ITP is the a leading manufacturer and distributor of diversified paper products in North China. On January 12th, 2021, ITP announced a license approval for their new single-use surgical masks.
Since January, the FDA mask approval has still been awaiting and the time for this stock to break resistance is just beginning to reach. However, due to COVID, FDA inspection has delayed and the long-awaited press release for the approval has caused the shortage from February 9th. However, this dip is opportunity for a bullish swing trade.
With a 200 day moving average sitting at 64 cents and a 50 day moving average at 59 cents, this stock is awaiting a press release to break the resistance level. ITP sits as 23.1 million shares float and a 21% short percent of float, this can be an opportunity for a 50% upside.
On March 24th, Mr. Zhenyong, Chairman and Chief Executive Office of the Company commented on the 2020 fourth quarter financial results showing 3.4% decrease in revenue.
“Currently we are in the process to apply for surgical face masks production license which we expect to boost both our sales and margins in the very near future. Thought on-site inspection on our production facilities by the authorities was delayed by the pandemic, we are expecting final review results by local food and drug administration in Hebei province. We anticipate to obtain the license once the relevant review works are finished.”
With the CEO confident in revenue increase from FDA approval, and the shortage of ITP opening an opportunity for a swing trade, this stock remains bullish. The demand for surgical masks are still intact and an FDA approval will push ITP’s stock valuation.