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Torchlight Energy Jumps, Apparently Joining Meme Stock Club

Torchlight received the third-most mentions in the Stocktwits chatroom over the last 24 hours, trailing only AMC Entertainment and Ocugen.

Torchlight Energy Resources  (TRCH) - Get Torchlight Energy Resources, Inc. Report 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 last 24 hours, with 142,117, Bloomberg reported Monday morning. It trailed only AMC Entertainment  (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report and Ocugen  (OCGN) - Get Ocugen Inc Report.

Torchlight was trading in pre-market trading on Monday at $3.35, up 7.4%. It has soared 457% over the past six months.

Sitting pretty with my stack to hold through merger, and several stacks shorty can use to make me rich,” JSpores wrote on Stocktwits Monday.

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The merger referenced by the poster is between Torchlight and Metamaterial MMATF, which makes advanced materials. Torchlight announced Friday that its shareholders have approved the deal.

Under terms of the deal, Metamaterial shareholder are expected to own 75% of the combined company, while Torchlight shareholders get 25%.

When it comes to meme stocks in general, MeetKevin's Kevin Paffrath said last week that "momentum stock" is the more accurate term for stocks such as GameStop  (GME) - Get GameStop Corp. Class A Report, AMC and Wendy's  (WEN) - Get Wendy's Company Report.

But founder Jim Cramer says that "meme stock" is a better name for GameStop and AMC, while "momentum stock" could be a better term for Wendy's. Cramer is in favor of keeping the phrase "meme stock" in order to distinguish normal trading action, where investors bet on companies they believe in, from meme stock trading, where Cramer says the objective is to punish short sellers. 

Cramer notes that not every name that comes up because of the Reddit traders can be sorted into buckets.