YGMZ Plummets 22.8%: Reverse Split Drama Unfolds as Nasdaq Compliance Clock Ticks

Summary
• MingZhu Logistics (YGMZ) slumps to $0.1135, down 22.8% from $0.1471
• 1-for-16 reverse share split announced for Nov 12 to meet Nasdaq’s $1 bid price rule
• Intraday range: $0.112–$0.1238, with 6.22% turnover rate
• Technicals show oversold RSI (35.6) and bearish long-term trend

YGMZ’s freefall reflects investor skepticism over repeated reverse splits and liquidity risks. The stock’s collapse follows a July 2024 failed reverse split, with Nasdaq now demanding urgent action. Traders are bracing for volatility as the company’s survival hinges on a procedural fix that may deepen shareholder distrust.

Reverse Split Desperation Sparks Flight to Safety
YGMZ’s 22.8% intraday plunge stems from the company’s announcement of a 1-for-16 reverse share split to avoid Nasdaq delisting. This follows a July 2024 reverse split that failed to sustain the $1 bid price requirement. The move reduces shares from 76.7M to 4.8M, artificially inflating the share price but exacerbating liquidity concerns. Shareholders are wary of consecutive splits eroding value, while the 6.22% turnover rate signals active selling pressure. The stock’s 52-week low of $0.11 underscores a bearish technical backdrop, with the reverse split triggering panic among investors.

Transportation Sector Suffers as UPS Dips 3.57%
The Transportation sector faces headwinds as United Parcel Service (UPS) declines 3.57%, reflecting broader market jitters. While YGMZ’s collapse is tied to Nasdaq compliance struggles, the sector’s weakness highlights systemic risks in logistics and freight. UPS’s drop mirrors YGMZ’s bearish momentum, with both stocks pressured by macroeconomic uncertainties and regulatory scrutiny. However, YGMZ’s reverse split-driven volatility remains an outlier compared to the sector’s more measured decline.

Technical Deterioration Demands Short-Term Hedging
• 200-day MA: $0.8669 (far above current price)
• RSI: 35.6 (oversold but bearish bias)
• MACD: -0.153 (negative momentum)
• Bollinger Bands: Price near lower band ($0.112), indicating extreme weakness

YGMZ’s technicals paint a dire picture. The stock is entrenched in a long-term bearish trend, with the 52-week high at $1.54 now a distant memory. Short-term traders should monitor the 30-day support/resistance range ($0.1152–$0.1329) for potential bounces, but the 200-day MA at $0.8669 remains a critical psychological barrier. With no options available for hedging, cash-secured short positions or tight stop-loss orders are essential. The reverse split’s execution on Nov 12 could trigger a temporary rebound, but fundamentals remain fragile.

Backtest MingZhu Logistics Stock Performance
Here is a concise review of the “-23 %-intraday-plunge rebound” strategy on MingZhu Logistics (YGMZ) from 1 Jan 2022 through 9 Nov 2025, together with an interactive back-test panel for you to explore the detailed run.Key take-aways• Entry rule – Go long at the day’s close whenever the same-day Low is at least 23 % below that day’s Open. • Exit rules (risk control) – whichever comes first: – 20 % stop-loss (value chosen as a typical short-term capital-preservation threshold). – 100 % take-profit (captures large snap-back rallies yet avoids overstaying). – 20 holding-day time stop (limits capital tie-up). • Performance (2022-01-03 → 2025-11-09): – Total return -67.4 %, annualised -3.4 %. – Max drawdown -86.3 %. – Sharpe ratio -0.06 (risk-adjusted under-performance). – Only a few large winners (+60.8 % best trade) could not offset frequent deep losers (-69.2 % worst, -35.6 % average loss). • Interpretation – YGMZ’s extreme intraday plunges were typically signalling continued weakness rather than capitulation bottoms. The strategy, even with conservative exits, failed to generate positive expectancy.Next steps / ideas1. Tighten the entry criterion (e.g., combine with volume spike filters). 2. Short-side or options-based approaches may capture persistent downside. 3. Apply the same logic to higher-liquidity peers to test robustness.Feel free to interact with the module below to inspect individual trade paths and equity curves.

YGMZ’s Survival Hinges on Nasdaq Deadline
MingZhu Logistics’ survival now depends on the Nov 12 reverse split’s execution and investor reaction. While the split may temporarily stabilize the share price, the company’s liquidity risks and eroded investor confidence pose long-term threats. Traders should watch for a post-split bounce near $0.1329 but remain cautious as the 200-day MA looms as a distant target. Meanwhile, UPS’s 3.57% decline signals sector-wide fragility, amplifying the need for disciplined risk management. For YGMZ, the Nasdaq compliance clock is ticking—every day without a $1 bid price deepens the crisis.