An obscure company that employs five people and appears to produce insignificant amounts of oil and natural gas from some wells in Appalachia became the latest daily trading fashion fueled by Reddit, which shot up nearly 1,000% and is turned into a $ 128 million business in a matter of hours.
New Concept Energy Inc. received a mention from retailers on Reddit’s WallStreetBets forum on a day when brokers, including Robinhood Markets, slowed the trading of stocks like GameStop Corp. after some of the wildest changes in the markets in recent years. .
For a company that produces only 70 barrels of oil equivalent a day and has a board whose average age is 74, that was still enough to send its shares 959% to $ 25, the highest since 2000.
There is little interest in New Concept Energy fell to 0.3% of its buoyancy from 13% earlier this month, according to data from S3 Partners.
The company did not immediately respond to a request for comment on the performance of Thursday’s meteoric shares.
At the end of 2019, New Concept Energy had 153 producing gas wells and 44 non-producing wells, with mineral leases of more than 20,000 acres, according to regulations presentations.
According to its report, the company lost 46 cents per share on revenue of $ 590,000 in 2019 annual report.