The current market momentum is so strong that we see double-digits jumps on stocks that are not poised for growth nor representing great potentials in near future. To understand the extremes better, let’s have a look at few specific cases.
The car rental company Hertz has filed for bankruptcy on May 22th. After shares dropped dramatically with the news, it jumped from $0.56c on May 26th to $5.53 on June 8th, a staggering 10x price increase in less than two weeks.
A similar company on the brink of the default is Chesapeake Energy Corp. The energy exploration company just announced their plan for bankruptcy filing at yesterday after market closure. However, what was more surprising is that the stock price jumped 400% in two days prior to that.
Other names such as Luckin Coffee, J.C. Penney, American Airlines, Carnival Corporation, Delta Airlines, Nikola Corporation are just some other names