GameStop (NYSE:GME) is becoming active again after a brief period of consolidation. GME stock had formed a strong support level at the $150 price level. The stock had tested this support level numerous times proving that it is a durable support level. GME stock has now begun to rally off this support base rising nearly 30% on Aug. 24. After a sharp rise, the stock broke through its 50-day moving average, indicating that this could be the start of another leg-up.Source: rblfmr / Shutterstock.com
In keeping with the r/WallStreetBets mantra of “diamond hands,” enthusiasm in the forums has not waned. According to data from Quiver Quantitative, GME stock is still amongst the top five in daily discussions on r/WallStreetBets. This also excludes GME-specific subreddits which are solely focused on GameStop. These data points show that Reddit traders have not grown tired of GME.
GME stock has almost become completely detached from the fundamentals of GameStop. That’s not to say that company developments no longer matter. Rather, what is going on is that traders are incredibly forgiving when it comes to valuation assumptions and multiples. Therefore, the main drivers now of GME stock will be news flow and the resulting momentum.
Will GME stock do another legendary move up?
Record Video Game Sales to Propel GME Stock
Video game sales continue to rise despite the dire warnings from April this year. This is especially impressive considering the tough pandemic comps. Since 2020, video game sales have increased sharply due to everyone being locked inside their homes. Therefore the fact that video game sales have actually grown year-over-year in 2021 shows that a behavioral shift has occurred.
I believe that many people began playing more video games in 2020 in order to cope with the pandemic. These people have stuck around as customers in 2021 despite the easing of restrictions. In other words, they have been converted into gamers.
July was the third straight month of year-over-year growth for the video game industry. This continuous growth was only halted by April’s decline. According to NPD Group, video game sales in July were $4.6 billion, up 10% from last year. Year-to-date spending in 2021 as of July was $33.5 billion.
The continued strength of video game should bode well for GameStop’s revenue. More importantly, the positive headline will provide momentum for GME stock.
Meme ETF to Drive GME Stock Higher
Another important development for GME stock is the announcement of a meme-focused ETF. Roundhill Investments filed its intention with the U.S. Securities and Exchange Commission to launch the Roundhill MEME ETF. According to the filing, stocks to be included in the ETF are determined via a “social media activity score”. This score is based on the number of mentions over a trailing 14-day period on certain social media sites.
The top 50 issuers by social media score are then ranked by short-interest. The top 25 are selected to be part of the ETF with equal weights. The components are rebalanced on a bi-weekly basis.
Having an ETF focused primarily on meme stocks should open the flood gates to more potential investors in GME stock. This is because investing in meme stocks requires a bit of research and effort. Investors need to read the forums and keep up on the news.
However, this is ignoring a whole set of investors who invest passively. Thanks to this ETF, passive investors now have the opportunity to participate in meme stocks as the ETF automatically rebalances its holdings. As one of the most popular meme stocks, GME would surely benefit from this development. I anticipate more funds flowing into GME from passive investors via this ETF.
The next few days could be very interesting for GME stock. By my observation, there is a good chance we could be seeing a move up in the future. I wouldn’t necessarily bet the farm on it. However short-term-oriented traders should consider GME stock.
On the date of publication, Joseph Nograles held a LONG position in GME. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joseph Nograles is a part-time freelance copywriter focused on the financial industry. He has worked in a wide variety of industries from tech to consulting with one of the “big four.” He has always enjoyed analyzing businesses and has been a CFA charterholder for nearly a decade now.
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Top Silver Stocks To Watch This Week
Will These Silver Stocks Go Up? The market for silver stocks has…
The post Top Silver Stocks To Watch This Week appeared first on Gold Stocks to Buy,…
Will These Silver Stocks Go Up?
The market for silver stocks has been quite an interesting one to watch in the market in recent times. The pandemic caused silver assets to skyrocket in price throughout the last year and a half. The percentage gains for many silver assets were higher than gold stocks. This brought a lot of new investors to the metal that may have overlooked it before. One other recent event also brought a lot of new people to silver investing. You have certainly heard of the GameStop situation where Reddit traders boosted the price of the stock.
Well in early February the same thing happened to silver prices as a result of retail traders according to the mainstream media. But Reddit traders quickly stated that it was not their doing. This caused the price of the metal to pull back. What this did do, was attract a lot of new eyes and investors to silver related assets. The price of silver has been able to remain relatively stable at the moment.
So what else is affecting silver prices? Jobless reports often affect the price of silver and gold. It will be interesting to see the effect that unemployment and the economy has on the metal in the future. There are many great silver stocks to watch at the moment despite the volatility in the market. Let’s take a look at four silver stocks that show market potential right now.
Top Silver Stocks To Watch
- First Majestic Silver Corp. (NYSE: AG)
- Fortuna Silver Mines Inc. (NYSE: FSM)
- Endeavour Silver Corp. (NYSE: EXK)
First Majestic Silver Corp. (NYSE: AG)
First Majestic Silver Corp. is a mining company that primarily focuses on acquisition of land, exploration, development, and production of mineral assets. The company’s biggest projects include silver production in Mexico. Currently, First Majestic has 100% interest in the San Simas mine, Santa Elena mine, and holds interest a variety of other land too.
On August 16th, First Majestic reported its second quarter financial results for 2021. The company’s revenue achieved a new record, at $154.1 million. Its average realized silver price per ounce increased quarter over quarter as well.
President and CEO Keith Neumeyer said, “As a result of the higher revenues, our quarterly dividend increased by approximately 33% when compared to the prior quarterly payment. The mining units generated $29.4 million in mine operating earnings due to strong production and higher realized metal prices.” With this in mind, is AG stock a contender for your list of silver stocks to watch?
Fortuna Silver Mines Inc. (NYSE: FSM)
Fortuna Silver Mines Inc. is a mining corporation with a focus on exploration, extraction, and processing of precious metals. It actively explores for gold, silver, zinc, and lead. Its main properties include the Caylloma and San Jose mines, as well as the Lindero gold project in Argentina.
On June 28th, Fortuna and Roxgold Inc. announced a business combination. President and CEO of Fortuna Jorge A. Ganoza said, “The successfully completed business combination creates a low-cost intermediate gold and silver producer with four operating mines and a permitted development project. The company will benefit from a robust exploration pipeline and expanded presence in the Americas and West Africa, two of the fastest growing precious metals producing regions in the world.”
On September 20th, the company announced changes in its management team. David Volkert retired as the VP of Exploration in Latin America, which goes into effect on September 30th. Other than this, the company has not released a large amount of recent updates. So now it will be interesting to see where FSM stock goes from here. Will you add FSM to your silver stock watchlist?
Endeavour Silver Corp. (NYSE: EXK)
Endeavour Silver Corp. is a silver stock that just went up in the market. This company acquires land, explores it, and develops it. Endeavour works on the processing, refining, and reclamation at its mineral properties. Most of Endeavour’s primary assets are located in both Mexico and Chile. Endeavour for the most part only searches for silver and gold at its mines.
Back in August, the company announced its second-quarter financial results. The CEO of the company, Dan Dickson said, “From a financial standpoint, our Q2 performance was stronger than the respective period last year, as revenue, cash flow and earnings were all higher. However, our operating costs are clearly not where we want them to be. We are working to optimize our operating cost profile in the second half of 2021.”
Endeavour’s metal production grew 80% during the quarter, and its gold production grew 92%. These numbers were in line with Endeavour’s guidance for the year. Its net revenue in the second quarter was up 136% to $47.7 million. Now the company has completed the acquisition of the Bruner Gold Project in Nye County, Nevada. With this in mind, will you add EXK to your mining stock list?
Silver Stocks To Watch
There are plenty of silver stocks to watch in the market in 2021. Some think that there is not an opportunity to invest in silver stocks at the moment, but there are still many companies with potential in the market.
The post Top Silver Stocks To Watch This Week appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.
Inca One Gold Posts Record Production Figures For August 2021
Records continue to be beat by Inca One Gold (TSXV: INCA), whom this morning reported its best-ever processing results. The
The post Inca One Gold Posts…
Records continue to be beat by Inca One Gold (TSXV: INCA), whom this morning reported its best-ever processing results. The firm managed to post record production for the month of August, with production improving 163% on a year over year basis.
Production in August hit 6,838 tonnes, or 221 tonnes per day, the best ever monthly performance for the company. Production occurred at both of the firms plants, and beat the previous record of 6,581 tonnes.
Gold produced came in at 2,309 ounces, while ore deliveries amounted to 6,982 tonnes – which points to the potential for a very strong September for the company as well. Gold production was up 57% year over year, while deliveries improved 131%.
“It validates our business model and operational aptitude that we were able to so quickly and effectively deploy the working capital received from our second Gold Prepayment Facility received in the first week of August,” commented CEO Ed Kelly. “The Company, now armed with sufficient working capital, its only 10% off its record processing pace set in 2018,” he continued.
The results continue to be driven by the working capital the firm was able to access via a $9.0 million gold pre-payment facility. A similar facility drove record results for the firm in the months of May and July earlier this year, with the working capital expected to continue to provide strong results for the firm on a go-forward basis.
Inca One Gold last traded at $0.34 on the TSX Venture.
FULL DISCLOSURE: Inca One Gold Corp is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Inca One Gold Corp on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
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O2Gold Intersects 20.11 g/t Gold Over 0.7 Metres At Aurora
O2Gold (TSXV: OTGO) last night reported on its first drill results from its Aurora Property in Colombia. The firm had
The post O2Gold Intersects 20.11…
O2Gold (TSXV: OTGO) last night reported on its first drill results from its Aurora Property in Colombia. The firm had previously halted trading in its equity due to the assay results received.
The first drill hole reported by the company comes from the Aurora Tunnel within the Main Aurora Vein, where O2Gold encounter 20.11 g/t gold and 3.30 g/t silver over 0.7 metres, within a larger interval of 9.19 g/t gold and 1.89 g/t silver over 1.6 metres. Mineralization was encountered at just 97.4 metres of depth.
The hole, referred to as AUR-21-001, also encountered 12.30 g/t silver over 3 metres, at a depth of just 8.70 metres within fragmented quartz veins. The hole was drilled to a total depth of 220 metres.
The hole marks the first within an ongoing 8,000 metre drill campaign, which currently has two drills turning on the firms property. Four holes have been completed to date, with assays pending on three holes presently.
O2Gold last traded at $0.21 on the TSX Venture.
Information for this briefing was found via Sedar and O2Gold Inc. The author is currently long the equity. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The post O2Gold Intersects 20.11 g/t Gold Over 0.7 Metres At Aurora appeared first on the deep dive.tsx tsxv gold silver
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