An obscure company that has five employees and appears to produce negligible amounts of oil and gas from a few wells in Appalachia has become the latest Reddit-fueled daily trading craze, growing by nearly 1,000% to become a $ 128 million company. in a few hours.
New Concept Energy Inc. received a mention from retailers on the RedSit WallStreetBets forum on a day when brokerages, including Robinhood Markets, restricted trading in stocks such as GameStop Corp. after some of the wildest stock fluctuations the markets have seen in recent years.
For a company that produces only 70 barrels of oil equivalent per day and has a board with an average age of 74, this was still enough to send its shares 959% to $ 25, the most great since 2000.
He has little interest in New Concept Energy fell to 0.3% from 13% earlier this month, according to S3 Partners.
The company did not immediately respond to a request for comment on Thursday’s weather stock performance.
At the end of 2019, New Concept Energy owned 153 gas wells and 44 unproductive wells, with mineral leases on an area of ​​20,000 acres, according to regulations filings.
The company lost 46 cents a share to revenue of $ 590,000 in 2019, according to its data annual report.