Under the new pneumonia (CCP virus) epidemic, the global central banks released water to rescue the market, the market liquidity flooded, a speculative flow into the stock market, triggering asset bubbles. Greenlight Capital (Greenlight Capital) founder, hedge fund trader David Einhorn recently shared the story with clients, said the United States New Jersey, a publicly traded company, only one of its deli, the deli’s cumulative turnover in the past two years only 35,000 U.S. dollars (about 270,000 Hong Kong dollars), but the market value of this listed company is more than 100 million U.S. dollars (about 780 million Hong Kong dollars), so he took this opportunity to warn retail investors, to pay attention to the risks of the stock market.
Foreign media quoted Einhorn pointed out that someone told them about Hometown International (U.S. stock: HWIN), a company that has only one deli, called Your Hometown Deli, opened in the suburbs of New Jersey, with a cumulative turnover of $35,748,000 over the past two years, but the company’s market value is HWIN’s market value rose to an all-time high of $113 million on Feb. 8, but the company’s largest shareholder, chief executive, treasurer and director is Paul Morina, who, in his capacity as a wrestling coach at the high school near the deli, is a member of the board of directors.
HWIN began trading in 2019, and its shares are listed on the OTC over-the-counter market, with a small daily volume of a few hundred shares at best, and often no record of any transactions for days. She is also Morina’s school colleague and a math teacher.
HWIN’s only deli was closed from March 23 to September 8 last year due to the outbreak, but paradoxically, the company’s share price rose from $3.25 to $9.25 during that period, and then to a record high of $14.
HWIN closed yesterday (15th) at $13.50. The company has a market capitalization of $105 million and Morina, its largest shareholder, owns 19% of the company. This means that its shareholding is worth at least US$20.5 million (about HK$160 million).
OTC stocks, also known as the “pink sheets market”, are mostly so-called “egg dumpling stocks” (penny stocks, Penny Stock), which have long been considered to harbor significant investment risks. In recent months, the share prices of these “egg dumpling stocks” are also soaring, reflecting the bubble in U.S. stocks is white-hot.
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