![]() ![]() That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. It doesn’t seem like it has much more room to fall. MMAT stock has declined almost 80% over the past six months and is currently trading at 21 cents per share. The 8-K filing does say that SEC staff has recommended a civil enforcement action against the Wells Notice recipients. ![]() It also doesn’t mean that the SEC has determined wrongdoing on behalf of Meta Materials, Palikaras and Brda. Granted, a Wells Notice doesn’t mean that the SEC will file any charges. Specifically, the Wells Notice received by the Company states that the proposed action would allege violations of Section 17(a) of the Securities Act Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B) and 14(a) of the Exchange Act of 1934 and Rules 10b-5 and 14a-9 thereunder and Regulation FD.”įor further context, Section 17(a) of the Securities Act of 1933 “makes it unlawful to ’employ any device, scheme, or artifice to defraud’, ‘obtain money or property’ by using material misstatements or omissions, or to ‘engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser.'”Ĭornell Law School notes that it is closely linked to Section 10b of the Securities Exchange Act of 1934 and SEC Rule 10b-5, both of which are often employed by investors making claims of fraud. Torchlight said last week it would raise $100 million by selling its shares, following in the footsteps of other beneficiaries of meme stock rallies such as GameStop Corp and AMC.“The Wells Notices each state that the SEC staff has made a preliminary determination to recommend that the SEC file a civil enforcement action against the recipients alleging violations of certain provisions of the U.S. The stock also had a short interest of 24.7% of freefloat, data from analytics company Ortex showed. The two stocks are up around 960% and 2560% year-to-date, respectively.ĭata from brokerage Fidelity showed Torchlight was the second most traded stock on its platform on Friday, with buy orders outnumbering sell 1.6-to-1. Shares of GameStop were recently down around 7%, while AMC’s were off by 5%. Rallies in video game retailer GameStop and AMC Entertainment Holdings have in recent weeks helped reinvigorate a meme stock craze that began at the start of the year, fueled in-part by retail investors congregating on platforms such as Reddit’s WallStreetBets. ![]() I don’t think there’s investors like hedge funds or mutual funds saying we’ve got to invest in this,” said Dennis Dick, head of markets structure and proprietary trader at Bright Trading LLC. “I think it’s social media driven once again. Message volumes on Stocktwits related to Torchlight rose 26%, with nearly 98% reflecting positive sentiment toward the oil and gas explorer’s shares on Monday afternoon. ![]() Torchlight was among the most discussed stock on trading-focused social media site Stocktwits, a platform commonly seen as a measure of interest from retail investors. ![]()
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