In a surprising and bizarre twist — which is certainly saying something during the meme stock era — Nok Airlines (OTCMKTS:NOKPF) stock is seeing an unprecedented upward boost in trading today. The stock suffered briefly in the last two weeks as it failed to file important documents with its home exchange, but the stock is soaring today as it continues to trade. Investors are also expecting to see a turnaround plan very soon.
Nok Airlines is a popular airline company based in Thailand. The company has been falling on hard times in the last few years, posting significant losses and facing the potential of bankruptcy.
Last year, the company hired prominent Thai business magnate Wutthiphum Jurangkool as CEO to head its rehabilitation. And things were certainly looking up for Nok as the turnaround committee started to do its work. But, unfortunately, the airline industry was decimated by the Covid-19 pandemic, putting Nok back at square one.
The company filed for bankruptcy in June 2020, and sought assistance in elevating itself back out.
Incoming Rehabilitation Plan Lifting NOKPF Stock
The company was tasked with submitting a rehabilitation plan with the Thai government, which it did in May. However, the company failed to submit some important financial reports, which were due at the beginning of June. The Stock Exchange of Thailand is sparing the company from the penalty of delisting. Luckily for NOKPF stock, the mercy shown by the SET is doing numbers for its price today.
With a rehab plan ready to go, and a highly regarded CEO at its helm, NOKPF is priming itself to shoot out of bankruptcy. The reopening of the airline industry is a crucial first step, and tourism in the country will resume as early as next month.
These factors are reinvigorating investors. The stock is seeing huge trading volume today, with over 36 million NOKPF shares trading hands. This is a huge difference from its 1.1 million daily average. The massively increasing volume is making the value of NOKPF pop. The stock is up nearly 44% today.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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