MingZhu Logistics (YGMZ) Plunges 27.8% as Reverse Split Fails to Quell Delisting Fears

MingZhu Logistics (YGMZ) plunged 27.8% in pre-market trading on Nov 11, 2025, following its announcement of a 1-for-16 reverse share split to comply with Nasdaq’s $1 bid price rule. The move comes after a failed July 2024 reverse split and signals escalating liquidity risks, with investors reacting to repeated procedural attempts to stave off delisting. The stock’s 52-week low of $0.11 and an oversold RSI of 35.6 highlight deteriorating technical conditions.

The reverse split will reduce outstanding shares from 76.7M to 4.8M, artificially inflating the share price but deepening concerns about market depth. Shareholders have shown skepticism toward consecutive splits, with a 6.22% turnover rate indicating active selling pressure. The company’s survival now hinges on the Nov 12 implementation of the split, though fundamentals remain fragile and investor confidence eroded.

Technical indicators reinforce the bearish outlook: the 200-day MA at $0.8669 remains a distant target, while the MACD (-0.153) and Bollinger Bands ($0.112) signal extreme weakness. Short-term traders are advised to monitor the $0.1152–$0.1329 support/resistance range for potential bounces but face challenges without hedging options. A post-split rebound is possible, but long-term recovery depends on addressing underlying liquidity issues.

Backtest analysis of a “-23% intraday plunge rebound” strategy from 2022–2025 reveals a -67.4% total return and a Sharpe ratio of -0.06, underscoring the strategy’s ineffectiveness. Frequent deep losses (-35.6% average) outweighed occasional gains, suggesting YGMZ’s extreme volatility reflects ongoing weakness rather than capitulation. Adjustments like tighter entry filters or short-side approaches may better capture persistent downside risks.

The company’s Nasdaq compliance clock is rapidly expiring. While the reverse split could temporarily stabilize the price, the broader context of regulatory scrutiny and sector-wide fragility—evidenced by UPS’s 3.57% decline—underscores the need for disciplined risk management. For YGMZ, every day without a $1 bid price deepens the crisis, with liquidity and trust in freefall.