Why an Elon Musk tweet led to a 5,675% surge in health-care stock Signal Advance

Why an Elon Musk tweet led to a 5,675% surge in health-care stock Signal Advance

Talk about a case of mixed Signals.

On Jan. 6, shares of Signal Advance

closed at 60 cents a share, a solid gain for the Rosharon, Texas-based biotechnology company formerly known as Biodyne Development Company.

A day later, on Thursday, the company’s shares surged 527% to $3.76 — and then all heck broke lose, after apparent ticker confusion amplified a move in the over-counter-traded security into the ether. The surge came after Tesla Inc.
CEO Elon Musk recommended that people “use signal,” shifting to the encrypted-messaging platform Signal from Twitter

and Facebook
following the Sturm und Drang over politics and social-media platforms after the riots on Capitol Hill last week.

Signal, the messaging platform, isn’t a publicly traded company, but that didn’t stop the unrelated Signal Advance from continuing its rise, surging 5,643% and pushing its market value to $3.164 billion from a mundane $55 million as of last Wednesday.

The move was so powerful that the messaging service weighed in on Friday:

The curious thing is that much has already been made about the fact that Signal Advance isn’t Signal in a number of news articles, but the former’s shares have refused to return to Earth and enjoyed a nearly 400% surge on Monday.

Signal Advance appeared to be down on Monday, with those seeking access to it getting this message: “The website is temporarily unable to service your request as it exceeded resource limit. Please try again later.”

A call to the company, which was founded by Chris M Hymel in 1992, according to FactSet, wasn’t immediately returned.

The messenger app Signal bills itself as an open-source service developed by the Signal Foundation and Signal Messenger around 2014 and it has seen usership pick up during periods of political upheaval.

Source link


Please enter your comment!
Please enter your name here