Suggestive stock tickers can create quite a stir especially in stock market discussion forums like Reddit’s r/wallstreetbets, where meme-driven talks often bring to life the most unlikely stocks for reasons that are not always conventional.
This time around, a former SPAC stock appears among the most discussed tickers on the main Reddit forums, which is the case of Archaea Energy which trades under LFG ticker.
However, apparently without specific reasons for the rise in popularity of such stocks, the main cuplirt is probably the ticker’s suggestive acronym. We bring you a deeper look at LFG stock.
(Read more from Wall Street Memes: GameStop Stock: NFT Could Revive Meme Mania in 2022)
Ethan Allen ($ETH) and Zoom Technologies ($ZOOM) cases
Stocks that have benefited indirectly just because of their ticker have already happened in the fairly recent past. This was the case with furniture company Ethan Allen, which trades on the ticker (ETH) – Get Ethan Allen Interiors Inc. Report, which was confused by several investors with the cryptocurrency Etherium, and which caused the share price to skyrocket more than five times from its initial value in 2021.
Another fun fact is what happened to the shares of the Chinese micro-cap Zoom Technologies, which trades under the ticker (ZOOM) , when it was confused with the giant video company Zoom Video Communications, which trades under the ticker (ZM) – Get Zoom Video Communications, Inc. Class A Report. On the day of its IPO, Zoom Video jumped more than 72%, but surprisingly Zoom Technologies jumped, at one point, 100% higher most likely due to investors choosing the wrong ticker on their trading platforms.
Archaea Energy – $LFG
The company that produces renewable gas energy in the U.S. Archaea Energy (LFG) , has its ticker at the very least suggestive for attracting attention on Reddit forums. In this case, the acronym is often used as an expression of encouragement and celebration — something along the lines of “let’s go”, but with the use of expletives.
But not only because of its suggestive ticker, the company attracted a lot of attention in the general market when it went public through an SPAC deal in September last year, and currently has a market cap of $2.1 billion and positive cash flow.
Despite being considered a relatively small market, renewable natural gas is attracting increasing attention in a world more focused on renewable energy. According to third party research firms, at a conservative estimate that 5% of renewable natural gas (RNG) is reached in North American distribution, this could represent an opportunity of approximately $18 billion in biogas equipment sales and $27 billion in annual RNG sales.
Furthermore, according to Wall Street analysts, LFG is a strong buy among three analysts, where they see the average target price at $27.67, which signals an upside of more than 50% from current prices.
Even though LFG’s performance is not yet off the charts, it is worth noting a possible chance that the momentum created with Reddit’s high popularity will motivate increased buying of Archaea stock as already seen many times with other bullish Reddit stocks.
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting the Wall Street Memes)