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Meme Stock Criteria
To find a high-quality meme candidate, you need the following ingredients, in my opinion.
1) A small tradeable float
2) A low market cap.
3) Ability to trade on Robinhood
4) A low share price.
5) An Underdog or Romantic Story
6) Social Media Frenzy
Below I discuss a silver stock that I believe meets two-thirds of the benchmarks mentioned above.
Meme Stock Candidate
In my opinion, Nevada silver miner Hycroft Mining (HYMC) is one potential meme worth investigating.
Hycroft Mining History
The previous mine operator was Allied Nevada, which went bankrupt in 2015. Hycroft restructured and reemerged in 2019; prices dropped precipitously. The company is laying off workers and shutting down some operations. In all likelihood, they may go bankrupt (again). Prices have collapsed from $16.00 in 2020 to nearly $1.00.
The stock is an absolute disaster, but it holds 4 of the 6 meme ingredients (see below).
Meme Candidate Checklist
1) SMALL FLOAT: According to Yahoo, HYMC has total outstanding shares of 60 million. Of that 60-million, 85% is held by institutions. I believe those institutions are part of the Allied Nevada settlement and won’t be selling until they reach a profit (likely above $16.00). So, that leaves about 9-million shares available for trading, according to quick math.
Note- I don’t believe the Short % of Float of 245% is accurate.
2) MARKET CAP: With a market cap of just $63 million, there is plenty of room for 10X returns.
3) ROBINHOOD: Hycroft Mining trades on Robinhood under the ticker HYMC.
4) LOW PRICE: Currently, HYMC is trading at just above $1.00.
5) UNDERDOG STORY? On the story side, HYMC reportedly has the largest silver deposit in America. Silver was in the spotlight briefly after GameStop. Silver is not only a monetary metal: it is critical to the new economy (from solar to E.Vs).
With yesterday’s news, HYMC appears to be nearing life support (like AMC and GME). Perhaps this story will evolve into an underdog narrative? Or maybe not.
In my personal portfolio, I bought HYMC at around $3.50 earlier this year. I bought a few warrants Wednesday, and I bought some HYMC stock for the Gold Predict Metals Portfolio Thursday. Premium Members were alerted first.
Click here to view my recent article, Gold Price Forecast – Major Breakout Alert
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For regular updates, please visit here.
This article was originally posted on FX Empire