Chicken Soup for the Soul (NASDAQ:CSSE) stock is rising higher on Wednesday alongside heavy pre-market trading of the entertainment company’s shares.
This has more than 17 million shares of CSSE stock changing hands as of this writing. That’s a massive leap over Chicken Soup for the Soul’s daily average trading volume of about 264,000 shares.
Investors will note that this huge increase in trading volume comes without any news from the company. That includes a lack of press releases or filings with the Securities and Exchange Commission (SEC). There also isn’t any analyst coverage that would cause the rally today.
What is worth noting is Chicken Soup for the Soul’s status as a penny stock. That comes from its prior closing price of 15 cents per share and its market capitalization of only $4.933 million.
What That Means for CSSE Stock
CSSE’s status as a penny stock has some disadvantages for the company. One is that it is more easily manipulated by traders who pump and dump its shares.
Considering the heavy movement and lack of news, this could be what’s happening to CSSE stock today. If so, investors will want to be wary about taking a stake in the company right now.
CSSE stock is up 83.5% as of Wednesday morning.
Investors looking for more of the most recent stock market stories are going to want to stick around!
We have all of the hottest stock market news that traders need to know about on Wednesday! That includes the biggest pre-market stock movers this morning, the latest news concerning Fisker (OTCMKTS:FSRN) shares and more. All of this news is available at the following links!
More Wednesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
- Fisker Stock Alert: Fisker Is Prepping for Bankruptcy With 30-Day Countdown
- MULN Stock Alert: Mullen Hits New Battery Pack Milestone
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, William White 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.
