Linkers Industries Ltd. (NASDAQ:LNKS) stock fell sharply on Monday as traders locked in profits following last week’s explosive rally, with the thinly traded micro-cap stock giving back part of its recent gains.
The stock was down more than 18% in midday trading after soaring about 67.5% late last week following the company’s announcement that it would increase its stake in Thailand-based LPW Electronics Co. Ltd.
Profit-Taking Follows Massive Rally
The selloff appears to be driven primarily by profit-taking after Linkers announced a definitive agreement to acquire an additional 29% stake in LPW Electronics for approximately $2.35 million.
The transaction will increase Linkers’ ownership in the Thai wire harness manufacturer from 20% to 49%, strengthening its exposure to the Southeast Asian automotive and electronics supply chain.
