Zomedica, Vislink, Senseonics and Other ‘Meme’ Stocks Soar Again

Senseonics, Zomedica, and other ‘meme’ stocks surge, continuing the Reddit forum-driven rally that has propelled the likes of GameStop and AMC Entertainment.
Author:
Updated:
Original:

Nemaura Medical  (NMRD) - Get Report, Ring Energy  (REI) - Get Report, Senseonics  (SENS) - Get Report, Zomedica  (ZOM) - Get Report and a host of other obscure "meme" stocks all surged on Monday, continuing the Reddit forum-driven rally that has propelled the likes of GameStop  (GME) - Get Report, AMC Entertainment  (AMC) - Get Report and even BlackBerry  (BB) - Get Report and Express  (EXPR) - Get Report to new heights - and depths.

Nemaura Medical was up more than 34% after surging as much as 50% in early trading, while Ring Energy was up 25%. The duo had less than a $200 million market value each as of Friday’s close. Both appeared on a long list of banned stocks on the Reddit forum WallStreetBets.

Other small- to mid-cap stocks including Vislink Technologies  (VISL) - Get Report (up 14%), Phunware  (PHUN) - Get Report (up 24%) and Castor Maritime  (CTRM) - Get Report (up 20%) also were trading higher on Monday, though some stocks including clothier Naked Brand  (NAKD) - Get Report gave up earlier gains. Shares of GameStop were down 7%, while shares of AMC were down 12%. 

The Redditt-driven market frenzy began in earnest last month, when retail traders using using Reddit messaging board WallStreetBets and StockTwits and placing trades through free online trading apps like RobinHood collectively ganged up on short-sellers with positions in stocks like GameStop and AMC.

Their efforts not only squeezed hedge funds and other large players out of their positions, but also pushed the value of the shares they were betting would fall to dizzying new heights - and subsequent drops.

The activity has continued among lesser-known names as retail investors look to make a quick profit on otherwise obscure companies that aren’t widely known or followed by Wall Street analysts or larger investors - and that have little in the way of long-term fundamentals to justify significantly higher share-price valuations.

It has also raised red flags on Wall Street and in Washington over the amount of volatility generated in financial markets, and how that kind of volatility impacts trading, valuations and even the stability of financial markets overall.

Treasury Secretary Janet Yellen last week summoned U.S. financial regulators to discuss recent volatility in financial markets revolving around GameStop, AMC Entertainment and other disparate companies caught up in the trading frenzy.