Shares in RTI Surgical (NASDAQ: SRGA), also known as Surgalign Holdings, are on the rise today as retail investors take aim at this beleaguered medical devices company.
Shares soared over 10% at market open as retail investors piled into the stock. With murmurs on forums such as Reddit and Twitter. So what’s all the fuss about?
How much is RTI Surgical worth?
The microcap company is worth just under $160 million as of market open on Thursday, August 19, with shares trading at penny prices of $1.22 apiece. However, it is not a new company, having originally gone public over 20 years ago in August 2000.
The firm has seen its stock price plummet more than 91% in that time, and from an all-time high of $16.79 per share in September 2003. This is not a stock that’s doing well.
Why are investors interested in SRGA stock?
Because every now and then retail traders on Reddit or fintwit find a ‘cheap’ stock to pump and subsequently dump, not unlike the infamous GameStop and AMC short-squeeze from earlier this year.
There are no fundamentals or bull cases behind this behavior, it’s simply an attempt to make money quick, which is a very risky tactic for stock that usually ends with retail investors losing a lot of money.
Should I invest in SRGA stock?
No. Pump and dump schemes are very risky for investors and go completely against the buy-and-hold ethos we practice here at MyWallSt.
Ignore this stock if you have never heard of it, everyone else will soon enough anyway.
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Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.