Mobilicom (ASX: MOB) up 162% on feedback from the NASDAQ quote

Mobilicom (ASX: MOB) (NASDAQ: MOB) shares are up 162% in Australia. MOB shares are rising because, well, actually, it's because MOB shares are rising. Which is, of course the way that trading frenzies start. There's no problem with trading frenzies, quite the opposite they are most fun and good money can be made in them. It's just that we have to judge when the frenzy peaks, when is it going to reverse? 

Mobilicom is interesting because it does have good technology. For some time it's been interested in mesh systems: “Mobilicom Limited operates as an end-to-end provider of cybersecurity and smart solutions for drones, robotics, and autonomous platforms. It designs, develops, and delivers smart solutions, such as cloud management software, communication datalink and mobile mesh networking terminals,” and so on and so on. However, it should be said that not long ago it was making announcements to the market about making $390k and $430k sales. That gives us a good idea of what the company itself thinks is a material event - we are not talking about globe bestriding colossus here.

On the other hand every large company does have to start somewhere

Mobilicom share price from ASX

That 162% though. Clearly this is something that the ASX is going to ask about. The answer from MOB? “The Company advises that it released an announcement to ASX on 10 July 2023 titled ‘MOB Secures Commercial Scale Purchase Order' and also released it on NASDAQ in accordance with NASDAQ listing requirements on the morning of their trading commencement. It is noted that the content of the announcement released on NASDAQ was the same as that released on ASX and there was significant trading in the Company's securities on NASDAQ following that release. This could be a reason behind trading in the Company's securities on ASX.”

The NASDAQ MOB quote is here.

The announcement about that DoD order here.

So, what it comes down to is that MOB shares are rising because MOB shares are rising. Which is even true, even if not highly informative. 

This is also how those frenzies work. The Oz and NY markets don't really share very much trading time, if any at all. So, the one market can take the action of the other and build upon it without that feedback loop of the original going “Well, now steady on here”. This will carry on until someone stays up late to trade on the other market to correct this.