PLCE and SGML are both trading under $20
Children's Place Inc (NASDAQ:PLCE) and Sigma Lithium Corp (NASDAQ:SGML) are this week's picks for Schaeffer's Cheap Seats: Stocks Under $20 segment. Though the from widely different sectors, the stocks are united today in their notable price movements.
Children's Place stock was last seen up 98.8% at $9.74, following the retailer's unexpected profit for the second quarter. The company posted earnings of 30 cents per share, besting analyst estimates of a loss of $1.05 per share and making up for a revenue decline. This soaring price action has PLCE jumping off of 27-year lows and headed for largest single-day percentage gain ever. Year to date, the equity is still down roughly 58%.
PLCE has seen 27,000 calls and 13,000 puts exchanged so far, which is already 27.1 times its average daily options volume. The September 10 call is the most popular, with new positions being bought to open there.
Sigma Lithium stock was up 12.5% at $10.58 at last glance, joining the rest of the lithium sector in its surge. According to Mining.com, China-based CATL, the world's largest manufacturer of lithium batteries for electric vehicles, is allegedly halting production and adjusting its output, giving its peers a widespread boost. On the charts, pressure at the $11.60 level lingers above, however, as SGML struggles to rally off its Aug. 13 two-year low of $8.47. Year to date, the equity is down 66.4%.
It's worth noting that short interest has been building, and now represents 11.3% of the stock's available float. It would take shorts nearly 16 days to cover, at SGML's average pace of trading.