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Chinese Tech Company's 3,000% Post-IPO Gain Takes Unthinkable 4% Hit

Tyler Durden's picture




 

Two weeks ago, we brought you the story of Beijing Baoefung Technology which in many ways exemplifies everything that's wrong (or right, depending on whether you, like Japan’s Economics Minister Akira Amari, have come to believe that bubbles are good) with today's capital markets. The online video company's shares posted a remarkable post-IPO run amid China's red-hot equity mania, but as FT reports, something went terribly wrong on Thursday: the stock fell.

This column’s favorite stock for the past month has been Beijing Baofeng Technology, which offers online videos in China. Baofeng means “storm”, and it has been a near-perfect performer: its shares traded limit-up every day from its March IPO in Shenzhen apart from one, and opened up the maximum 10 per cent on Thursday, too.

 

It looks like the storm has now broken. Its shares ended the day down for the first time, falling 4.4 per cent after news of a copyright dispute over content. 


 

There's no need to panic though because "the stock [is] up 3,285 per cent from the offer price."

In other words:

 

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Thu, 05/14/2015 - 22:04 | 6095697 SolidSnake961
SolidSnake961's picture

QE time!

Thu, 05/14/2015 - 22:19 | 6095743 flacon
flacon's picture

It's a moral outrage that stocks can go down. Let's petition the government about this unfairness. 

Thu, 05/14/2015 - 22:39 | 6095804 Publicus
Publicus's picture

You are all just sour graping at missing the once in a lifetime chance to get RICH!

 

Now let me head off to the Bahamas.

Thu, 05/14/2015 - 22:50 | 6095831 nink
nink's picture

In the US Good News = Stocks go up Bad News = Sticks go up more.  Some one hand them the rule book.  It's now time for buy backs, QE, POMO and all sorts of BTFD incentives.

Fri, 05/15/2015 - 03:43 | 6096209 Laowei Gweilo
Laowei Gweilo's picture

lol i'm happy i bought this stock and not gold

 

can probably buy most of the gold owned by 99 percent ZHers now :P

Fri, 05/15/2015 - 06:52 | 6096372 clymer
clymer's picture

Have to admit that bought a couple of these Baofeng hand held ham radios. 35 Bucks? I was wondering how thay make any money on these.

BTW tyler(s)

typo in this article. It is in fact 'Baofeng'

 

http://qz.com/405666/a-copyright-lawsuit-has-finally-stopped-the-crazy-s...

Fri, 05/15/2015 - 09:03 | 6096690 Stormtrooper
Stormtrooper's picture

They make money on those radios with 50 cent/hour labor. Pretty good units for cheap. Also more reliable communication than FRS for training missions.

Thu, 05/14/2015 - 22:16 | 6095720 Yen Cross
Yen Cross's picture

 Someone is seriously FUCKING with Cable. gbp/usd.

 There's no way this pig should be so bid. Someone is leaking liquidity into that curency. Belgium/Euroclear ~ BIS?

 Someone is leaking excess reservses into cable. The gap from the elections hasn't been closed and the retail numbers are all on CL gains.

 Only 25% of GBP economy is manufacturing. Next week the shit hits the fan.

 I wouldn't be surprised if cable is being spoofed by some dikwad algos.  Who's those assclowns that won every day except one?

Thu, 05/14/2015 - 22:22 | 6095751 seek
seek's picture

I think something's up in general. If we don't see an AU smackdown by this time tomorrow I completely agree that next week is a SHTF week.

Fri, 05/15/2015 - 02:30 | 6096162 Blano
Blano's picture

Who's those assclowns that won every day except one?

Virtu, I believe.

 

Thu, 05/14/2015 - 22:16 | 6095735 Schmuck Raker
Schmuck Raker's picture

What's Mandarin for BTFD?

Thu, 05/14/2015 - 22:23 | 6095756 Yen Cross
Yen Cross's picture

You can tell when algos are spoofing orders, in f/x. The zero lag<>MACD stays constant and the Yurkik indicator gets punched from underneath.(1-5min chart)

  It's so obvios these clowns are ghosting "bids" for the buy side dealers. The dealers have to cover those trades, so they fill the orders.

 

Thu, 05/14/2015 - 22:25 | 6095761 booboo
booboo's picture

The term "those who fail to learn from history are doomed to repeat it" has never been more apropos. If there is one aspect of education that has cheated the younger generations more than anything it is the failure to teach unabashed uncensored and unforgiving history.

Although every generation is afflicted with their own normalcy bias I think it is even more prevalent today. If you were to ask the residents of Dresden in 1938 what there city would look like in 7 years and the vast majority would have told you it would be even more modern and with more residents.

My point? It won't last, nothing does and without a perspective of history people are not given a choice to measure the real risk. Ex farmers and chicken butchers betting it all on black is not going to work.

Fri, 05/15/2015 - 01:50 | 6096137 Your guess is a...
Your guess is as good as mine's picture

I got a job as a headhunter for corporations in China.

Couldn't believe my luck, every time they put a new job up, the guy they were after was standing right next to me!

Fri, 05/15/2015 - 07:43 | 6096459 Downtoolong
Downtoolong's picture

It's all a plot to single out the greatest of the greater fools. They'll be on the target marketing list for baby life insurance, reverse mortgages, and every useless product that once sold through Sky Mall for the rest of their lives.  

Fri, 05/15/2015 - 10:15 | 6097031 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

Even the Bitcoin bubble was less wild !

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