SGOCO (SGOC) Stock Continues For The Top

SGOCO Group, Ltd. (NASDAQ: SGOC) is making yet another move for the top, following up in the tremendous gains seen out of the stock on Friday. However, as was the case on Friday, the company hasn’t issued any news, leading many to wonder why the stock is running for the top. Here’s what’s going on:

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SGOC Continues Skyward

While there has been no recent news out of SGOCO Group, one thing we’ve learned throughout 2021 is that news doesn’t have to exist to drive significant movement in the value of stocks as retail investors take control on Wall Street. 

Since the beginning of the year, large groups of retail investors have been banding together to buy shares of stocks that are heavily shorted by hedge funds. In doing so, these retail investors are hoping to push short squeezes, resulting in tremendous short term runs. 

That seems to be exactly what’s going on with SGOC stock. 

Recently, social network message volume surrounding the stock has been flying through the roof. At the same time, before Friday’s dramatic run for the top, the stock had been a short target for hedge funds for quite some time. 

With the retail investing community seeing blood in the water, the masses decided to strike, sending the stock for a more than 200% gain Friday and a more than 30% gain early today. 

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Final Thoughts

Short squeezes are highly volatile and very difficult to predict. So, if you’re wondering if there’s still room for the stock to fly, your guess is as good as mine. However, one thing I do know is that the market seems to be changing, and moves like what we’re seeing out of SGOC are becoming the norm. 

As retail investors continue to push back on hedge fund manipulation in the stock market, more and more opportunities are arising in places that the traditional investor would never think to look. 

While there’s no telling if SGOC stock will continue to rise from here, there’s one thing I can say for certainty. Retail investors are likely to continue finding and exploiting these opportunities, making 2021 the year of the short squeeze. 

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