The US stock market has entered full-on bananas mode.
Like a wind-up toy monkey clanging a broken symbol, the noise is reaching an atonal crescendo. Everywhere you look, madness grips the markets.
Here’s a short rundown of a few things that have happened today.
GameStop (short interest: 102 per cent), a company that seemed to be going the way of Blockbuster, is up 103 per cent today to a market cap of $9bn. A year ago, it was worth $282m and since, it’s recorded losses of $277m.
National Beverage Corp (short interest: 16 per cent), the owner of flavoured fizzy water brand La Croix, is up 24 per cent to $122 on no news. On January 12 -- less than two weeks ago -- it closed at $78.86.
Similarly Bed, Bath & Beyond is up 39 per cent to $42. Its short interest is, neatly, 42 per cent.
And so forth. You get the picture. Everywhere the squeeze is on. And there is nowhere to hide.
Oh, and its not just heavily shorted stocks but also, well stocks we thought we’d never hear about again. For instance, Blackberry -- yes that Blackberry, is up 42 per cent today and 211 per cent for the year. Its market cap is just under $8bn. Its trailing twelve month ebitda is $112m.
But while retail punters are very happy with their gainz, others aren’t.
Just a moment ago a text landed on our phone from a buyside analyst at a fundamentals-driven London-based shop. It read:
Judging by the current disbelief on the interwebs, they’re not the only one.
Related Links:GameStop can’t stop going up -- FT Alphaville