Citron Research that Called Jumia Fraud, Ends 20 Years Short Selling Report After Losing Big on GameStop
What a day for Jumia? Wallstreetbets just killed Citron Research’s criminal short-selling report that tagged Jumia fraud and plunged the shares of the e-commerce giant shortly after getting listed on NYSE.
The same report was rejected by over 3 million amateur traders on Reddit, a popular forum in the US, who took aggressive opposite trades on GameStop following Citron Research publication.
Citron Research sell positions plunged into the red zone. The firm and other short sellers lost a combined $19.75 billion in January after the price of GameStop surged by 870 percent in the last two weeks.
Background Story of Citron Research
Citron Research is a firm that specializes in demonizing companies, especially small companies and then sells their stocks, saying they will fail. Sometimes these negative publications are not true but because it creates panic and negative sentiment around those stocks, a lot of investors will start dumping their shares out of fear. Andrew Left, the founder was ban from trading in China and Hong Kong but not in the USA as his activities were seen as legal despite its damages.
Citron went after Jumia and the price of Jumia’s shares plunged from around $45 per share to $2 per share. Presently, trading at $57.65 per share, another evidence of Citron Research wrong projections.
However, Citron met its waterloo when it took on GameStop. Amateur traders that number over 3 million on a thread popularly referred to as Wallstreetbets on Reddit, refused the report and took several buy positions while encouraging others to do the same
In few days, Citron’s position worth billions of dollars turned red. Andrew Left, the founder went to court to halt their activities but it failed as they fought back and were allowed to resume trading.
In a Youtube video, he said “I took the lawsuits, I went to court, I took the questions to lay the foundation. So obviously, I support any opposing opinions.”
“But what I never did was I never got personal, I never got nasty, and I never threatened a corporate executive, their family, or any shareholders. It was always business.” That was in response to a series of threats that trailed the shutdown of their thread on Reddit and suspension of trading on GameStop by several trading platforms.
Citron Research has now announced it would suspend its 20 years of short-selling research that brought sadness to several small businesses and to executives.
Left also has some words of advice for amateur traders, “When you make your profits, make sure you put some away for the IRS,” he warned.
“That money is not all your money. But, at the end of the year, you do owe tax money.”
GameStop rose from $17 per share to $300 within two weeks.
Fidelity Bank to Raise U.S$500 Million for General Corporate Purposes
Fidelity Bank, Nigeria’s leading tier-II bank, is planning to raise US$500,000,000 from the international debt capital market through an unsecured note issuance, the bank disclosed in a statement filed with the Nigerian Exchange Limited on Monday.
According to the bank, the proceeds will be used for general corporate purposes and to support its trade finance business.
The proposed aggregate offer size is US$500 million, due 2026, which will when issued ranked parri passu, without preference among themselves, with all other unsecured and unsubordinated obligations of the Bank. The lender intends to list the Notes on the Irish Stock Exchange, with the expectation that the notes will be traded on its regulated market. The Securities and Exchange Commission has confirmed that it has no objection to the transaction.
“In view of the foregoing, the Bank is pleased to notify the Nigerian Exchange Limited of planned investors meetings with respect to the Transaction scheduled to commence today October 18, 2021.
“The final decision to issue the Notes will however be subject to finalising the necessary transaction documentation and prevailing market conditions,” the bank stated.
Nigerian Exchange Group Lists N1.964 Ordinary Shares at N16.15 Per Share on NGX
Nigerian Exchange Group on Friday listed 1,964,115,918 ordinary shares on the Nigerian Exchange Limited’s Main Board following the demutualisation of the Nigerian Stock Exchange.
The listing was after the Nigerian Exchange Limited approved the application of the group to list its entire issued and fully paid 1,964,115,918 ordinary shares of 50 Kobo each at N16.15 per share.
The Group trading symbol NGXGROUP.
Speaking on the listing, Mr. Oscar Onyema, the Chief Executive of NGX Group, said the listing had opened up new opportunities for the company.
He said, “The demutualisation of the Nigerian Stock Exchange created the opportunity to restructure and reposition the organisation to achieve our expanded vision to be the preferred and premier exchange hub for Nigerian businesses and the wider African economy.
“The most significant benefit of our listing on the NGX exchange is the ability it gives us to drive inorganic growth as we add new subsidiaries and business lines that complement our business. This new era is indeed very exciting for us and we look forward to many possibilities achievable from deepening our various partnerships.”
Stock Investors Gained N329 Billion as FBN Holdings Sustained Gains
Investors gained N329 billion at the Nigerian Exchange Limited (NSE) last week as stocks of Champion Breweries, FBN Holdings and others closed in the green.
During the week, investors traded 2.179 billion shares worth N21.963 billion in 22,438 deals, in contrast to a total of 2.187 billion shares valued at N16.183 billion that exchanged hands in 14,377 deals in the previous week.
In terms of volume traded, the Financial Services Industry led the activity chart with 1.770 billion shares valued at N18.058 billion traded in 12,942 deals. Therefore, contributing 81.20 percent and 82.22 percent to the total equity turnover volume and value, respectively.
The Conglomerates followed with 93.178 million shares worth N169.819 million in 736 deals. In third place was ICT Industry, with a turnover of 72.338 million shares worth N1.043 billion in 861 deals.
FBN Holdings Plc, Universal Insurance Plc and Fidelity Bank Plc were the three most traded stocks in the week, accounting for 1.161 billion shares worth N12.338 billion that were traded in 3,460 transactions during the week. The three contributed a combined 53.28 percent and 56.18 percent to the total equity turnover volume and value, respectively.
The market capitalisation of listed stocks gained N329 billion or 1.62 percent from N21.296 trillion recorded in the previous week to N21.625 trillion last week.
NSE All-Share Index appreciated by 1.39 percent or 569.79 index points to close at 41,438.15 index points last week, up from 40,868.36 index points recorded in the previous week.
Similarly, all other indices finished higher with the exception of NGX ASeM Index which closed flat. The exchange extended year-to-date return to 2.90 percent.
How FirstBank Employees Are Making A Difference in Their Immediate Environments Through The SPARK Initiative
African Development Bank Group President Akinwumi Adesina Assures Nigeria of Bank’s Strong Support to Achieve Food Security
Fintech TagPay Rebrands to Skaleet
Social Media2 weeks ago
Facebook Downtime Plunges Zuckerberg’s Wealth by $7B in Few Hours
Economy4 weeks ago
FG Plans To Deliver 15 Projects Across The Country With $4B Foreign Loans
Government4 weeks ago
Envoy Considers Establishment Of Chinese Banks In Nigeria To Boost Economy
Crude Oil2 weeks ago
Crude Oil Trading Near 3-year High Following OPEC+ Agreed to Gradual Increase
eNaira3 weeks ago
Official eNaira Website Goes Live
Economy3 weeks ago
British Petrol Stations Run Dry as Truck Driver Shortage Disrupts Supply Chain
Energy2 weeks ago
Ikeja Electric Notifies Lagos Customers On 8-Week Power Outage
Government4 weeks ago
Lagos Prohibits Open Cattle Grazing, Sanwo-Olu Signs Bill Into Law