The GME Resources Ltd (ASX: GME) share price is once again shooting through the roof, after lifting yesterday on no news.
We reported at the time on the GameStop Corp (NYSE: GME) short squeeze phenomenon that has led the US company’s shares returning over 100X in the last year. Yesterday it looked like our Aussie GME counterpart might have experienced a case of mistaken identity, with both companies sharing the GME ticker code.
GME share price isn’t going anywhere
Today GME Resources shares have been halted, as the mineral explorer prepares to release an announcement regarding a price query. This is likely a ‘please explain’ from the ASX due to the rapid 53% increase on no news.
Ironically, this GME Resources even more similar to GameStop, as the US company experienced its own volatility-induced trading halt last night. Reportedly, GameStop triggered the NASDAQ’s code M, a volatility trading pause in regard to an exchange-listed issue. However, GameStop was trading again within minutes.
Brokers taking action
The madness that has been unfolding over the last week in the GameStop share price has led to hedge funds losing billions of dollars as they scramble to unwind short positions. With the collectivism showing no signs of slowing down, some brokers including Robinhood and Interactive Brokers, have put in place restrictions for trading GameStop. Reportedly, users of the platforms are now only able to close positions and not take on new ones.
It will be interesting to see if any restrictions are imposed on ASX-listed companies. Although, ASX-listed companies tend to have much lower short interest, which makes them less likely for a short squeeze target.
What about the ASX GME share price?
Currently, GME Resources remains in a trading halt. The company will likely submit an explanation to the ASX as to why the shares have skyrocketed. From there, the next step is unknown. It will be in the hands of the ASX as to whether they allow GME Resources to resume trading today.
It certainly is an interesting time to be in the stock market!
GME Resources share price snapshot
Including today’s dramatic jump in share price, the GME Resources share price has now returned 133% in the last year. The company’s market capitalisation now tops $72 million.
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More reading
- What Is a Gamma Squeeze?
- Short squeezes: Everything you need to know about the recent investing movement
- GameStop trading ought to be halted for 30 days, one regulator says
- Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today
- Here’s why GameStop stock skyrocketed more than 100% on Wednesday — and why it could be on the verge of collapse
Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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