Shares in designer and modern lifestyle furniture company Nova Lifestyle Inc (NASDAQ:NVFY) jumped 12.67% to close at $4.18 on Monday.
Shares traded were 1.37 million, almost double the average volume of 635.69K shares.
The company is headquartered in the US but sells its furniture and accessories all over the world. It makes its products in the US, Europe and Asia.
Nova Lifestyle Inc (NASDAQ:NVFY) Q2 results
Nova declared a loss of $0.7 million ($0.03 per share) and net sales of $24 million for the second quarter 2016 ended on June 30, 2016. Net sales were down 17.9% year on year.
The company blamed the disappointing results on price increases imposed by its suppliers and Chinese franchise retail sales that were not immune to broader weakness seen throughout the industry.
Nova Lifestyle Inc (NASDAQ:NVFY) secures $15 million supply agreement
Last week the company announced that it signed a $15 million annual product framework agreement to supply U.S. made mattresses and other products to The Future Biz School, a leading Hong Kong and Malaysia-based professional training institute.
Under the framework, Nova has already received firm orders from Future Biz of the value of $2 million.
Nova Lifestyle Inc (NASDAQ:NVFY) to focus on e-commerce
“Nova LifeStyle has many years of expertise in the e-commerce market,” it said. “The Company plans to pursue and invest in strategic growth opportunities including acquisitions of online platforms of synergistic value. Nova LifeStyle intends to acquire and invest in digital platforms that match suppliers with buyers in both products and services.”
Nova Lifestyle Inc (NASDAQ:NVFY) dumps Chinese subsidiaries
End-September, Nova sold off NOVA BVI and its Chinese subsidiaries to Kuka Design Limited for $8.5 million.
“With the slow-down of the Chinese economy and a significant increase in labor and other costs for manufacturing facilities in China, the Company decided to sell NOVA BVI, allowing the Company to transition to a “light-asset” business model,” the company stated.
Nova Lifestyle Inc (NASDAQ:NVFY) technical picture
The stock broke out from a rounding bottom basin pattern in early September 2016, also penetrating its 200-day moving average around that time. Post break-out the stock zoomed to a high of $5.15, from where it has corrected and is presently locked inside a symmetrical triangle pattern.
The stock can emerge from the pattern in either direction.