Nuburu (NYSEMKT:BURU) stock is on the rise Friday alongside heavy pre-market trading of the blue laser technology company’s shares.
As of this writing, more than 58.9 million shares of BURU stock have changed hands. That’s a massive surge in trading volume compared to the company’s daily average of about 10.7 million shares.
This movement comes without any clear news from the company. That includes a lack of press releases and earnings reports. There also isn’t any analyst coverage that would cause the stock to rally today.
One thing to note is that BURU is a penny stock. That comes from its prior closing price of just 16 cents and its market capitalization of about $6.167 million. The stock’s float is also 12.67 million units.
Why This Matters to BURU Stock
BURU being a penny stock opens it up to certain dangers. That includes the ability for retail and day traders to pump and dump the shares. That could explain why the stock is up today without any clear catalyst.
If that’s the case, traders will want to be careful about taking a stake in the company. It might not be long before the stock gives up its gains today. When that happens, some unlucky traders will likely be seeing red.
BURU stock is up 66.9% as of Friday morning.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
