Clean Energy Fuels, ContextLogic soar as retail traders pick new meme stocks

Clean energy

Source: Clean Energy

A new day means new destinations for retail.

Clean Energy Fuels’ shares rose 36% shortly after the market opened on Wednesday, coinciding with mentions of the company on internet chat boards, while ContextLogic was up 20%.

Clean Energy Fuels is the second most talked-about name among retailers in the past few hours, after Clover Health, according to data from HypeEquity before the bell on Wednesday.

ContextLogic is the most mentioned stock on Reddit’s WallStreetBets forum for the past 24 hours, behind Clover Health, according to QuiverQuant, who tracks activity on the website. ContextLogic is known as Wish.com, an e-commerce platform.

According to QuiverQuant, Clean Energy Fuels is the fourth most popular stock.

The sudden interest in the renewable natural gas company and e-commerce name follows similar retail activity in stocks like AMC, GameStop, Wendy’s and BlackBerry. At one point on Tuesday, Clover’s shares more than doubled. Clover stocks rose again on Wednesday.

Newport Beach, Calif. Based Clean Energy Fuels has a relatively low float of 66%, which means the stock is easier to manipulate. And according to FactSet, around 8% of the float is sold short.

ContextLogic has an even smaller proportion of its shares in the open market, with only 54.5% of the shares outstanding floating. Around 11% of the company’s shares are sold short.

Commenting on the sudden rise of clean energy fuels, CNBC’s Jim Cramer said investors should “be careful … the company has had no real sales growth and almost no profitability in a decade.”

Trading activity at Clean Energy Fuels has increased in the past few days, with more than 44 million shares changing hands on Tuesday. This contrasts with a 30-day average volume of almost 9 million shares traded daily.

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