Clover Health (CLOV) added to gains as the retail-trader frenzy continues. CLOV stock jumped again. EV stocks Canoo (GOEV) and Workhorse (WKHS) rallied too.
Meanwhile Lordstown (RIDE) sold off further after a 10-K/A filing warned, “We require additional capital to implement our business plan, and it may not be available on acceptable terms, if at all, creating substantial doubt as to our ability to continue as a going concern.”
Clover Health Stock
CLOV stock jumped 25% in premarket trading on the stock market today, following Tuesday’s 86% pop and Monday’s 32% gain. Clover was among the most mentioned companies in StockTwits, a social media platform where traders, investors and entrepreneurs share ideas.
MarketSmith chart analysis shows Clover Health’s relative strength line bolted up on the stock surge.
Early Wednesday, the health insurer announced plans to scale its in-home primary care program, Clover Home Care, through the Centers for Medicare and Medicaid Services’ new direct contracting model.
Canoo stock rallied 12% early Wednesday after leaping 20% Tuesday, and Workhorse added 11% to its 11.8% pop yesterday.
But Lordstown stock slipped 4% after diving 16.3% in a sharp reversal on its going-concern warning.
Wendy’s (WEN) dipped 0.7% after jumping 26% Tuesday, catapulted into meme-stock status after several mentions on Reddit’s WallStreetBets forum. On Wednesday, the fast-food chain announced a series of refinancing transactions.
AMC Stock, GameStop Stock
So-called meme stocks have rallied over the last six months, many of them outlasting their 15 minutes of fame.
AMC Entertainment (AMC) has capitalized on the trend to raise $1.24 billion equity in less than a month. It has plans to sell 25 million more shares in 2022. Shares fell 5% Wednesday.
GameStop (GME), which was once on the verge of bankruptcy, has a comeback strategy. It’s attempting a pivot to global e-retailer. It brought in new management, teamed up with Microsoft (MS) in a multiyear deal to expand its offerings and modernized its fulfillment facilities. Shares rose 1.6% ahead of its earnings report after the close.
But while the stocks have notched several new highs and created wealth for many investors, they’re not traditional CAN SLIM stocks. Many of them have weak fundamentals and don’t yet deserve their high valuation.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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