The emergence of crowds of Reddit traders taking on Wall Street shorts to force short squeezes is surely one of the big stories in the markets this year.
But perhaps because the method, if not the goal, is still relatively new, its impact may be getting overhyped.
That at least is what TheStreet’s Jim Cramer argues when he looks at stocks seeing big moves that are based on something more tangible than tweets and emoticons.
Cramer cites Cleveland Cliffs (CLF) - Get Cleveland-Cliffs Inc Report as a prime example. Companies don’t get more old school than this steel maker, whose ships once plied the Great Lakes carrying ore from Minnesota to mills in Michigan and Ohio.
Read more on Real Money about what Cramer calls mistaken meme plays, like Clean Energy Fuels Corp. (CLNE) - Get Clean Energy Fuels Corp. Report. Profit from his insights on Plug Power PLUG and Amazon AMZN, too.
Shares of Cleveland Cliffs hit a new 52-week high of $24.77 on Thursday as the stock did indeed figure in Redditt discussions this week. But less than a year ago it was trading below $5, suggesting that the latest spike comes on top of something more fundamental.
Cramer notes that Cleveland Cliffs has remade itself as a fully vertically integrated steel maker poised to benefit from a surging economy and from President Biden’s continuation of Trump administration anti-dumping efforts focused on China. Also, commodity type companies tend to do well in inflationary times, he says.
Real Money’s Bruce Kamich says the technicals on Cleveland Cliffs show it’s pushing the pedal to the metal and is likely to continue.
Flipping the script, a little, Real Money’s Stephen Guilfoyle argues that there are legitimate metrics to justify looking at the granddaddy of meme stocks, GameStop (GME) - Get GameStop Corp. Class A Report. Well, one anyway, It's solvent.