Business news

    What?s in a name as social media games impact the ASX

    Article Image
    Highlights
    • Aussie miner with same stock code as GameStop surges 30%.
    • GameStop Corp. stocks rise 136% in a day.
    • GME Resources market cap boosted by AUD$15M.

    The speculation on social media that propelled little-known US game maker GameStop Corp. (GME) to record highs had first-time market watchers fearing wild speculation, while historians were provided with references to the railway stocks that took hold of the UK bourse during the Victorian era.

    In Australia, mineral explorer GME Resources happens to share the same stock code as GameStop and as a result its share price gained 30%.

    While a far cry from GameStop?s US$200 gain (136%) from $US147 to $347 on Jan. 27, the rise in the junior explorer of 28.9% over the same period is still impressive for a small cap miner where such gains are commonplace.

    However, it is the release of more tangible news such as a suite of drilling results and associated mineral deposits that tends to excite the investing class in Australia?s materials sector.

    The boost of AUD$15 million in GME Resources? market capitalisation would have no doubt buoyed a management team which can mark the last week as one of outperformance against the ASX materials index.

    Disclaimer

    Grafa is not a financial advisor. You should seek independent, legal, financial, taxation or other advice that relates to your unique circumstances. Grafa is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on the information provided directly or indirectly by use of this platform.

    Publisher
    Grafa