LFIN Crashes After-Hours When CEO Admits "We Don't Deserve This Market Cap"

Update: Much to his credit, Venkat Meenavalli, the CEO of LongFin ventured onto CNBC's FastMoney tonight to explain the exponential rise and somewhat shady acquisition strategy of his company.

Amid an increasingly rapid eruption of words - "I'm a shadow-banking guy" - and rising volume, Meenavalli seemed to struggle to convince the Fast Money skeptics that what he did was above-board, initially attempting to blindside Brian Kelly by arrogantly claiming "you don't understand." However, once it became clear that Kelly not only 'understood' but saw the glaring inconsistencies, the LongFin CEO backed away and admitted "we don't deserve this market cap."

The result is evident...

But don't feel to obad for Meenavalli, he also admitted that he owns 140 Bitcoin.

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Update: We suspect few had looked at the company's balance sheet (note that LFIN had a market cap over $10 billion at today's highs!)...

But now they have, 'all bets are off'...


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Update: And the halts just keep coming...

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Update: After its 7th halt of the day, LFIN reopened and instantly collapsed by over 50%...

And now it is halted again!

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Update: Well that escalated quickly...

The stock is now up over 500% today and has been halted numerous times...


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Having closed last Thursday on its IPO-day at $5.38, news of the acquisition of Ziddu - a blockchain solutions provider (whatever that means in the real world) - LongFin has since exploded to $44.80 in today's pre-market... up 730% in 2 days.

Remember LongFin? an independent finance and technology company. The Company offers commodity trading, alternate risk transfer, and carry trade financing services. LongFin also provides hedging and risk management solutions to importers, exporters, and small medium business enterprises. LongFin serves customers worldwide.

As iBankCoin notes, it has all of the trimmings of wanton degeneracy on an industrial scale.

  • Recent IPO: check
  • Small float: check
  • Shady as heck: check
  • AI company: check

and the cherry on the top...

  • a day after coming public, they announce the purchase of a blockchain company: check

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On Thursday Dec 14th, LongFin launched as a FinTech company that helped with FX hedging (and slipped from its post-IPO open price to close lower)

US-based Longfin Corp., a Fintech company providing Finance and foreign exchange hedging solutions to importers and exporters and SMEs, started trading on Nasdaq from today.
According to a statement issued by Longfin, its Low Latency Network is connected to multiple exchanges and banks across the regions to provide the cheapest Forex hedging and low-cost financing to small and medium-size importers and exporters across the globe.
Longfin Founder Venkata S. Meenavalli said, "We are the first Asian Entrepreneur promoted Reg A+ company under JOBS Act, to list its shares directly in Nasdaq and the second Indian entrepreneur promoted company to list directly in the Nasdaq since 2010"

On Friday Dec 15th, they acquired Ziddue and became the future face of Cyrptocurrency awesomeness...

Longfin Corp. (NASDAQ: LFIN), a leading global FinTech company, announces the acquisition of Ziddu.com, a Blockchain-empowered solutions provider that offers Microfinance Lending against Collateralized Warehouse Receipts in the form of Ziddu Coins.

And with all those buzzwords, why wouldn't it be up 730%!!!!

As a reminder, there are no financials on this company, no reg details on shares outstanding, and no direct evidence of a business model that makes any money?


spastic_colon eclectic syncretist Mon, 12/18/2017 - 12:15 Permalink

owns 11%...........Punch & Associates Investment Management, Inc.     7701 France Avenue South-300, Founded: February 2002. Punch & Associates Investment Management, Inc., formerly Bridgewater Capital Advisors, is an Edina, MN-based independent investment advisory and hedge fund firm founded by Howard Dean Punch and Andrew J. Matysik. The firm is wholly owned by its employees and caters to individuals, endowments, trusts and foundations.  Style Core Value   Edina, MN 55435-5295  Orientation Active    Tel: (952) 224-4350  Turnover Low    Fax : (952) 224-4351  Annual Port. Turnover   25.75%      # of Stocks Held 180      Equity Assests ($MM) 1,131.08      Investor Type Investment Managers    Key Contacts  

In reply to by eclectic syncretist

spastic_colon spastic_colon Mon, 12/18/2017 - 12:20 Permalink

owns 5% Fenimore Asset Management, Inc.     384 North Grand Street, Founded: November 20, 1974. Fenimore Asset Management, Inc. is a Cobleskill, NY-based privately-owned investment advisory and hedge fund firm founded and owned by Thomas Oliver Putnam. The firm manages the FAM series of funds and caters to individuals, pension and profit sharing plans, charitable organizations, corporations and institutions.  Style Deep Value   Cobleskill, NY 12043-4165  Orientation Active   Tel: (518) 234-4393  Turnover Low    Fax : (518) 234-4421  Annual Port. Turnover   13.26%      # of Stocks Held 116      Equity Assests ($MM) 2,489.44      Investor Type Investment Managers    Key Contacts  Contact Name Title Phone  Fox, John Co-Chief Investment Officer 1-518-234-4393  Putnam, Thomas Chairman 1-518-234-4393  Boord, Andrew Principal 1-518-234-1039  Hogan, Paul Principal 1-518-234-4393    

In reply to by spastic_colon

Rhetorical spastic_colon Mon, 12/18/2017 - 18:27 Permalink

We haven't even begun to fuck.Thats nothing. Everything I type is true to the number.I maxxed out 15k worth of CC to buy Crypto.Took out a 10k personal loan as well+3k of my own money. First buy I was up to 36k Then Through fuckups went down to 10k over the course of about a month. Bottom was mid Nov.Now Im back up to 31k,  300% in 1 month.  Feel free to sell now.

In reply to by spastic_colon

Son of Captain Nemo greenskeeper carl Mon, 12/18/2017 - 10:08 Permalink

I almost threw 100 at it just for shits and giggles. Had I done so, I'd be logging in to sell instead of posing this. We all know how this ends.

In a "vacuum"... I'll say it again g c

The only "real money" buying BTC that matters is in Russia, China and Iran which is why the PR to buy it is being played so hard out of pure desperation.

The rest of U.S. (Useless Sinners) are swapping "fiat" for "fiat"!

In reply to by greenskeeper carl

CPL FreeShitter Mon, 12/18/2017 - 13:23 Permalink

Could see the holes in their business plan from a mile away as they attempted to mate a mouse with an elephant.  Looks great on paper, the execution and project managers running it.  -shakes head and rolls eyes-  Oh well, at least they'll learn the hard way like everyone else that there is no magic wand.  Life hands out asskickings just fine.

In reply to by FreeShitter

Give_me_liberty_or Bill of Rights Mon, 12/18/2017 - 09:30 Permalink

You were extremely lucky to have been born in a time and place, to have the ability to be appropriately and fairly compensated for your hard work.  You do not even realize that because you are small minded and self centered.  Most people throughout history have not had that luxury - yet you arrogantly sit on your high horse and preach how others should feel and act.P.S. actually it wasn't even fair.  Your were SPOILED because bretton woods artificially inflated the value of the dollar on the backs of the third world. 

In reply to by Bill of Rights

falak pema HowardBeale Mon, 12/18/2017 - 11:15 Permalink

Keynes's time constrained (Triffin dilemma, Jevon's paradox) compromise the $-gold xchnge (not Bancor) which allowed 30 years of growth based on Pax Americana's industrial and home grown black gold edge; until peak home oil & Friedman inspired monetary economics pulled the plug on government regulation, and voodoo "our money your problem" TBTF hegemony-- enhanced the Mount Everest Saud handshake by the derivatives soup of futures markets of Chicago Metal exchange to all commodity asset classes-- and, by the imperatives of the $ swap constraint on all foreign actors. Hogtied ! So much for invisible hand of fair trade! As the man said : The Monetary SIN of the West of 1971.

In reply to by HowardBeale