Here’s why penny stocks like GGE, NEXI, ALT, HCDI are pumping

December 01, 2023 07:59 AM PST | By Invezz
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Penny stocks like Green Giant (GGE), Neximmune (NEXI), Altimmune (ALT), and Harbor Custom Development (HCDI) were among the best-performing companies in Wall Street on Friday. All of them jumped by more than 40% even as the Nasdaq 100 and S&P 500 indices pulled back. 

These companies have not made any headlines on Friday, making their surge quite difficult to explain. As I wrote in my article on ShiftPixy (PIXY), these penny stocks are rising because they are being pumped by social media users. A closer look shows that they are all trending in key social media platforms like StockTwits and Reddit. 

Penny stocks and meme companies like GameStop, AMC, and Genius Group have been quite popular in the past few weeks. Their popularity increased after the US published encouraging consumer inflation data in November. The data revealed that the country’s inflation dropped to 3.2% in October.

Another key denominator of these companies is how small they are. Green Giant, a Chinese real estate developer, has a market cap of over $10.2 million. It is a loss-making company that lost over $108 million in the last financial year.

Similarly, Harbor Custom Development, is a real estate company valued at over $3.98 million. It is also a cash incinerator that made a total loss of over $19.6 million in the last financial year.

Neximmune (NEXI), on the other hand, is a clinical biotech company that is building products to treat leukemia and myeloma. It has a market cap of over $2.6 million and its losses jumped from $50.9 million in 2021 to $62.5 million. Nexi stock price was halted after its stock surged by over 300%.

The only penny stock that had a catalyst was Altimmune, which jumped by over 51%. The company’s shares surged after a report by JMP hailed the company for its weight loss drug. In a note, the analysts said:

“Pemvidutide has a competitive profile based on the top-line MOMENTUM data with greater weight loss than semaglutide, better lipid changes and tolerability than tirzepatide, and better cardiac safety than retatrutide.”

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