YUUZOO had a nice Gap up this morning at opening price of 22.5 cents and went up higher to touch 24.5 cents. But the closing price of 23 cents wasn't convincingly higher then the opening price of 22.5 cents. Although the volume is super high. We may have to observe how the share price pattern going to be for the next few days so as to determine the next direction going to be.
The gap up was driven by the good news as reported on 30th Mar 2016 on the SGX website (http://infopub.sgx.com/FileOpen/Alisports%20press%20release%20FPR555.ashx?App=Announcement&FileID=395932)
ALIBABA AND YUUZOO SIGN AGREEMENT FOR YUUZOO TO MANAGE AND RUN ALIBABA SPORT GROUP’S E-SPORT EVENTS IN CHINA
- YuuZoo signs agreement with Alibaba, the largest e-commerce and payment company in China, for YuuZoo’s Chinese JV YuuGames to manage and run Alibaba’s eSport events throughout China
- Alibaba through Alisports group plans to invest RMB 100 million (US$ 15.4 million) for WESG alone
- Multimillion-dollar contract reinforces the position of YuuGames as a leading organiser of eSport events in China
- Partnership with China’s largest e-commerce and payment company opens the door for discussions about co-operation in YuuZoo’s other areas of activity in China, including games, social networking, e-commerce and payments
- RMB 35.6 million (US$5.5 million) prize money awaits grand champion of the competition
Under the agreement, AliSports will pay YuuGames a multimillion US dollar fee to organise and run WESG and manage AliSports’ E-Sports Clubs Competition Center. Through this deal, YuuZoo will gain a significant mumber of new users, who will be added to YuuZoo’s fast-growing userbase. Further, YuuZoo will generate additional revenue from promotional fees, advertising revenue, and e-commerce sales.
AliSports and YuuGames are planning to launch several eSports events this year in 15 cities across China, which is home to over 100 million eSports fans, 2 and over 440 million gamers.
This is really a piece of good news for YUUZOO to secure this agreement to MANAGE AND RUN ALIBABA SPORT GROUP’S E-SPORT EVENTS IN CHINA .
I think the share price may continue to trend higher. If it is able to cross over 24.5 cents with ease then it may have a high chance to move up to re-visit 28 cents soon.
Breaking out of 28 cents with good volume that may propel to drive the share price higher towards 30 cents with extension to 35 cents.
(trade base on your own decision)
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