Nova Lifestyle (NVFY) Soars 64.79% on Retail Frenzy Post-Follow-On, Hits $4.398 High

Nova Lifestyle (NVFY) surged 64.79% on Thursday, marking its fifth consecutive day of gains with a cumulative rally of 160.36% over five trading sessions. The stock hit an intraday high of $4.398, its highest level since September 2025, driven by a 74.91% single-day spike amid heightened retail investor activity. This sharp rebound follows a $9 million follow-on public offering announced earlier in the week.

The offering, led by American Trust Investment Services, involved the issuance of 9.8 million shares and warrants at $0.915 per share, with each share paired to two warrants exercisable at $1.098—a 20% premium. Proceeds are earmarked for marketing, debt repayment, and operational expenses. However, the low offering price and aggressive dilution—nearly doubling the company’s share count—have raised concerns about financial strain. The move underscores limited access to traditional financing options, with the warrants potentially exacerbating future share dilution if exercised.

Technical indicators highlight overbought conditions, with the RSI at 70.83 and the stock trading well above its 200-day average of $1.09. Historical patterns suggest a high probability of short-term correction, as prior surges of similar magnitude have historically reversed within weeks. While the offering provides immediate liquidity, structural challenges—such as reliance on equity for debt repayment and a debt-free peer landscape—cast doubt on long-term value retention. Investors are advised to monitor key support levels at $3.00 and $2.00, with a stop-loss below $3.50 recommended for long-term positions.