COMSovereign Holding Corp. (NASDAQ: COMS) is a telecom solutions company offering next-gen technological tools to mobile device carriers, network operators, enterprises, and government agencies. Its stock price has been seeing a remarkable surge in the last few days, owing to an announcement made by the management of the company.
COMSovereign Goes After Naked Short Selling
COMSovereign Holding Corp. (COMS) has been seeing a significant surge in price since yesterday, which has seen it double its price from $0.06 to $0.12. The catalyst for this sudden surge comes after the management announced its plans to go after and take legal action against the naked shorting of its stock. This form of short selling, which takes place without actually borrowing the stock too short, is an illegal practice. Thereafter, the market rushed into action with the news, with the COMS price trajectory showing all the signs of a short squeeze.
COMS Undergoing Transformation
The boost in COMS price comes at a critical junction for the stock, just as the company finds itself in the middle of a crucial transition. With a new CEO and President, David Knight, at the helm of the ship, the company is steering direction toward profitability and growth. One immediate initiative undertaken has been a company-wide streamlining attempt to cut down costs and ensure greater value delivery. Moreover, this has been achieved through downsizing and the elimination of redundancies. COMS' Israeli Sky Sapience Drone (SSD) unit was recently sold off for a total of $1.8 million. Another focus has been on strengthening the balance sheet, and in particular, lessening the debt burden on the company.
Conclusion
COMS stock price is going through a technical price surge after management has vowed to go after naked short-sellers. In the short squeeze seen, COMS has appreciated significantly. Moreover, this update comes at a critical point for the company, as it undergoes a radical transformation towards streamlining and value addition.