The stock market is having a nice rally today following the S&P 500’s bounce off of its 50-day moving average that started last week. We are also seeing a good rally in large cap mining stocks with the GDX ETF up over 3% today. One interesting move is happening in Giga Metals Corp (OTCMKTS: HNCKF), which is up 7.62% going into noon at this moment. What is noteworthy is that at the 11:00 AM hour this stock has had more individual trades than any other stocks on the US OTC exchange, with 6,375 trades executed. The stock also trades on the Canadian Venture Exchange under the symbol GIGA. Take a look at the chart.
Giga Metals is involved in the exploration of nickel and colbat with the goal of advancing properties it has the rights to mine into production. These metals have been linked in the minds of many stock traders to the trend of electric vehicle stocks. Traders who have been captivated by the price action in stocks such as TSLA have looked for other companies that could benefit from the construction of electric vehicles and as you can see this stock has had a big move starting last week.
In fact the company had to comment on Friday’s trading action. A company press release reads: “Giga Metals has been mentioned in recent media articles as they pertain to ongoing efforts to advance the Turnagain deposit to commercialization,” said Martin Vydra, President. “What I can say is that there is no material announcement forthcoming and we will keep regulators and investors informed of any material changes that require disclosure in accordance with securities regulations.”
The action is getting the attention of many on twitter:
$GIGA massive 185% gain on the day. Even though the company squashed the telas rumor first thing this morning the market still drove it up. Will be interesting to watch it next week as these types of pops don't normally end well for retail. pic.twitter.com/YeqMAimb5p— CndStock Trader (@CndStockTrader) September 11, 2020
I have no position in this stock and am not going to trade it. The stock has already gone up so much that it now has a market cap of over $70 million USD. However, what it shows is that interest is finally starting to come to small cap mining and exploration stocks on the US OTC and among American traders on Twitter. When a stock like this gets more individual trades than any other on the US OTC that is noteworthy. This is a promising sign for the sector as a whole and bodes well for my own top stock pick for this month. If you are new to my work then you need to get on my free email update list to get my morning pre-market alerts. Just click here to subscribe.