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The curious case of eCargo and its rocketing stock

eCargo lit up the ASX boards this week, but no one could work out why? Credit: File

Just a fortnight ago, the trading volume for ecommerce solutions provider eCargo was looking much like a failed batting top order in the sport of cricket.

With the volume scorers being troubled by just one sole inhabitant, it begged the question, “Is one still the loneliest number when it returns for a second day?”. But the lull gave little clue as to the excitement that was to soon come.

After starting last week at 1.4 cents, eCargo’s price jumped 21.43 per cent on Monday, 76 per cent on Tuesday, 30 per cent on Wednesday and 28 per cent on Thursday. Its stock seemed to be following the model set by the hero in the classic children’s adventure story, “The Very Hungry Caterpillar”, as it simply got bigger and bigger and went as high as 5.5c.

But the movement clearly perplexed the stock watchers at the ASX, who by Thursday had decided it was time to write a sternly-worded letter.

Could eCargo offer a reason behind the sudden gain? Not on your nellie. Nothing to see here. Play on.

And that seemed to be it with the ASX and eCargo, like two fair goers both looking skyward as they tried to comprehend how the balloon suddenly got so high.

eCargo is a company that aims to connect global brands with Chinese buyers and provide the tools for its clients to grow sales in the Middle Kingdom. Its core focuses are on utilising technology and data to grow brands in China through its nationwide distribution and trading network.

For a company that was trading at just 1.4c, it curiously claims to have an impressive client list with its website displaying big guns such as Uncle Tobys, Blackmores, Swisse and Leggo’s on its website, among other household names.

Founded in 2014 and headquartered in Hong Kong, eCargo has two offices in China and another in Sydney. In May, it told investors its distribution revenue had increased by 41 per cent and its digital commerce services revenue was up by more than 50 per cent when compared to the 2021 financial year.

Last week was also one to remember for a couple of ASX-listed biotechs. Medical screening company Bcal Diagnostics surged a whopping 200 per cent after testing of its non-invasive blood test designed to detect breast cancer correctly picked up the disease at a 90 per cent strike rate. The results will serve as a huge boost to the company, which is looking to bring its product to market in the second half of next year.

Hemp technology company EcoFibre climbed 105 per cent from 17c to 35c and it probably did so in some particularly fashionable activewear after its manufa

cturing division secured a three-year deal to supply the American clothing colossus Under Armour with specialty “Hemp Black” high-performance yarn.

Ecofibre is expecting $9 million a year to jump in once the company is at full production. And it already has plans to add a second machine within the next 12-18 months as it looks to take advantage of its deal with a sportswear company that has the likes of Dwayne “The Rock” Johnson and basketball wizard Steph Curry in its stable.

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