From penny shares to IPOs, frothy stocks are having a moment

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In certain corners of the equity universe where tiny investors dominate, it\u0027s hard to say everything is going normally

Ascribe it to what you want: a boom in retail trading triggered by injections of government cash, stay-at-home orders and commission-free brokerages, maybe even the buy-low approach on steroids. More than 1 trillion shares changed hands in December over lightly regulated quotation systems run by firms like OTC Markets.

“There are an awfully large number of stocks that have both exploded higher and trade at a ‘that can’t be real’ multiple,” Pearkes wrote. “There are almost always a few names in this bucket, but over the last few months this number has exploded up to 59 at the moment.”

 

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