Torchlight Energy Resources (TRCH) Continues To Soar: What To Do?
1:19 am Thursday, June 17th, 2021
As far as energy stocks are concerned, the Torchlight Energy Resources (NASDAQ:TRCH) stock has been one of the biggest movers so far this year and the rally in the stock continued on Tuesday.
Yesterday, the Torchlight stock jumped by 42% and that took its gains for the year so far to as much as 615%. In light of such massive gains, it might be important for investors to look into the factor that led to the rally. The rally is rooted in both fundamental reasons as well as social media discussions around the Torchlight stock.
Earlier this week, the Torchlight stock was the stock with the third-highest number of mentions on the social media website Stocktwits chat room as per a report from Bloomberg. Social media activity has been one of the major reasons behind remarkable rallies in plenty of stocks this year and hence, it is an important factor to consider.
The main reason behind the flurry of discussion about Torchlight was the announcement of the company’s merger with the advanced materials manufacturer Metamaterial. The announcement was made by the company on June 11 after the company’s shareholders approved the deal. After the merger is completed, Metamaterial shareholders are going to control 75% of the new entity.
On the other hand, it is also important to look at some of the fundamental reasons which might have resulted in the rally in the stock. Earlier this week, the company announced a special dividend of its Series A Preferred Stock that is going to be awarded on for one basis to those who hold the Torchlight common stock.
In addition to that, it was also announced that it expects the Metamaterial merger to be concluded by the end of June 2021. These are two of the main factors that have resulted in the strong rally in the Torchlight stock recently and investors could consider adding it to their watch lists.
