Remember the company that was introduced by the WeChat scammer?
Basically, the stock analyst who added Mr Budget “accidentally”, suggested that Mr Budget should trust her and to buy HK 3313, a stock that will see a 10-20% short term gain.
News just broke today that the share price plunged 3800% from a high of HKD14.82 to HKD0.30 today.
The counter was actually the world’s best performing stock leading up to the crash. Even the crypto crash could not rival this 98% share price plunge!
According to the official news, MSCI, a well known global index shared that it will not be adding the counter onto its index, after “further analysis and feedback from market participants on investability”. No-one from the Artgo company can be reached for further comments too.
The more I read about the various reports on Artgo, the more the company looked like it was under financial engineering and artificial price inflation to get retail investors to pump up the price.
The fundamentals of the company does not make sense at all – in 2018, the company lost 400M RMB, and is valued at over 40B RMB? Shouldn’t the government officials have noticed this red flag?
It is quite scary to know that the market is also prone to price manipulation, and that the ones with money and access will and can control the market.
They would even come out with elaborate internet / WeChat scams to get retail investors to throw in their money to pump up the share prices, before they dump all their shares. At the end of the day, you can only blame any victims on their greed.
Lessons to note:
- Invest in companies with proven track record with solid financial fundamentals.
- Invest in dividend paying companies.
- If something is too good to be true, it probably is.
- Don’t be sucked in by get-rich-fast schemes.
Stay safe everyone! 🙂
(Title is a bit dramatic – I looked at the company finances and it was very big obvious red flag)
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