Why VivoPower International (VVPR) Skyrocketed on Monday?

We recently compiled a list of the 10 Small Firms Kick Off Monday with Strong Gains. In this article, we are going to take a look at where VivoPower International PLC (NASDAQ:VVPR) stands against the other stocks with strong gains.

Wall Street’s main indices kicked off Monday’s trading with a strong finish, ending in the green territory as investors hoped President Donald Trump would dial back on his wide-ranging tariff plans to allow the US to skirt an economic slowdown.

The Nasdaq posted the largest gain, up 2.27 percent, followed by the S&P 500, up 1.76 percent, and the Dow Jones, at 1.42 percent.

Ten companies under the micro- and small-cap sectors mirrored the broader market optimism, registering double- to triple-digit gains at intra-day trading. In this article, let us explore the reasons behind their gains.

To come up with the list, we considered only the stocks with the highest gains in terms of percentage change.

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VivoPower International PLC (NASDAQ:VVPR)

VivoPower International PLC (NASDAQ:VVPR) soared by as high as 238 percent on Monday before investors took early profits to pull the company’s stock price just up by 149.61 percent to end at $3.22 apiece.

Sentiment was largely buoyed by news on the same day that it received a $120-million unsolicited acquisition proposal from a $1-billion revenue energy company based in Abu Dhabi.

“The board members of VivoPower (NASDAQ:VVPR) have acknowledged the receipt of the proposal from Energi and are in the process of reviewing it with its advisors and will provide an update to the market as soon as possible,” the company said.

The news significantly impacted the company’s stock price which has been floating below the $1 minimum bid price requirement of the Nasdaq stock exchange for 28 days in a row.

The Nasdaq issues a notification letter to companies that trade below the minimum bid price requirement for 30 consecutive days. Upon receipt of notification, firms are required to conduct corporate initiatives to boost share prices above the said price, or face a potential delisting.

Overall, VVPR ranks 3rd on our list of  small firms kick off Monday with strong gains. While we acknowledge the potential of VVPR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as VVPR but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.