Score One for Inefficient Markets

On Thursday, Elon Musk tweeted the cryptic message “Use Signal.”

The billionaire’s tweet was liked and re-tweeted many thousands of times. The day before, shares of Signal Advance (SIGL) closed at 60 cents per share. On Thursday, it got to $3.76 per share.

There’s one slight problem. Signal Advance has nothing to do with Elon Musk. It’s a biotech stock that was formerly known as Biodyne Development Company. Musk wanted people to use Signal, an encrypted-messaging platform which isn’t publicly traded.

Here’s the craziest part. SIGL continued to rally even after the truth was uncovered. On Monday, it got to over $70 per share.

Now reality is beginning to set in. But only partially. SIGL is down 57% this morning, but that only brings it to $16.50 per share.

Posted by on January 12th, 2021 at 10:21 am


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