MMAT - Buy NeuroMetrix Stock If You Enjoy a Sucker's Bet
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If not now, when? It’s a question would-be NeuroMetrix (NASDAQ:NURO) investors might be asking themselves. More aptly and as it relates to the performance of NURO stock, if not then, then or then, it’s likely fair warning to find another game that’s finished. Let me explain.
It’s a reasonable inquiry. That is, an investor being curious enough to wonder why a stock that’s enjoyed a huge commercial win isn’t front page news.
Shouldn’t CNBC and other financial news outlets pull themselves away from the latest breaking Apple (NASDAQ:AAPL) or Moderna (NASDAQ:MRNA) reports when the next big, big thing is here, today?
It’s reasonable to ask, right?
Maybe if it weren’t NURO stock, then possibly.
As this type of purported positive market disruption applies to NeuroMetrix’s NURO stock, the most important fact finding that deserves attention is why a measly $78 million company has given back about 65% of gains tied to news which had Redditors bullish apes up in arms?
Oh yeah, maybe that’s it.
The NURO Stock Story
NURO is guilty as charged and simply another meme stock.
If you’re unfamiliar with NURO stock, you’re not alone despite volume swelling toward half a billion shares and gains approaching 1,200% in less than three trading sessions in late July.
It’s also obvious you’re not a card-carrying member of today’s notorious ape population, which like it or not, have become a regular feature on Wall Street in 2021.
In a nutshell shares of NURO had “a moment” ape style late last month on word the company received “Breakthrough Device Designation” from the Food and Drug Administration (FDA) to help those afflicted with fibromyalgia. And I’m a monkey’s uncle, right? Not quite.
Short Interest Grows
More important, as good as the endorsement for NeuroMetrix’s Quell “neurostimulation” device appears a financial boon to NURO stakeholders, obviously it’s not such a big deal as to continue holding court with apes.
Moreover, it appears short-interest which played a hand, along with NURO’s low-float and thinly traded features, has only grown in the report’s aftermath.
According to Yahoo Finance, as of the end of July short interest in NURO stock stood at nearly 23%. Given it’s micro-cap valuation, that’s like wanting to squeeze juice out of a turnip. And honestly, that’s not good news.
So investors should turn their attention back toward real breaking news in AAPL stock or MRNA? Maybe. At a minimum though and as the price chart in NURO stock largely supports, don’t bother giving your attention, let alone your hard-earned dollars to NURO stock.
NURO Stock Daily Price Chart
Source: Charts by TradingView
It’s said hope springs eternal. In NURO stock hope has sprung a messy but common leak in optimism. It’s the kind of bearish price action we’ve seen time and time again in 2021 at the hands of fast-and-slower money Redditors.
Meta Materials (NASDAQ:MMAT). Newegg (NASDAQ:NEGG). Zomedica (NYSEARCA:ZOM). If misery loves company NURO bulls are far from alone. But is there the possibility NURO is different and a bargain?
As noted earlier, today and 15 days after striking multi-year highs, NeuroMetrix shares have given up around two-thirds of their brief gains.
With NURO also sporting an oversold stochastics and consolidating narrowly beneath its 62% Fibonacci level, some investors might be incentivized to make a purchase. Not me though. Not with a 10-foot pole. And hopefully not my readers.
Bottom line, they, them or rather the ape population appear to have tried three times along NURO stock’s decline to get the troops off the bench and back onto the playing pitch. And to this observer those unsuccessful swings warn the game is already over and one best to avoid.
On the date of publication, Chris Tyler does not hold (either directly or indirectly) positions in any securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
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