotive molds, had annual revenue of $11.7 million and is still losing money. It previously surged after halting a $100 million share placement plan, and now it's back to raising capital. The financing flip-flops of small-cap stocks are a re-pricing of their holders each time.
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