Minim (NASDAQ: MIMN) stock rose 142% yesterday and then premarket has come back down 28%. This is one of those examples of stock price volatility we'd normally think of being associated with one of the Chinese meme stocks. At which point perhaps folk just got a little confused over what Minim does?
As to that, what MINM does, it's a networking and router gear company. Lots of lovely talk about the internet of things and so on. All of which is great but there's no particular information suggesting this is a breakout moment for the company. It does have the right to manufacture under the Motorola name - a part of the breakup of that company presumably - but little else that would lead to expecting a significant price movement.
Actually the recent performance has been bad enough that they needed to do a reverse stock split back in March a 1 for 25 one. OK, so that saves the NASDAQ quote but it doesn't seem to have done much else for them.
Minim stock from NASDAQ
We're not predisposed, in the absence of any reports from the company itself, to think that there has been anything transformational here. After all, what can there be that's transformational for such a company? More importantly, what can there be that isn't sufficiently important that they'd have to announce it to market immediately? So we're left with the thought that this is just another example of folk rotating through the microcaps to ramp in their turn. We cannot, and would not, say that we are absolutely certain on this but in the absence of the confirmation of any particular reason then we do assume that there is no reason. We go on from that to suggest that if there's no particular reason then the stock price rise isn't going to stick. It's just a bit of speculative fluff that is.
The other way to make much the same point is that if there's no useful information around to explain the stock price change then the stock price change itself is unlikely to last.