It’s the power of Elon Musk that one tweet can send the shares of a stock up. Even from the wrong company.
Shares of Signal Advance soared after Tesla CEO tweeted ‘Use Signal’ early on January 7. Musk probably meant Signal, the encrypted messaging service and app. It was developed by a non-profit, the Signal Foundation, and is not a stock exchange.
Investors and fans of the South African billionaire quickly bought shares in Signal Advance, a technology component manufacturing company headquartered in Rosharon, Texas, which trades under the SIGL brand in off-the-counter markets, but no connection do not like the messaging program or Musk himself. .
Prior to Musk’s tweet, Signal Advance shares had not climbed above 60 cents. Due almost entirely to investors’ signals being crossed (sorry), the stock closed at $ 3.76 on January 7th and $ 7.19 on January 8th. Momentum accelerated even further yesterday, pushing the closing price to $ 38.70, up 6350% from three trades. sessions. (It returned to Earth a bit this afternoon and traded around $ 12 at the time of publication.)
The wrong operations continued to increase the present value of Signal Advance. It is so small that it does not need to submit financial information to the SEC for 2020. In December 2019, he made no revenue and a net loss of $ 125,400, but according to Factset, it is now worth more than $ 3.5 billion.
Investors pouring money into the wrong company also took place early last year when shares of Zoom Technologies climbed due to similar confusion following positive news about the remote control company Zoom Video Communications. In March, shares of the Chinese holding company, which trades with the symbol ZOOM, rose from $ 1.10 to an intraday high of $ 60. Zoom Video Communications trades as ZM on NASDAQ.