T2 Biosystems (NASDAQ: TTOO) stocks is up 46% this morning. TTOO stock has had some odd rises recently, it has looked as if it might be becoming a meme stock. Or at least an attempt at one. At least one stock-picking site has been warning folk off it as a result.
In fact, we’ve intimated much the same ourselves about T2 Biosystems: “Yes, we know. Just the idea that meme stock speculators are looking at T2 Biosciences does make it an interesting speculation for ourselves. But we’ve got to be both careful and clear here. Careful, in that unless we know what the buying - what has sparked it off? - we’ll not be able to work out when it will stop and the price reverse. We also need to be clear. There’s nothing wrong with leaping aboard a meme stock rally. As long as we know that’s what we’re doing. This is not investment, this is betting. This is not something done with the 401 k but as an alternative to - and with about the same amount of money as - going to the ball game. Betting and speculation are not investing - so don’t get them confused.”
We also looked before at TTOO: “Which is what T2 Biosystems now has: “T2 Biosystems (NASDAQ:TTOO) has received breakthrough device status from the US Food and Drug Administration for its Candida auris molecular diagnostic blood test. The test is designed to detect C. auris, a multi-drug resistant fungal pathogen, in three to five hours, without the need to wait days for a blood culture, T2 Biosystems said.” Breakthrough status makes the process of authorisation much simpler - it’ll happen in something less than geologic time.”
That does indeed aid.
T2 Biosystems stock price from Google Finance
And now we’ve this latest news: “T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid detection of sepsis-causing pathogens, announced today that it issued inducement awards to four new employees. The awards were made on September 7, 2023, under the T2 Biosystems’ Inducement Award Plan (the "Inducement Plan"), which was adopted on March 1, 2018 and amended and restated on February 16, 2023 and provides for the granting of equity awards to new employees of T2 Biosystems. The inducement awards consist of three option grant awards to purchase an aggregate of 1,200 shares of T2 Biosystems common stock and one grant of restricted stock units ("RSUs") covering 40,000 shares of the Company’s common stock granted to the Company’s Vice President of Regulatory Affairs, Scott Blood.”
Ah, no, so we’ve a 46% rise in the stock price because the employee stock option plan has some new entrants? No, this is grasping at straws - or, the other way to put it, this is meme stock territory. This isn’t the sort of thing that should move a stock price - but it is moving the stock price. Therefore we should probably conclude that the stock price is not reacting entirely rationally to new information - that’s meme stock territory.
As above meme stocks are great fun but don’t confuse them with investing.
