The huge Tanger Outlets hub in Foley, which lures tourists on their way to Alabama’s beaches, seems like an unlikely battleground in the stock market, but financial industry observers say Tangier is getting some interest in a GameStop-style power game.
TheStreet.com and other websites reported Thursday that the Tanger Factory Outlet Center stock action heated up due to the attention of the Reddit forum r / WallStreetBets. The company is a real estate investment trust that operates around 30 outlet centers, most of them in the southeast and northeast.
WallStreetBets, a forum for traders interested in unorthodox and sometimes quixotic trading strategies, has caused quite a stir in recent months when it targeted GameStop for a move called the Short Squeeze. Basically, traders who expect a stock to decline in value can sell short, which enables them to cash in the difference between their initially higher price and their future lower price. But you also expose yourself to the obligation to buy the stock whether it goes down or not.
In a quick press, traders try to raise the price, forcing short sellers to pay dearly. The wild fluctuations in the share price caused by such gimmicks have practically nothing to do with the intrinsic value of a company or its day-to-day operations.
In the GameStop affair, which took the company’s stock from around $ 17 per share to brief highs of more than $ 300, it appears that some individual traders have made whopping gains at the expense of a billionaire hedge fund. Setbacks included government scrutiny of trading companies, particularly Robinhood, and criticisms that the real victims would be careless stragglers who jumped on the bandwagon when the only way for things to happen.
The Tangier case has been much more moderate so far. A Motley Fool analysis published at www.nasdaq.com said Tangier stock was up 25% early Thursday, despite losing some of those gains over the next few hours.
“Tangier appears to be the newest destination for the WallStreetBets Reddit forum.” said this analysis. “As of early Thursday morning, Tangier was number 1 in the WallStreetBets community. And it’s not hard to see why. Almost 40% of Tangier’s float is currently being sold short. This makes Tangier the second most abbreviated company on the market, only marginally behind GameStop. “
The report from TheStreet.com Regardless of the way traders bet, the latest news from Tangier has been essentially good: “Shares have risen more than 76% since the start of the year as the pandemic was expected to end and retailers to return to the store Shopping will help increase earnings. “
“For the fourth quarter, Tangier said it managed to pull customer traffic to 90% of 2019 levels and received 95% of the rent billed over the same period.” reported TheStreet.com.