Remark Holdings Bursts Onto Penny Stock Scene Amid Wynn Deal Rumors

Posted on: May 6, 2020, 11:47h. 

Last updated on: May 12, 2020, 07:25h.

Remark Holdings, Inc. (NASDAQ:MARK), a small Las Vegas company perhaps best known for owning the  web site, is soaring Wednesday. That’s amid social media-fueled rumors that the firm will sell thermal scanners for COVID-19 detection to Wynn Resorts (NASDAQ:WYNN).

Remark Holdings COVID-19 Products
Penny stock Remark Holdings soared Wednesday on rumors it’s selling COVID-19 products to Wynn Resorts. (Image: Reuters)

As of this writing, Remark stock is higher by 41.64 percent on volume that’s nearly nine times the daily average, placing it at its highest levels since March. Earlier today, the Twitter account @StanTradingMan posted an email from Wynn Las Vegas guest relations confirming that the integrated resort operator is partnering with Remark for thermal screeners and cameras to be used throughout its venues.

A Twitter post with a letter supposedly from Wynn detailing a relationship with Remark Holdings. (Image: @StanTradingMan)

At around 1:30 p.m. Eastern time, @StanTradingMan posted another image that appears to be an effort by Wynn guest relations to recall the previous email mentioning the possible relationship with Remark.

The company, with a market value of just $36.62 million, says its artificial intelligence (AI) products “are being rolled out in a wide range of applications within the retail, financial, public safety, and workplace arenas. The company also owns and operates digital media properties that deliver relevant, dynamic content and e-commerce solutions.”

A call by to Remark’s investor relations department wasn’t returned prior to publication of this article.

Other Signs

On April 30, Remark posted a video on its Twitter feed of Wynn CEO Matt Maddox on a recent visit to the White House. The video shows him describing the company’s 23-page plan to reopen the Nevada economy and steps it’s taking in coronavirus preparedness. Maddox mentions thermal imaging cameras in the video, but doesn’t say by whom those products were made.

The tweet, which at this writing garnered 48 retweets and 147 “likes,” contains three hands clapping emojis and the following: @WynnLasVegas #RemarkAI $MARK #COVID19 #prevention #safety @GovSisolak.

While it hasn’t been confirmed that Wynn is a Remark customer, the latter says it has gaming industry clients.

We are proud that customers such as casinos, entertainment venues, government agencies, hospitality organizations, industrial operations, law enforcement, and retail establishments have placed their trust in our AI-based thermal products to function as part of the solution for reopening the US economy,” said Remark CEO Kai-Shing Tao in an April 30 statement.

Wynn is taking reservations at its Las Vegas properties for Memorial Day weekend.

Pump And Dump?

Remark’s spectacular Wednesday rally sparked calls in some forums that this is no more than a “pump and dump” – the scenario where small, low-priced stocks soar in a day, or over a few days, only to dramatically crater soon thereafter when traders realize the rumors were unsubstantiated or that the company’s fundamentals are poor.

On StockTwits, a popular trading message board and social media community, there are some pump and dump allegations on the Remark page.

However, the site’s data indicates community sentiment on the stock is overwhelmingly bullish. Message volume on the name is higher by 20.22 percent today, and it has 19,330 followers on the site, a tally that’s growing by the minute.