Oxbridge Re Holdings (OXBR) Stock Is Rocketing In A FOMO-Led Rally

Oxbridge Re Holdings Ltd (NASDAQ: OXBR) is running for the top in the market this morning, but the move is shocking to many. There hasn’t been a press release or SEC filing from the company since mid-August. So, what’s the deal?

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OXBR Stock Runs On FOMO-Led Rally

As mentioned above, Oxbridge Re Holdings is flying in the market this morning. The stock is up well over 100% and has been halted twice. Simply put, there’s a lot of excitement floating around OXBR stock out there.

But with no news since mid-August, what’s the deal? Why is the stock rocketing.

I’ve searched message boards, the company’s website, the wire, and just about anywhere else I could think of and couldn’t find any fundamental catalysts driving the move. However, there is one thing that I’m sure is playing a role here. That’s FOMO.

The fact of the matter is that OXBR stock has an ultra-tiny float at around 3 million shares. As a result, any large purchase of stock has the potential to move the needle. Of course, when that happens, others see the gains and don’t want to miss out on the profits, leading to further gains and a revolving door of more of the same.

This is a classic tiny float brakout. But, if you want to jump in, there are a couple of reasons to be careful:

  • What Goes Up Must Come Down. When a low float stock rallies like this, it tends to quickly correct. So, there’s no telling when the reversal will take place. Getting in on such gains could be a very risky play.
  • No News. With no fundamental news driving the gains, either someone with inside information is going to get in serious trouble here or this move is purely technical, meaning that there has been no change to the intrinsic value of the company. Sure, it would be great to see news ahead, but banking on positive announcements ahead is risky.

The Bottom Line

The bottom line here is that Oxbridge Re Holdings is having a great day in the market, but the move seems to be driven by technical cues and FOMO. As a result, the stock could fly higher, but the gains aren’t likely to last long.

So, for the right trader, this is a huge potential opportunity. However, for the novice or long-term investor, buying in at these levels leaves a huge potential for losses.

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