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Citron Research that Called Jumia Fraud, Ends 20 Years of Short Selling Report After Losing Big on GameStop

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Andrew Left, Citron Research

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.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Nigerian Stock Exchange

Stanbic IBTC Holdings to Release Audited 2021 Half Results in August 2021

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Stanbic IBTC - investorsking.com

Stanbic IBTC Holdings Plc, one of the leading banks in Nigeria, on Wednesday announced its Board of Directors has decided to audit the Half Year Financial Results of the bank.

The bank announced in a statement signed by Chidi Okezie, Company Secretary.

According to the bank, the Audited Results for the Half Year Ended 30 June 2021 will be released not later than 29, August 2021 after the Central Bank of Nigeria has approved it.

The statement reads, “Having duly notified NGX RegCo of this development, the Management of Stanbic IBTC wishes to notify the investing public that the Company will aim to publish its 2021 Audited Half Year Results on or before 29 August 2021 in accordance with the extant Rules of NGX Regulation Limited as cited above.

“Thank you for your understanding. For any enquiry, please contact Chidi Okezie, Group Company Secretary – Email: chidi.okezie@stanbicibtc.com or Idris Toriola, Head Investor Relations – Email: idris.toriola@stanbicibtc.com; Tel +234 422 8501”

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Nigerian Stock Exchange

Equities Market Closes in Red on Monday

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Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited extended its bearish trend on Monday as several unclear economic policies continue to dictate market sentiment.

Investors traded 209,212,596 shares estimated at N1.763 billion during the trading hours of Monday.

Market value of listed equities dipped to N20.089 trillion on Monday, while the Nigerian Exchange Limited All-Share Index lost 0.27 percent 38545.30 index points.

Meyer Plc led gainers with 8.77 percent to close at N0.57 a share. This was followed by Champion Brew. Plc with 6.06 percent. See the details below.

Top Gainers

Symbols Last Close Current Change %Change
MEYER N 0.57 N 0.62 0.05 8.77 %
CHAMPION N 1.98 N 2.10 0.12 6.06 %
JBERGER N 19.10 N 20.00 0.90 4.71 %
REGALINS N 0.50 N 0.52 0.02 4.00 %
IKEJAHOTEL N 0.94 N 0.97 0.03 3.19 %

Top Losers 

Symbols Last Close Current Change %Change
FIDSON N 5.10 N 4.60 -0.50 -9.80 %
LASACO N 1.50 N 1.36 -0.14 -9.33 %
FTNCOCOA N 0.33 N 0.30 -0.03 -9.09 %
MBENEFIT N 0.45 N 0.41 -0.04 -8.89 %
CORNERST N 0.58 N 0.55 -0.03 -5.17 %

Top Traders

Symbols Volume Value
ACCESS 22719611.00 193988537.35
MANSARD 16700986.00 15046288.96
ZENITHBANK 16144873.00 384583513.35
MBENEFIT 14685025.00 6036206.91
CHAMS 13478252.00 2703150.40

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Bonds

FG To Auction Three Bonds Worth 50B Each This Week

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Bonds- Investors King

The Debt Management Office has said that the Nigerian government will offer N150 billion bonds for subscription in June.

The bonds comprised three bonds worth N50bn each, a circular said Friday.

The DMO said the bonds will be auctioned on June 23 and all three have the same date for settlement.

The bonds are a 10-year re-opening bond to be offered at the rate of 16.2884 percent and to mature in March 2027; a 15- year re-opening bond to be offered at 12.5 percent with the maturity date of March 2035; and a 30-year re-opening bond to be offered at 12.98 percent and mature in March 2050.

FGN Bonds are “backed by the full faith and credit of the Federal Government of Nigeria”, the DMO said, adding that they are equally charged upon the general assets of Nigeria.

The debt office explained further that FGN bonds qualified as liquid assets for liquidity ratio calculation for banks.

For re-openings of previously issued bonds where the coupon is already set, the circular said successful bidders would pay a price corresponding to the yield to maturity bid that cleared the volume being auctioned, plus any accrued interests on the instrument.

Last month, the DMO offered similar bonds of N150bn bonds for a subscription which comprised three bonds worth N50bn each.

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