Today, popular retail favorite SOS (NYSE:SOS) has surged approximately 30% on heavy volume at the time of writing. Alongside other speculative bets, it appears traders are out in full force on some of these beaten-down stocks. For SOS stock, it’s been a rather rough go over the past year.
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Since surging to a high of nearly $16 one year ago, shares of SOS stock have since dwindled to the 70-cent level of late. However, today’s rise brings SOS stock up toward the $1 threshold, a threshold investors see as important.
Well the New York Stock Exchange (NYSE), like other exchanges, has some compliance rules around penny stocks. Any stock trading at less than $1 per share could be delisted, should the company fail to enact a reverse-split, or other measures to bring that stock price up. For retail investors, perhaps last week’s warning letter from the NYSE prompted action among investors. SOS stock had previously been viewed as a short squeeze candidate and did indeed shoot higher on the previous mania we saw last year.
Is SOS Stock Squeezing Again?
Today’s price action with SOS on little news suggests retail investors may be attempting to orchestrate another impressive move higher. Perhaps this is a bid to save a favorite trading vehicle. Or maybe it’s because investors see a future for this China-based blockchain company. Whatever the reason, SOS stock is now once again moving like a penny stock, in penny stock territory.
As mentioned previously, SOS is one of the riskier investments investors can look at in today’s market. The overall appetite for risk in the market today has been significantly reduced. For those looking at SOS stock as one that can hold these gains, perhaps it’s worth a gamble. However, most investors may want to steer clear of this stock, despite its juicy price action today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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