Minim (NASDAQ: MNIM) stock was up 900% at one point yesterday. MNIM then also closed down some 50% from that higher and dropped another 22% after hours. The whole thing apparently being nothing but a speculative storm rather than the flurry of that headline. Management has been asked what it’s all about and they’ve said they’ve no clue either.
No, really: “Manchester based Minim Inc. issued the following statement regarding unusual trading in its common stock. Normally, the Company does not comment on market activity or rumors. However, Minim is not aware of any material, undisclosed information related to the Company that would account for the recent increase in the market price and increase in the level of trading volume of its shares.”
We might observe that Minim has been pretty much a complete dog of a stock this year. They already had a 25 for one reverse stock split and yet even after that the stock price still went down to under the $1 minimum bid price again.
Minim stock price from Google Finance
We’ve looked before at Minim: “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.”
There’s little to add to that. The speculation yesterday seems to have been just that, pure speculation. As such we expect it to fade back too. The background really being that the starting point for the market capitalisation was under $2 million. This isn’t small cap, a microcap even, this is a nanocap stock. As such it doesn’t take much buying to set off a momentum trade - or, if it’s planned by someone, a pump and dump. We’re not casting aspertions here, but we reckon one of those two causes.