Why did CTNT's Q4 2024 forecast raise eyebrows?

Cheetah Net Supply Chain Service Inc. (CTNT) recently announced plans to acquire TW & EW Services Inc., a move that has sparked significant interest and raised eyebrows, particularly due to the following factors: 1. **Significant Stock Price Movement**: CTNT's shares have experienced a substantial surge, trading higher by 270% to $6.91 following the acquisition announcement. This dramatic increase has led to heightened scrutiny, especially considering the company's past performance and the broader market context. 2. **Previous Struggles**: CTNT has faced considerable challenges, including a 52-week low, a steep decline of 85.34% over the past year, and a negative operating income. The company's precarious financial position has likely contributed to the skepticism surrounding its Q4 2024 forecast. 3. **Acquisition Details**: The acquisition of TW & EW Services Inc. for $1 million, involving a cash payment and stock valuation, has raised questions about the deal's potential impact on CTNT's financial health and strategic direction. The operation of TW & EW as a subsidiary may also bring about integration challenges and operational complexities. 4. **Market Reaction and Speculation**: The market's reaction to the news has been mixed, with some viewing the acquisition as a strategic move to strengthen CTNT's position in the supply chain sector. Others are skeptical, given the company's track record and the potential risks associated with the acquisition. In conclusion, CTNT's Q4 2024 forecast has raised eyebrows due to the company's history of struggles, the significant stock price movement post-announcement, the details of the acquisition, and the mixed market reactions. These factors combined have created uncertainty around the company's future prospects.