A tiny Western Australian mining company is embroiled in the investment craze surrounding the US company GameStop thanks to its ASX code, which is the same as that of the US company GameStop American video game retailer

Listed on the local stock exchange with a market capitalization of just $ 40 million, GME Resources is a mining company focused on the extraction of nickel and cobalt on Thursday, its shares rose more than 50 percent to 12 Cent, the highest level since 2018, with a volume of nearly $ 7 million

A local company that shares an ASX ticker with US retailer Gamestop saw its shares rise 50 percentCredit: Bloomberg

However, the skyrocketing price had nothing to do with business Quarterly update published the rising price of nickel last Friday.Instead, local participants in stock trading groups on Reddit and Facebook had bought the stock as a joke due to the similarity of the ticker to the popular US stock GameStop

Shares in overseas video game retailers soared over 1,500 percent to nearly $ 350 ($ 460) last month, thanks to day traders on Reddit’s Wallstreetbets forum who continued to short the stock and other heavily of corporations are seeking revenge on large US hedge funds

That craze has permeated investment groups in Australia, and traders on the local Reddit forum ASXBets are showing obvious purchases of thousands of stocks in the locally-listed GME

James Sullivan, chief executive officer of GME, told The Age and The Sydney Morning Herald he was stunned after waking up when the company’s share price rose over 50 percent

â ???? When I opened my Share Tracking app and saw that it was 9.4 cents, I was stunned, â ???? he said, â € œIt just popped, and I thought, â € œWell, what’s going on here? â € ² Is there something about my own company that I am not doing? knowledge? â ????

Mr Sullivan, who has been with GME for more than 15 years and has never walked into a GameStop store, said company management immediately started texting each other to investigate the reason for the spike

“There were emails and text messages from people flying around, and finally my brother’s son, who works in Sydney, told us it was GME speculation”??? he said

â ???? I was hoping to say it had more to do with our world class nickel projectsâ ????

GME shares ended the day at 8.55 cents, 133 percent higher than the opening price. Mr. Sullivan believes the company may receive an “please explain” from the ASX but says he “might not be unhappy” ???? about the unexpected interest in his company

ASXBets users expressed equal parts confusion and excitement over the stock’s powerful surge, with one simply saying, “Free Money Boys”

GME is majority owned by international fund manager ICM, and Mr. Sullivan and his brother Peter are also significant shareholders, each owning approximately 6 percent of the business

The chief executive said the surge is an example of the power of numbers and hopes the renewed interest could result in a higher share price for the company even after GameStop’s fueled attention

“It may mean we’re finding a new level based on our nickel assets anyway, which I would love to talk about”â ????

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World news – AU – “Stunned”: The GameStop trading frenzy causes the shares of local mining companies to rise

Source: https://www.smh.com.au/business/companies/stunned-gamestop-trading-frenzy-causes-local-mining-company-shares-to-soar-20210128-p56xh4.html