Today, LM Funding America (NASDAQ:LMFA) is seeing very impressive gains. In fact, LMFA stock is up nearly 50% at the time of writing on very heavy volume.
For this relatively small-cap stock with a market capitalization of only $31 million post-rally, such moves are perhaps more commonplace. However, this move indicates investors see something with this stock that they perhaps didn’t yesterday.
Indeed, today’s moves in new short squeeze plays have taken a number of stocks on a nice ride. For LMFA stock, it appears similar catalysts are at play. Why?
Well, LM Funding has a small float, and many retail investors have begun to flag short interest in this stock as a reason to jump aboard. Speculation appears to be enough to move mountains today. Accordingly, given the sentiment levels on social media with LMFA stock, it’s clear this is a company being targeted by retail traders today.
Let’s dive into what LM Funding does, and other reasons why investors may be getting excited about this stock.
What Investors Want to Know About LMFA Stock
- LM Funding was founded in 2008, during the most recent financial crisis.
- Since then, the company has been involved in more than 14,000 collection events.
- LM Funding’s business model provides financing to community associations, covering attorney fees for collection events.
- Additionally, the company takes on debt collection services.
- In so doing, associations are able to get their money quicker, with LM Funding making margin on each transaction.
- The company’s revenue has taken a hit, given the post-pandemic recovery of late. That said, LMFA stock did report positive net income this past quarter.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.