Clover Health soars as it becomes new Reddit 'memestock' darling
Clover Health Investments Corp (NASDAQ:CLOV) has become the latest firm to benefit from the latest round of a Reddit-inspired trading frenzy from small investors as shares in the medical insurance group nearly doubled in value overnight.
The company ended Tuesday’s session in the US around 86% higher at US$22.15 as traders, many of whom are members of the Reddit forum r/wallstreetbets, piled into the stock.
READ: SEC warns it is monitoring AMC and other memestock trading activity following latest rally
Clover’s rally also showed signs of continuing on Wednesday morning, with the shares up 16% at a record high of US$25.73 in pre-market trading in New York.
The interest of the wallstreetbets community in Clover appears to be similar to that of other Reddit darlings AMC Entertainment Holdings Inc (NYSE:AMC) and GameStop Corp (NYSE:GME), namely that the stock is seeing large amounts of short selling activity from institutional investors betting that its price will decline.
In a post to the forum early on Wednesday morning, user u/Zewdle stated that Clover “is a very shorted stock currently” and that the recent surge in the price was an effort to put the squeeze on the short-sellers.
“Because [Clover’s] so highly shorted and we have a ton of Apes hoping on the stonk going to the moon, they’ve bet on it. Opening many contracts on the four-leaf clover”, the user said, with ‘Apes’ referring to users of the forum.
However, u/Zewdle also said that Clover may be different to other ‘memestocks’ that have benefited from the retail buying frenzy in the past, saying the firm has, in their opinion, “great fundamentals”.
The Reddit-inspired retail trading mob, which originally shot to prominence in late January during a buying frenzy over GameStop shares, has sparked several unexpected surges in value for a handful of companies over the first six months of the year as the cohort sought to inflict large losses on short sellers.
Aside from AMC and GameStop, other companies that have been targeted for the ‘short squeeze’ treatment have included mobile phone makers BlackBerry Ltd (NYSE:BB) and Nokia Oyj (NYSE:NOK).
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/951808/clover-health-soars-as-it-becomes-new-reddit--memestock--darling-951808.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
