What happened
Shares of Urban One (UONEK -3.75%) are bouncing all over the place in morning trading Friday. Yesterday, the media company's stock spiked 29% higher when its casino proposal was accepted by Richmond, Virginia, gaming officials.
So what
Urban One was the winner out of six original casino bids submitted for the right to win the capital city's sole gaming license, according to Casino.org.
Yet Urban One's stock plunged 13% at the market's open today, falling as low as $4 per share, before fighting its way back to almost $5 a stub, before giving up much of the ground it just won, down at almost $4 again.
Image source: Getty Images.
Now what
There was obviously a surge of profit taking at the start of trading today, which cause Urban One's sell-off, but then stock market "circuit breakers" kicked in and halted trading on the stock. When it resumed trading, shares bounced higher before falling again. Expect this stock to continue being volatile.
While officials have chosen Urban One to get the license, voters have the final say this fall when they vote on a referendum on its proposal.
Urban One wants to build an integrated resort and casino in Richmond featuring a hotel, spa, restaurants, event center, and a 100,000 square foot casino. It intends to install 2,000 slot machines, 110 table games, and a sportsbook.
