When a stock makes a notable move on the back of a significant spike in trading volume then it may be a good time for investors to start taking a serious look into it. Yesterday it was the Yuengling’s Ice Cream (OTCMKTS:ARSN) stock that made such a move and ended the day with gains of as much as 6%.
Yuengling’s Ice Cream Signs Letter of Intent for the Acquisition of an Ice Cream Production Facility
In this situation, it is perhaps important for investors to first have a bit of an idea about the company before delving into the news that led to the strong rally. It had been founded as a unit of a brewery in 1920 but in 1935 Yuengling’s Ice Cream was spun off into a separate entity altogether.
Yuenglings Ice Cream was best known for making some of the best gourmet ice-creams in the United States but in 1985 it had ceased operations after no one from the owning family emerged as a successor. However, the company has been revived and yesterday it announced that it had inked a letter of intent in relation to the acquisition of an ice-cream production facility.
The identity of the selling party has not been revealed at this time due to confidentiality issues. The company noted yesterday that further details with regards to the sale are going to be released over the course of the coming weeks.
Yuenglings Ice Cream expects the transaction to be completed at some point in March this year. The President and Chief Executive Officer of Yuengling’s Ice Cream Rob Bohorad spoke about the transaction as well. He stated that although certain details could not be revealed, everyone at the company was excited about the possibility of the acquisition.
He went on to add that at this point, the ice cream production facility available across the country remains limited, and hence, the acquisition is going to allow Yuengling’s Ice Cream in maintaining a steady supply of its products. The rally in the stock yesterday was, hence, not a surprise and it is going to be interesting to see if the stock can manage to add to its gains today. Investors could do well to keep an eye on the volume as well.