The stock price for GME Resources Limited has soared amid speculation that investors are mistaking the the ASX-listed company for GameStop due to their shared ticker code — and the company’s director is bamboozled by the sudden spike.
Managing director Jamie Sullivan said he woke up this morning and saw that “all hell broke loose”
“I don’t really know anything about this,” he told Business Insider Australia. “It’s very hard to comment on, it’s like a bomb went off.”
The whole financial world has watched with fascination as Reddit day-traders have taken on short-sellers for the video game retail business GameStop.
Members of the r/WallStreetBets community have worked together to buy $GME stock and options, boosting the price of the shares more than 1200% in the last 2 weeks.
In Australia, some have begun to speculate on whether a similar run on shorted stocks could happen here and what they would be.
Meanwhile, others noticed that the little known mining company’s stock price had jumped upwards of 50% on Thursday morning — and they say it’s because people are confusing the stock for GameStop, or are anticipating some will do so.
C|T Group director and former Business Insider Australia editor Paul Colgan tweeted about the sudden spike.
“Little mining company on the ASX with the ticker $GME is up 33% today,” he tweeted. “Sigh.”
Little mining company on the ASX with the ticker $GME is up 33% today.
— Paul Colgan (@Colgo) January 27, 2021
Others saw the price shoot even higher.
Twitter user @formerhgpm posted a screenshot of a terminal showing GME Resources information with the caption “$GME on ASX was up 50% #bagholders”.
— Market “Buy everything” Capital (@formerhfpm) January 27, 2021
And while some social media users cautioned others against mistakenly purchasing the wrong stock lest they be stuck with shares they didn’t want — others saw an opportunity to capitalise.
Twitter user Nick Fabrio floated the idea yesterday of buying GME Resources.
“Do I buy $GME on the ASX purely based on ticker nearology? #galaxy brain #yes,” he tweeted.
GME Resource’s Sullivan said that he first found out that the company shared a code with GameStop when a shareholder texted him.
“I don’t know if the spike in price is to do with speculation about GameStop or something to do with our future plans,” he said.
“We’re starting drilling in a few weeks — but I don’t think that sort of announcement wouldn’t have launched this.”
— Nick Fabrio (@longhorncapital) January 26, 2021
At time of publication, GME Resources Limited is up 20% to AUD$0.090 from closing yesterday.
GME Resources has been contacted for comment.