AFI inventories are growing by 200% as the NYSE prepares to remove Armstrong Flooring

Although it is New York Stock Exchange published removal plans Armstrong ground (NYSE:AFI) earlier this week, AFI shares closed more than 230% today. Several factors seem to be raising the stakes.

What’s going on with AFI stocks

April 2022 ended with a really gloomy note for Armstrong Flooring. AFI shares fell 75% and fell below 50 cents a share. Two days ago, it fell even further with the news that the NYSE would prepare for erasure.

After markets opened today, AFI began to grow rapidly. By noon, it had risen by 200%. The last time stocks rose, it was turned on rumors of sales.

Why it matters

After months of fighting, it’s no surprise that Armstrong Floor will be withdrawn soon. A published statement earlier this week, the NYSE notes the following;

The NYSE Regulation has decided that the company is no longer eligible for listing under Section 802.01D of the Listed Manual. On May 9, 2022, the company filed a petition for exemption under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for Delaware County and, as the company disclosed in its Form 8-K, was submitted to the SEC on May 9. , 2022, holders of the company’s equity securities are likely to be entitled to little or no return on their investments.

Armstrong quoted rising material costs as the main reason for filing for bankruptcy. CEO Michel Vermette noted that “the company’s growing costs have significantly exceeded its price strength.”

With that in mind, the question remains, what drove AFI’s unprecedented rise this afternoon?

It seems 13D insert with the U.S. Securities and Exchange Commission (SEC) proving it Aesop Creek has a 5.1% stake in AFI, stimulates interest. However, today’s performance of AFI shares must also be attributed to speculative price measures. It is unlikely that such a disclosure would so elevate a company, especially one on the brink of liquidation and bankruptcy.

What’s next

Anyone looking for evidence of speculation driving the growth of AFI stocks just needs to check out social media. Twitter (NYSE:TWTR) investors are watching it closely, but some mention the theory that its rise is part of it pump and discharge scheme. Such a scenario is not uncommon in the world of penny stocks, especially those over which Wall Street has given up.

Investors need to remember that the AFI stock will be on the verge of withdrawal and bankruptcy. In such proceedings, ordinary shares will essentially become worthless. This means that all profits, no matter how impressive, will be short-lived.

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At the time of publication, Samuel O’Brient had no position (direct or indirect) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.