ASX Small Cap Lunch Wrap: Big investors are scrolling reddit for stock market tips

Wall Street is looking to influential stock trading subreddits like r/wallstreetbets to gain an edge.

A perfect storm of pandemic-induced boredom, red hot stock markets, and zero-fee trading has inspired retail investors flock to equities this year.

They now represent the second largest group in the US market, morphing into a force “Wall Street can’t afford to ignore”, according to Bloomberg.

Benn Eifert, chief investment officer of hedge fund QVR Advisors, points to popular reddit community r/wallstreetbets, which is legendary for its high risk/high reward play-style.

Like the guy who claims he took out $US400,000 in loans to day trade during COVID-19 – and made $US6.3 million.

“There are influencers within that community that will say, ‘Alright, today we’re buying the Tesla $US2500 calls for next Friday,’ and the volumes that will print are huge,” Eifert says.

“And you better believe that the most sophisticated options players in the world — the Susquehannas and Citadel Securities — are extremely focused on this flow and predicting it in real-time.”

Papa Elon from r/wallstreetbets

To markets…

US share markets rose on Tuesday. Tesla shares were up 7.2 per cent as anticipation builds on reddit for the carmaker’s ‘Battery Day’ event next week.

Aussie shares were higher on the open, with the benchmark ASX200 Index gaining 45 points or 0.77 per cent to 5,940 by 12pm EST.

WINNERS

Here are the best performing ASX small cap stocks at 12pm Wednesday September 16:

Swipe or scroll to reveal the full table. Click headings to sort.

CODE	NAME	PRICE	% CHANGE	MARKET CAP
EER	East Energy Resources	0.03	900	$ 9,602,961.11
SAN	Sagalio Energy	0.055	588	$ 1,637,281.04
T3D	333D	0.002	100	$ 2,131,991.53
ICI	Icandy Interactive	0.056	87	$ 11,031,763.44
ALT	Analytica	0.003	50	$ 10,558,837.00
ANW	Aus Tin Mining	0.0015	50	$ 3,218,662.95
BAS	Bass Oil	0.0015	50	$ 6,684,280.19
CCE	Carnegie Clean Energy	0.0015	50	$ 11,141,452.45
PCL	Pancontinental Oil	0.0015	50	$ 5,406,715.49
FFG	Fatfish Group	0.016	45	$ 8,969,204.28
CLA	Celsius Resources	0.032	39	$ 17,945,015.86
NPM	Newpeak Metals	0.004	33	$ 12,697,105.33
PAK	Pacific American	0.026	30	$ 5,541,698.00
LNY	Laneway Resources	0.009	29	$ 26,425,461.53
LMG	Latrobe Magnesium	0.028	27	$ 28,523,067.52
MYQ	Myfiziq	1.035	27	$ 93,635,694.75
SGI	Stealth Global	0.105	24	$ 8,066,500.00
KTA	Krakatoa Resources	0.1	23	$ 20,326,950.00
TNY	Tinybeans	1.12	20	$ 42,577,515.75
MNW	Mint Payments	0.012	20	$ 11,339,712.97
GAS	State GAS	0.61	20	$ 74,642,077.14
THR	Thor Mining	0.013	18	$ 4,679,291.28

Coal/renewable energy minnow Pacific American (ASX:PAK) is dipping a toe into WA gold exploration, while former cobalt high flyer Celsius Resources (ASX:CLA) is buying a suite of copper-gold projects in the Philippines.

And mobile gaming stock iCandy (ASX:ICI) is up two days in a row after a “strongly supported” placement announced yesterday received more than $5 million in bids.

LOSERS

Here are the worst performing ASX small cap stocks at 12pm Wednesday September 16:

Swipe or scroll to reveal the full table. Click headings to sort.

CODE	NAME	PRICE	% CHANGE	MARKET CAP
ECT	Env Clean Tech	0.001	-33%	$ 14,401,549.18
PSL	Paterson Resources	0.003	-25%	$ 15,441,989.25
KAS	Kasbah Resources	0.012	-20%	$ 2,030,699.28
LCY	Legacy Iron Ore	0.004	-20%	$ 31,236,192.59
FFR	Firefly Resources	0.19	-17%	$ 59,119,092.36
EGR	Ecograf	0.17	-17%	$ 74,617,287.44
CFO	Cfoam	0.025	-17%	$ 5,765,220.78
THC	THC Global Group	0.23	-16%	$ 48,393,887.85
CGN	Crater Gold	0.012	-14%	$ 17,184,942.14
AVE	Avecho Biotech	0.007	-13%	$ 12,779,659.36
BAT	Battery Minerals	0.014	-13%	$ 21,089,464.78
JXT	Jaxsta	0.15	-12%	$ 27,273,051.21
DAU	Dampier Gold	0.03	-12%	$ 9,688,658.36
BUX	Buxton Resources	0.115	-12%	$ 17,687,206.16
GSW	Getswift	0.37	-11%	$ 89,486,365.34
LCL	Los Cerros	0.1875	-11%	$ 76,908,516.72
PO3	Purifloh	1.96	-10%	$ 69,036,460.62
AGE	Alligator Energy	0.0045	-10%	$ 7,192,146.71
EVE	EVE Investments	0.009	-10%	$ 38,229,918.89