Synthesis Energy Systems, Inc. (NASDAQ: SES) hasn’t had the best of times in the market as of late. That is, until today. Early on, the stock is trading on gains of more than 45%. What’s more interesting is that there doesn’t seem to be any news going on. Here’s the deal:
SES Stock Cimbs More Than 45% On No News
Before writing this article, I looked for press releases, any updates from the SEC and even rumors on various rumor mil type websites. None of these yielded any clues as to why Synthesis Energy Systems would be making such a dramatic run for the top today.
So, I decided to start digging into message boards. Once again, there was nothing of real substance. The one thing that I did find was a message that pointed to a deal reached on Friday surrounding a coal mine, one of the largest in the United States.
While SES has no ownership of this coal mine nor any real dealings with the Navajo Nation, the author of the post suggested that this would lead to a short squeeze. From a fundamental standpoint, I can see how ensuring that one of the largest coal mines in the United States staying active will reduce any risk of increasing coal costs due to supply issues. Is this triggering a short squeeze? Well, I’m not sure of that.
One thing that I am sure of is that a short squeeze does seem to be taking place.
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