Shares of the stereo headphones’ designer and manufacturer, Koss Corporation have been on a rally since yesterday, following a similar trend as GameStop. Shares rocketed 80% Monday and continued to double on Tuesday to $12.12 per share thanks to the online community, WallStreetBets Reddit.
Will Meade’s Tweet
Former Goldman Sachs portfolio manager Will Meade yesterday pointed towards three stocks that the “army” could go after next. These stocks were KOSS, CLVS, and AMC, each with a short interest above 35% and priced under $10 per share. AMC is a theatre chain that just averted bankruptcy while Clovis Oncology works on cancer treatments.
Koss gained 80% yesterday while the volume was almost 19 times the daily average, giving the company a market capitalization of $44.4 million. While the average trading volume stands at 334.19K shares, recently Koss reached a trading volume of 7177630. The shares 52-week high price is $5.10, indicating that the current price is 112% higher than the previous high.
Koss Vs Coronavirus
Koss joined the market in 1958 when Jon C. Koss invented the high quality, first SP/3 stereophone. The brand is popular among consumers who believe the company would deliver adequate and creative listening solutions.
The company struggled to fight against the pandemic and reported falling revenue in August. Sales plunged 16% to $18 million from $21 million as compared to the same period last year. The Milwaukee, Wisconsin-based company failed to report profits and posted a net loss of $0.4 million compared to a profit of $0.3 million for the same period last year.
While some investors are hoping to capitalize on the increasing price, there remains a possibility that the gain in price would be short-lived.