Cheetah Net Supply Chain ($CTNT) thought acquiring JoyPak Supply would impress the Street. Instead, the $4M market cap stock surrendered 57% of its valuation before the lunch bell.
Looking at $CTNT across 21 historical gap-down sessions, the stock closes red 62% of the time, delivering an average session loss of -10.92%. When a micro-cap drops on M&A news, the historical odds point straight down, not toward a dead-cat bounce.
Catching falling knives on acquisition headlines is an expensive hobby.