In the world of small-cap stocks, certain companies don’t get much attention at all. And over the past couple of years, many of the headlines for various penny stocks have been downright negative. That said, little-known Polished.com (NYSEMKT:POL) is certainly making headlines today for all the right reasons. Indeed, POL stock is surging more than 50% from yesterday’s close at the time of writing.
Importantly, this isn’t the first such move POL stock has made in recent weeks. In fact, on Dec. 20, the company released a statement acknowledging some curious trading activity with its stock. The company noted:
“In view of the unusual market activity in the Company’s stock, the New York Stock Exchange contacted the Company in accordance with the NYSE’s usual practice. The Company does not comment on market activity or rumors. However, the Company confirms that it is not aware of any undisclosed material change or development in its business and operations that would account for the recent increase in the share price and trading volume of the Company’s stock.”
In other words, there doesn’t appear to be any catalyst driving the move in this stock. However, it’s moving in a big way. Let’s dive into what investors may want to make of this move right now.
What’s Going on With POL Stock?
Unsurprisingly, today’s surge in Polished.com has come with very high trading volume. More than 17 million shares have traded hands at the time of writing. That’s versus an average daily volume of around 2.7 million shares. It’s unclear whether this number includes the previous Dec. 20 surge. In any case, this stock is moving on heavy volume relative to what would otherwise be considered a “normal” day.
It’s also unclear if large investors are buying this stock heavily or if algorithmic traders have jumped into the fray. That said, on high-momentum moves such as this, the stock is bound to get noticed. There are plenty of speculators out there looking to scalp a few percentage points here and there who are intrigued by this stock right now.
As an e-commerce player in the home furnishings and appliances segment, Polished.com is one of those companies with an eight-digit market capitalization that the average investor mostly overlooks. And as is the case with many of these high-volume moves in relatively low-float small-cap stocks, a reversion toward the mean will likely come at some point. Accordingly, this is a stock best suited for speculators right now.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
