The Firefinch share price is falling amid the company deleting and clarifying a contentious tweet.
The post Firefinch (ASX:FFX) share price slides following tweet clarification appeared first on The Motley Fool Australia. –
The Firefinch Ltd (AXX: FFX) share price is falling this morning after the company released a potentially disappointing clarification.
Firefinch excited the market yesterday when the company announced details surrounding its inclusion in the VanEck Junior Gold Miners ETF (NYSE: GDXJ) on Twitter (NYSE: TWTR).
However, the gold miner and lithium developer has clarified that it didn’t authorise the tweet and investors shouldn’t rely on the information it contained.
Right now, the Firefinch share price is 67 cents, 1.47% lower than its previous close.
Let’s take a closer look at today’s news from Firefinch.
Firefinch share price slides following clarification of tweet
The Firefinch share price is in the red today following the company’s clarification of a since-deleted tweet.
Firefinch claims a contractor tweeted the GDXJ ETF will be spending a certain amount to buy Firefinch stock this week. The company also stated it didn’t approve the tweet.
According to reporting by Proactive Investors, which was shared by Firefinch’s LinkedIn account yesterday, the company was recently added to the ETF. However, the report said the fund is yet to purchase the shares needed to reach its allocated holding.
The Firefinch contractor is said to have put two and two together. They posted to Twitter the amount the ETF might spend to receive its allocated hold in Firefinch.
The Firefinch share price gained 9% amid the tweet’s publication yesterday.
Interestingly, while Firefinch has deleted the contentious tweet, a post on the company’s LinkedIn page still reads: “[T]he GDXJ EFT will have to purchase [$30 million] worth of [Firefinch] stock [by Friday’s close]”.
Further, the company’s clarification didn’t deny the validity of the information within the tweet. Instead, it warned investors not to rely on the information.
However, the company’s addition to the GDXJ ETF might not have caused all its gains yesterday. Firefinch also released its half-year results on Monday. The results may also have been responsible for a decent portion of the Firefinch share price increase.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Twitter. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.