Day Traders Lighting Up Reddit Spur Rally in Tiny Health Stocks

TransEnterix Inc. almost doubled, climbing as much as 97% on Monday, as day traders drove heady gains in a handful of health-care stocks.

The stock has surged about 180% since the start of the new year. Today’s trading volume was more than 13 times normal. The penny stock garnered a mention in several Reddit forums over the past few days, with one user comparing it with the roughly $95 billion market-cap leader in surgical robotics, Intuitive Surgical Inc.

TransEnterix markets the Senhance surgical system, cleared by the U.S. Food and Drug Administration in 2017. According to the device-maker in an update last week, 10 of the systems were installed in 2020. The Morrisville, North Carolina-based company said it ended 2020 with $17.5 million in cash and equivalents, enough to keep the company afloat into the third quarter.

Day Traders Lighting Up Reddit Spur Rally in Tiny Health Stocks

Such outsized moves in small-caps are becoming par for the course these days. Also surging at the open on the back of mentions in Reddit forums was Zomedica Corp., a company that develops medicines for pets. The stock jumped as much as 98% on Monday and is up almost four-fold from the start or the year. Signal Advance Inc., another medical device-maker, soared as much 885% to a record high Monday after investors confused its ticker with another company mentioned in a tweet by Elon Musk. The stock pared gains, though was still up about 300% by midmorning.

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