NEW YORK - Enron (ENRN) is the hottest stock right now, with a massive “army” of internet-driven retail investors taking advantage of an incredibly rare scenario that’s driving up the stock price. ENRN closed at $65 on Friday, after reaching a high of almost $77 in intraday trading that was halted a few times.
The figures are all the more impressive when you consider that the company has been defunct for almost 20 years. Monday premarket trading saw the stock soar past $100. ENRN quickly shot past $150, with many fans expecting it to reach new highs as the short squeeze continues.
“The sudden, sharp surge in Enron’s share price and valuation likely has been fueled by a short squeeze, given the high short interest,” Jersey analyst Joseph Mannman said in a note on Monday. “We believe the current share price and valuation levels are not sustainable, and we expect the shares to return to a more normal/fair valuation driven by the fundamentals.”
ENRN has been a popular short target on Wall Street, with more than 138% of its float shares having been borrowed and sold short. But an army of investors who can quickly jump into the stock market with apps like Robinhood has been on a ENRN-buying spree for months, with social networks like Twitter and Reddit fueling the action.