A new meme stock has taken a grip on some retail investors, motivating an impressive influx of transactions. Farmmi, Inc. (NASDAQ:FAMI) is the newest short squeeze play becoming the ire of short sellers. The small agricultural outfit is seeing its FAMI stock lift upward this morning, and meme traders are looking for more gains through the day.
Farmmi is a farming company based in Lishui, China. The company specializes in the cultivation of fungi, including products like shiitake and wood ear mushrooms. What’s so interesting about the Farmmi model is that it taps into the sales industry at many different levels. Farmmi offers an offline, brick-and-mortar shop experience in China, while also offering an e-commerce platform for sales and bulk factory and family farm contracts. It does this while emphasizing an efficient product-tracking technology to ensure quality.
The company operates largely in its home country, but it also exports products to the U.S., Canada, the Middle East and various countries throughout Asia.
Farmmi (FAMI) Stock Grows as Meme Traders Target Fungi
Meme traders are targeting Farmmi (FAMI) stock this morning with gusto; swarms of buyers are pushing the stock’s volume up fourfold from its daily average in the opening moments of trading.
Reddit investors last week began taking notice of FAMI after it posted several days of losses following an $81 million public offering. With share dilution making the price of FAMI pennies on the dollar, it had a very low buy-in. Last Friday, the saga got much more interesting, with short interest increasing nearly sixfold.
The huge upswing in short interest is apparently catalyzing mobilization of the meme-stock troops. In just the first hour of trading today, Farmmi (FAMI) stock is seeing over 123 million shares trading hands. This stands in stark contrast to the stock’s daily average volume of just 34.6 million. The trading influx was good enough to push FAMI up 10% in the immediate moments of trading; it has since cooled to a 5% gain.
On the date of publication, Brenden Rearick 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.