Del Taco Restaurants (TACO) - Get Report and B&G Foods (BGS) - Get Report have joined the meme stock club, rising Tuesday amid large numbers of mentions for both companies on Reddit’s WallStreetBets's message board in recent days.
In pre-market trading Tuesday, Del Taco was trading at $11.30, up 6.5%; its stock has gained 16% since June 4. B&G was rising 2.7% to $34.99 in pre-market trading Tuesday, with its shares climbing 22% since May 12.
TheStreet.com founder Jim Cramer isn’t so impressed with B&G, however. “B&G food--reasoning from the memes is ill-advised,” he tweeted on Tuesday morning. “The lack of knowledge is really extraordinary. But it is hysterical.”
Cramer also tweeted on Tuesday about Petco Health and Wellness (WOOF) - Get Report and Corsair Gaming (CRSR) - Get Report, asking “where are the meme buyers of Petco today? Where are the bag holders? How about Corsair?” Cramer wrote.
“How much capital destruction can these guys cause. WSB [WallStreetBets] skate in your $ (AMC) - Get Report [AMC Entertainment] and $ (GME) - Get Report [GameStop] lanes where you have firepower. Stop being tools of the shorts.”
Petco recently traded down 8.5% to $25.70 after soaring almost 18% yesterday, while Corsair was up 1.5% to $36.55 after jumping more than 11% on Monday.
In other meme stock news, Wendy’s WEN shares rose Monday after Northcoast Research analyst Jim Sanderson upgraded the fast-food chain to buy from neutral, just a week after he downgraded it.
The downgrade came after the Reddit crowd helped push the stock up 26% to $28.87 last Tuesday. But the stock fell back to $24.14 at Friday’s close, making Sanderson more comfortable with recommending it again.
Meanwhile, Torchlight Energy Resources TRCH shares jumped Monday, as the oil and gas producer appears to have joined the meme stock club.
Torchlight received the third-most mentions in the Stocktwits chatroom over the prior 24 hours.