They’ve been labelled the Reddit army. A loose collection of retail investors linked through social media apps like WallStreetBets. And in recent weeks they’ve shown just how much money and influence their united front can bring to bear in global share markets.

The targets have largely been institutional short sellers. Hedge funds who take positions against a company’s shares. Meaning they make money when the share price goes down… and lose money when the share price goes up.

If the share price goes up a lot, short sellers are often forced to cover their positions. That can see them buying back the shares they borrowed and sold, creating even more demand for the shares and driving the price even higher. You’ll hear this called a short squeeze.

While much of the action has centred on US markets – think GameStop Corp (NYSE: GME) – the ASX-listed Unibail-Rodamco-Westfield (ASX: URW) share price has also been swept up in the Reddit army’s assault on short sellers.

How the Reddit army is driving the Unibail share price

The Unibail share price is falling hard today, down 5.6% in late morning trade. That compares to a 1.2% gain on the S&P/ASX 200 Index (ASX: XJO)

But the last 3 trading days were a very different story. Unibail’s share price gained 14.5% on Thursday, and by the closing bell yesterday it was up 18.5% from Wednesday’s closing price.

The impetus behind the sharp rally appears to lie largely with the Reddit army targeting short sellers of the retail chain, including US hedge fund D1 Capital.

According to the Australian Financial Review:

European market disclosures that require funds to reveal their short bets showed three D1 Capital entities had a collective 7.84 per cent short interest in URW’s Paris- and Amsterdam-listed shares.

Short-selling volumes increased by eight times the average daily volume on Friday to 1.8 million shares for the ASX-traded security.

A global scramble to cover, traders say, contributed to the share price spike.

Short sellers can and do make money at times. But the risk is high. While the most you can lose by going long on a stock (buying shares) is what you pay for it, the losses for short selling are theoretically unlimited.

Invest with care.

Unibail-Rodamco-Westfield company snapshot

Unibail is one of Europe’s largest commercial real estate companies, owning a portfolio of quality retail and office complexes. It has assets in Europe, the United Kingdom and the United States.

Unibail acquired Australian shopping centre operator Westfield Corporation, created by the split of Westfield Group, in 2018. This saw Unibail shares first listing on the ASX as Unibail-Rodamco-Westfield.

Over that past 12 months, the Unibail share price remains down 49%.

More reading

• ASX 200 up 0.9%: Credit Corp impresses, Afterpay jumps, bank shares rise
• Why Bubs, Huon, Temple & Webster, & Unibail-Rodamco-Westfield are dropping lower
• How Monday’s stock market silver squeeze fared
• Robinhood forced to raise another $2.4 billion despite limiting GameStop trades
• The moral of the GameStop story?

Motley Fool contributor Bernd Struben 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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The Huon Aquaculture Group Ltd (ASX: HUO) share price got hit by a shock profit downgrade as it was hit by a series of unfortunate events.

The HUO share price is like a fish out of water. It slumped 7.8% to $2.82 in late morning trade even as the S&P/ASX 200 Index (Index:^AXJO) jumped 1%.

The salmon farmer warned investors that its FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to take a big hit compared to last year when it turned in an EBITDA of $47.3 million.

Huon also said it expected to take an impairment charge for the year with its market cap trading below the book value of its assets.

Multiple factors drowning the HUO share price

Management didn’t quantify the damage but investors were left with no doubt these will be very material to the profitability of the group.

These were several things that went wrong for the HUO share price to cause this disappointing outcome.

The COVID-19 disruption is only but one factor, although the pandemic continues to be a major challenge for the company and industry.

International demand for salmon during the health crisis suffered and any pick-up in the domestic market wasn’t enough to offset the loss.

Poor timing contributed to supply glut

Then there was bad timing on Huon’s part. It increased production as demand fell away. The group increased net sales to 19,290 tonnes in 1HFY21 versus 13,321 tonnes it sold the same time last year.

The extra supply meant that Huon was selling more fish into the export market. Management said that 40% of total volume went into this lower-priced spot market that is struggling with excess supply.

Salmon prices are down around 40% in the six months ended December 2020 compared to the same period in 2019.

Margin squeeze

While domestic salmon prices are holding up, the average price Huon will receive for its product is tipped to fall by 15% to $11.40/HOG kg in the first half.

If these negatives weren’t enough to put investors off, higher freight costs and increase global production of salmon of between 0.5% and 2% in 2021 are also weighing on the stock.

Let’s not forget the resurging Australian dollar too. As the international salmon trade is priced in US dollars, a stronger Aussie means lower translated earnings for Huon.

Then there were the “accidents”. Huon lost a lot of fish from its farms from fires, tear in nets and criminal conduct.

Foolish takeaway

All these factors may not be so bad if there was light at the end of this long dark tunnel. Unfortunately, management couldn’t provide that either.

Conditions remain too volatile and uncertain for Huon to paint a brighter outlook. It looks like the HUO share price will be stuck in the sin bin for a while.

But the bad news doesn’t only taint Huon. The Tassal Group Limited (ASX: TGR) share price lost 2.5% to $3.34 at the time of writing.

Some of the currents that Huon is swimming against are likely felt by Tassal as well. This all leaves a bad tastes in investors’ mouths.

More reading

• Why Bubs, Huon, Temple & Webster, & Unibail-Rodamco-Westfield are dropping lower
• Why the Centuria (ASX:CIP) share price is gaining today
• These 2 ASX stocks jumped after a broker upgrade to “buy” today
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises, Worley dumped, Mesoblast rises

The post Huon (ASX:HUO) share price sinks on profit downgrade and write-downs appeared first on The Motley Fool Australia.

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The AMA Group Ltd (ASX: AMA) share price opened more than 2% higher today before dipping slightly to its current level of 64 cents.

The jump follows news that the company is seeking to recover $1 million from former chief executive Andy Hopkins who was sacked last week.

AMA Group focuses on the wholesale vehicle aftercare and accessories sector, including vehicle panel repair, vehicle protection products and accessories, automotive electrical and cable accessories, automotive component remanufacturing and workshop and performance products.

What’s been moving the AMA share price this week

Yesterday, the AMA share price dropped roughly 1.5% after the company announced the appointment of Carl Bizon as the group’s new chief executive officer. Mr Bizon will receive a base salary of $900,000.

When the board initially moved to terminate Andy Hopkins’ appointment last week, Mr Hopkins resigned. He maintains his position as a board director, despite AMA attempting to remove him.

AMA Group alleges that Mr Hopkins misused his corporate expense account. Following an internal investigation, the board believes that the Mr Hopkins accepted payments without board approval.

In the same release announcing the new CEO, AMA reiterated its demand that Mr Hopkins resign from the board. The announcement states:

Having resigned as Chief Executive Officer on 31 January 2021, and under the terms of Mr Hopkins’ employment contract, Mr Hopkins is required to immediately resign from the Board of the Company. The Board expects to receive notice of his resignation from the Board forthwith.

The third largest shareholder of AMA denies wrongdoing

Mr Hopkins is the third-biggest shareholder of AMA. As reported by The Australian, he denies any wrongdoing and claims that fellow director Simon Moore has it out for him.

Mr Moore owns a capital investment firm, Colinton Capital, that once sought $4 million in advisory fees from AMA. Mr Hopkins claims this unresolved issue is behind the board’s allegations and his dismissal.

Over the past two days, the company has announced two new substantial shareholders. The first was Commonwealth Bank of Australia (ASX: CBA) and the second CI Investments Inc.

With these holders now in possession of a voting power above 5%, they will both also have a future say in the direction pursued by the board to recoup the $1 million it believes it is owed from Mr Hopkins.

The AMA share price has crashed more than 30% over the past year.

More reading

• Here’s why the AMA (ASX:AMA) share price is crashing lower today

Motley Fool contributor Gretchen Kennedy 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.

The post AMA (ASX:AMA) share price rises as former CEO chased for $1 million appeared first on The Motley Fool Australia.

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The Centrepoint Alliance Limited (ASX: CAF) share price is soaring higher today, reaching a multi-year high. This comes after the company provided investors with a business update on the first-half of the 2021 financial year.

During morning trade, the financial advisory services company’s shares have risen to a 52-week high of 29.5 cents, up 31.1%.

What did Centrepoint Alliance announce?

The Centrepoint Alliance share price is on the run after reporting a robust first-half performance and resumption of dividend payments.

In its release, the company announced that favourable trading conditions has led it to achieve growth across its key segments.

For the period ending 31 December, earnings before interest, tax, depreciation and amortisation (EBITDA)came to $2.1 million. This reflected a significant improvement compared to the loss of $400,000 realised in H1 FY20.

The higher EBITDA result was attributed to positive growth across all its key segments. In particular, the company noted continued strength in adviser recruitment and fee revenue. Its funds under management and administration portfolio saw above-budget increases.

At the end of the calendar year, Centrepoint Alliance recorded a healthy cash balance of $14.7 million.

The board proposed a fully-franked dividend of 4 cents to be paid to eligible shareholders on 26 February. This represents a 1 cent ordinary interim dividend and a 3-cent special dividend due to the company’s outstanding performance. Centrepoint Alliance stated that it’s within the best interest of the company to return excess capital to its shareholders.

What did management say?

Centrepoint Alliance chair, Mr. Alan Fisher, commented on the unaudited results:

Centrepoint Alliance has continued to improve its operating performance and is now well positioned to participate in industry consolidation and seek new strategic opportunities.

This financial year is about capitalising on the work conducted through our Strategic Refresh over the last two and a half years to establish a scalable, recurring revenue business model.

We have continued to focus on organic growth and refining our cost base, as is evident in the first half operating results. We are now actively pursuing opportunities to unlock the value of the business that can be achieved through scale.

Centrepoint Alliance share price summary

Over the past 12 months, Centrepoint Alliance share price gone from strength to strength, jumping more than 130%.

The company’s shares hit a low of 8 cents in May, before storming higher to reach a multi-year high today.

Based on the current share price, Centrepoint Alliance has a market capitalisation of around $42 million.

More reading

• AMA (ASX:AMA) share price rises as former CEO chased for $1 million
• Why Afterpay, Credit Corp, Healius, & Volpara shares are storming higher
• GameStop-style uprisings happened a 100 years ago too
• ASX 200 up 0.9%: Credit Corp impresses, Afterpay jumps, bank shares rise
• 2 little known ASX growth shares to buy

Motley Fool contributor Aaron Teboneras 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.

The post Why the Centrepoint Alliance (ASX:CAF) share price is soaring 31% higher appeared first on The Motley Fool Australia.

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is following the lead of US markets and charging higher. At the time of writing, the benchmark index is up a sizeable 1.1% to 6,738.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why these shares are storming higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 6% to $144.25. Afterpay and other popular tech shares are racing higher today after a particularly strong night of trade on Wall Street on Monday. The tech-focused Nasdaq index was a very strong performer, rising a sizeable 2.55%. The S&P/ASX All Technology Index (ASX: XTX) has followed its lead and is up 2.75% this afternoon.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is up 5% to $30.87. Investors have been buying the debt collector’s shares following the release of its half year results. For the six months ending 31 December, Credit Corp posted a 2% decline in revenue to $188 million and a 10% lift in net profit after tax to $42.3 million. The latter came in ahead of the market’s expectations. Credit Corp also lifted its guidance for the full year.

Healius Ltd (ASX: HLS)

The Healius share price has jumped 7% to $4.19. The catalyst for this was a broker note out of UBS this morning. According to the note, the broker has upgraded the healthcare company’s shares to a buy rating with a $4.40 price target. It believes Healius is well-placed to benefit from strong demand for diagnostic services.

Volpara Health Technologies Ltd (ASX: VHT)

The Volpara share price has surged 5% higher to $1.56. Investors have been buying Volpara’s shares following the announcement of the acquisition of CRA Health for US$18 million. CRA Health is a breast cancer risk assessment company. Its cloud-based software is tightly integrated into major electronic health record (EHR) systems and receives patient information, including breast density, and returns the risk of breast cancer alongside appropriate recommendations.

More reading

• ASX 200 up 0.9%: Credit Corp impresses, Afterpay jumps, bank shares rise
• 2 little known ASX growth shares to buy
• These 2 ASX stocks jumped after a broker upgrade to “buy” today
• Why the Credit Corp (ASX:CCP) share price is surging 10% higher
• Here’s why the Volpara (ASX:VHT) share price is surging 5% higher

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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The GameStop Corp (NYSE: GME) debacle has been depicted as a modern-day phenomenon enabled by social media and $0-fee trading platforms.

While technology definitely played a part, it’s certainly not the first time everyday people feverishly punting on the share market has ruffled the feathers of professionals.

University of Tasmania lecturer Robbie Moore pointed out Tuesday that a big fad more than 100 years ago in the US were venues called “bucket shops”.

These were places where ordinary folks could bet on the price movements of particular shares, without actually directly purchasing real shares.

It was a TAB for the stock market, if you will.

“Bucket shops were immensely popular,” Moore told The Conversation.

“By 1889, the volume of shares wagered in bucket shops was 7 times larger than the volume of shares traded on the New York Stock Exchange. Bucket shops drew many more Americans – including women – into the thrill-ride of speculation.”

And just like Robinhood and the GameStop saga, bucket shops were seen as a “democratisation” of a financial system that was even more inaccessible in those days.

The venues were popular with women, who still had immense barriers to directly participating in male-dominated financial markets.

And the shops also allowed middle-class men a peek into a world that only wealthy folks enjoyed at the time.

Finance industry gets defensive

Bucket shops were decorated to look like private men’s clubs, which the real stock market participants socialised in.

“Increasingly backed by big money and arranged in national chains, their interiors were often fitted with plush furniture and seductive technologies such as stock tickers and telephones,” said Moore.

“This mimicry threatened the legitimacy of stock speculation.”

This compelled professional share investors to label them as gambling dens – illegitimate and dangerous punting.

The same condescending tone has also been taken by current professionals to label the Reddit investors who triggered the GameStop frenzy.

“Writing on GameStop for the Washington Post, Sebastian Mallaby made the distinction between ‘rational investors’ who work to stabilise the market and keep prices realistic and ‘honest’, and the ‘crazies’ whose frenzied activity creates irrational prices,” said Moore.

“We saw similar language used by the finance industry of a century ago, asserting the superior masculine equipoise and rationality of trained financial professionals compared to the ‘hysteria’ of bucket shop amateurs.”

Axa SA (EPA: CS) core investments chief investment officer Chris Iggo said the GameStop crowd should be taken seriously.

“There is a temptation to be dismissive of the sort of ‘casino capitalism’ on show on Wall Street at the moment,” he said.

“However, there is a risk, albeit small at this stage, of today’s side-show having more meaningful implications for markets ahead.”

Activism investors and hedge funds have much in common

Moore said that both the activist Reddit investors and the professional fund managers are “invested in myth making” and “false dichotomies”, such as Robinhood vs The Man and the Rational vs the Rabble.

“But it is clear that both sides are more similar and more entangled than they would care to admit. This poses difficult questions for the finance industry as it tries to shut out the rabble while maintaining the status quo.”

Much like the criticisms of Robinhood’s gamified nature, early last century the finance industry criticised the use of telegraph stock tickers in bucket shops.

“Tickers transmitted stock information over telegraph lines, and were available for anyone to purchase,” said Moore.

“One pro-Wall Street journalist described the ticker as a ‘narcotic’, while a doctor writing for the Medical Times described the illness of ‘tickeritis’.”

But professionals also used these machines. Of course, the finance industry argued qualified tape readers were cool and rational.

“The Tape Reader is like a Pullman coach, which travels smoothly and steadily along the roadbed of the tape, acquiring direction and speed from the market engine, and being influenced by nothing whatever,” reads the 1910 book Studies in Tape Reading.

Iggo said the amount of retail money flying around the markets due to low interest rates, plus the retail activism, would scare off professional short investors.

This would naturally reduce the opportunities for future short squeezes, although the public consciousness of them could have a profound impact.

“The more the media focuses on it, the more the idea that the whole market is in a bubble takes hold,” he said.

“The psychological impact could drive investors to take profits on their equity portfolios or hold back cash in case there is a market correction.”

More reading

• Why these ASX silver shares are surging today
• 53% share price jump lands GME Resources (ASX: GME) in trading halt
• Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today

Motley Fool contributor Tony Yoo 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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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to deliver another strong gain. The benchmark index is currently up 0.9% to 6,725.2 points.

Here’s what is happening on the market today:

Credit Corp impresses

The Credit Corp Group Limited (ASX: CCP) share price is surging higher today after the release of its half year results. For the period ending 31 December, Credit Corp delivered revenue of $188 million and a net profit after tax of $42.3 million. This represents a 2% decline and a 10% jump over the prior corresponding period. The latter has outperformed the expectations of analysts at Morgans. They were forecasting a 2.5% increase in net profit. Credit Corp also lifted its guidance for the full year.

Tech shares jump

The Australian tech sector has followed the lead of its U.S. counterpart by charging notably higher on Tuesday. Overnight, the tech-focused Nasdaq index jumped a sizeable 2.55%. Back on home soil, strong gains by the likes of Afterpay Ltd (ASX: APT) and WiseTech Global Ltd (ASX: WTC) have helped take the S&P/ASX All Technology Index (ASX: XTX) 2.6% higher today.

Bank shares rise

The big four banks are all pushing higher and helping drive the ASX 200’s recovery. While all the banks are making solid gains, the best performer in the group has been the Commonwealth Bank of Australia (ASX: CBA) share price. The shares of Australia’s largest bank are up a sizeable 1.6% at the time of writing.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Credit Corp share price. The debt collector’s shares are up 6% following its stronger than expected half year results. The worst performer is the Unibail-Rodamco-Westfield CDI (ASX: URW) share price with a 7% decline. This decline appears to have been driven by profit taking after a short squeeze initiated by traders from Reddit drove its shares notably higher over the last few days.

More reading

• Why Bubs, Huon, Temple & Webster, & Unibail-Rodamco-Westfield are dropping lower
• Why the Credit Corp (ASX:CCP) share price is surging 10% higher
• The WiseTech (ASX:WTC) share price is trading near 52-week highs
• 5 things to watch on the ASX 200 on Tuesday
• GameStop chaos: Love always wins over shorting

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and WiseTech Global. 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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There are some little known ASX growth shares that some investors may be interested in.

Smaller businesses may have more growth potential than larger businesses.

Here are two contenders:

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX healthcare software business involved in screening for breast cancer.

The company recently announced its quarterly update for the three months to 31 December 2020.

It said that its annual recurring revenue rose by 20% to NZ$20.7 million (US$13.5 million), driven by increasing demand for the Volpara breast health platform. It received quarterly cash receipts of NZ$4.6 million despite COVID-19 and the weak US dollar.

Average revenue per user (ARPU) increased by 5% to US$1.22. Client retention remains high and its coverage of US women is approximately 27%.

That quarter was the first time that the ASX growth share received a payment from the partnership with a genetics company. Volpara said that its ability to identify women at high cancer risk who should have genetics testing has the potential to be a potential game-changer and significantly increase the ARPU. Volpara said at the time of this quarterly announcement that its focus will be on ramping up those genetics relationships and connections as quickly as possible.

It didn’t waste any time. Today, the company announced an acquisition that would give it more access to those genetics companies.

Volpara is acquiring CRA Health, which is based in Boston, for US$18 million. CRA’s software is integrated with the major electronic health record (EHR) and genetics companies.

CRA receives patient information, including breast density, and returns the risk of breast cancer alongside appropriate recommendations, including whether additional imaging or genetics testing is advised and reimbursed according to established guidelines. CRA also has electronic interfaces built with all the major genetics companies.

Volpara said that CRA is profitable, with annual recurring revenue (ARR) of over US$4 million, average revenue per user (ARPU) of US$1.70 and coverage of around 6% of US breast screenings.

After this acquisition, Volpara will have ARR of around $US$17.5 million and at least one product in use in over 30% of US breast screenings. Group ARPU will increase to over US$1.40.

City Chic Collective Ltd (ASX: CCX)

City Chic is an ASX growth share in the retail space. Its niche is plus-size apparel, accessories and footwear.

The company is growing swiftly, through a mix of both organic growth and acquisitions. In FY20 sales rose 31%, with year on year sales growth for ANZ online of 20%. Online sales made up 65% of total sales for the year. At 31 October 2020, it had risen to 70%.

The company is steadily growing its percentage of sales coming from the northern hemisphere, which has a much bigger total addressable market. At 30 June 2020, the northern hemisphere represented 42% of sales, up from 20% in FY19, with the US comprising the majority of sales. The company expects this trend of northern hemisphere sales growth to continue.

The ASX growth share recently announced the acquisition of Evans in the UK for US$41 million.

City Chic has bought Evans’ e-commerce and wholesale businesses, not the physical store portfolio. Those purchased assets made £26 million of combined sales for the year to August 2020. The Evans business made £60 million of annual sales prior to COVID-19.

Fund manager Clime Capital Ltd (ASX: CAM) said that the Evans purchase was made for around 5x the earnings before interest and tax (EBIT) that it was buying.

Clime thinks that the ASX growth share can command superior margins due to its vertically integrated structure. The fund manager said it’s well positioned to execute on its strategy and, despite the recent share price rally, it still sees an opportunity in the stock.

More reading

• Here’s why the Volpara (ASX:VHT) share price is surging 5% higher
• Fundie names 3 great ASX shares to own
• The ASX small cap with the best global expansion potential may not be tech
• Brokers think these 3 top ASX shares are buys in February 2021
• Here’s why the Volpara (ASX:VHT) share price is edging higher

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The stock market rebounded sharply on Monday, bouncing back from losses at the end of last week. As of just after 1 p.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 240 points to 30,223. The S&P 500 (SNPINDEX: ^GSPC) gained 60 points to 3,774, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) outpaced them all with a massive 322-point gain to 13,394.

The attention on Wall Street remains squarely on the efforts of the groups of individual investors spearheading the big moves in short-sold stocks, like GameStop (NYSE: GME). Over the weekend, those investors targeted the silver market, and they were largely successful in pushing prices higher. Yet the gains that investors are seeing from these silver-squeeze candidates aren’t nearly as large as the moves in GameStop and other stocks were.

A somewhat muted response

Silver had a solid rally on Monday. As of early afternoon, spot silver prices climbed about $1.75 per ounce to roughly $28.75. That was its highest level in six months, but it was considerably below the eight-year high that the white metal had seen overnight before New York markets opened for trading.

Investors also saw solid gains in silver-related stocks. The iShares Silver Trust (NYSEMKT: SLV), which holds silver bullion and acts as a market-traded proxy for silver prices, was higher by nearly 9% by early afternoon on Monday. The similar Sprott Physical Silver Trust (NYSEMKT: PSLV) climbed 8%.

Silver mining stocks were where most of the biggest gains were found. First Majestic Silver (NYSE: AG) picked up 22%, while Endeavour Silver (NYSE: EXK) was higher by 19%, and Silvercorp Metals (NYSE: SVM) gained 18%.

Yet even those larger moves among silver stocks didn’t match up to the massive gains that GameStop saw last week. Fivefold gains don’t appear to be in the cards for these silver-squeeze candidates, at least not immediately.

Are short squeezers losing their focus?

Successful investors often find that it’s difficult to duplicate winning performance a second time. It’s understandable that a big win on GameStop has emboldened individual investors, but they’ll have to keep to the same playbook to avoid making mistakes in the future.

The silver market does have some appeal from a structural standpoint, as trading activity in the silver market dwarfs the actual production of the semi-precious metal. Silver market commentators have warned of supply-deficit conditions for a long time, which would potentially make it more vulnerable to such efforts.

What short squeezers need, though, is a firm target, and that’s not readily apparent in the silver market. Concentrating on iShares Silver Trust has its own problems, but with so many silver miners, it’s hard to pick a single company on which to focus efforts. Therefore, even investors who want to participate don’t know exactly what to do.

Moreover, some individual investors disagree with picking silver as the next GameStop. They note that some major Wall Street institutions stand to benefit from higher silver prices, which seems to go against their stated goals.

See what comes next

It took a while for GameStop to make a big move higher, and it’s premature to say that silver’s rise will immediately come to an end. The folks pushing the silver squeeze need to get more organized about what they’re trying to do and how they’ll successfully go about doing it.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Robinhood forced to raise another $2.4 billion despite limiting GameStop trades
• The moral of the GameStop story?
• GameStop chaos: Love always wins over shorting
• Silver squeeze next on the list for WallStreetBets, or is it?
• The worst mistake GameStop investors can make right now

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.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The post How Monday’s stock market silver squeeze fared appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to continue its recovery with another solid gain. The benchmark index is currently up 0.9% to 6,723.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price has continued its slide and is down a further 5.5% to 67 cents. Investors have been selling the goat milk infant formula company’s shares after its second quarter update fell short of expectations last week. While Bubs’ performance has improved since the first quarter, its latest update was still weaker than the market was forecasting. Its sales came in softer and its costs were higher than expected.

Huon Aquaculture Group Ltd (ASX: HUO)

The Huon share price has crashed 9% lower to $2.79 following the release of a trading update. That update revealed that challenging market conditions as a result of COVID-19 have persisted throughout the first half in both the domestic and international markets for salmon. While its sales volumes were on target for the period, the price of salmon has softened notably. Management also warned that prices are unlikely to recover over the coming months.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has sunk 5% lower to $10.51. This follows the release of the online furniture and homewares retailer’s half year update this morning. For the six months ended December 31, Temple & Webster delivered a 118% increase in revenue over the prior corresponding period to $161.6 million. Thanks to operating leverage, EBITDA jumped a massive 556% to $14.8 million. While this was undoubtedly strong, it still fell short of Goldman Sachs’ estimate of revenue of $171.1 million and EBITDA of $17.6 million for the half.

Unibail-Rodamco-Westfield CDI (ASX: URW)

The Unibail-Rodamco-Westfield share price is down almost 7% to $5.14. This decline appears to have been driven by profit taking after a strong rise in recent trading sessions. That rise was driven by a short squeeze initiated by traders from Reddit.

More reading

• Why the Temple & Webster (ASX:TPW) share price is sinking 5% lower today
• 2 small cap ASX shares that are growing quickly
• Why Afterpay, ResMed, Temple & Webster, & Worley shares are dropping lower
• Top ASX shares to buy in February 2021
• ASX 200 Weekly Wrap: Reality (and GameStop) finally hits ASX

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Bubs, Huon, Temple & Webster, & Unibail-Rodamco-Westfield are dropping lower appeared first on The Motley Fool Australia.

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