Days ago, AMTD International (AMTD) went ballistic, running from about $1 to $12.90.
Now, we’re watching as Magic Empire Global Limited (MEGL) follows suit. New to the market, the stock is up 2,900% at the moment at $120.
For those of you that are new to MEGL, Magic Empire Global Limited is a financial services provider in Hong Kong which principally engage in the provision of corporate finance advisory services and underwriting services. Its service offerings mainly comprise (i) IPO sponsorship services; (ii) financial advisory and independent financial advisory services; (iii) compliance advisory services; and (iv) underwriting services.
According to Bloomberg, “Seven of the 10 US listings from China and Hong Kong this year have now experienced similarly unusual price action. That stands out at a time of otherwise muted IPO activity due to market volatility and reduced public valuations.”
And, as we’ve seen with AMTD, stocks that rise this quickly, tend to drop just as fast.
If you decide to buy into the ridiculous momentum behind MEGL, be very careful. There’s no telling how this rally could end.