That didn’t take long.
After surging 624% Tuesday upon making their public debut, shares of Sacks Parente Golf Inc.
SPGC,
Shares closed Tuesday at $28.97, after touching as high as $30 in that session. They then gave back most of that rally with an 85% plunge Wednesday, and by Thursday had already tumbled below the IPO price. Sacks Parente Golf’s stock melted further Friday to end the week at $2.51.
The stock’s quick implosion serves as a cautionary tale about investments in tiny companies with unspectacular business models, by most analyst accounts, whose shares are caught up in meme-like activity.
Sacks Parente Golf, which makes putting instruments, golf shafts and grips, saw its 2022 revenue edge down to $190,000 from $200,000 a year earlier, all while losses swelled to $3.5 million from $302,000. The Camarillo, Calif.-based company closed out the week with a valuation of just $34.7 million.
It’s unclear what drove the frenzied interest in Sacks Parente’s stock on its first day as a public company. The trading action comes during a period when small names like T2 Biosystems Inc.
TTOO,
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Nonetheless, Sacks Parente Golf’s performance shows how quickly gains can erode with high-flying, meme-like plays. The stock may have surged more than 600% to kick off its public life, but a few sessions of steep double-digit losses wiped all that away — and then some. The IPO price of $4 seems at least a bit more grounded than Tuesday’s levels near $30, but shares are still down a whopping 37% from that offer price.
