The ban ended on Tuesday, but two days ago it suffered from black and grey wool grazing, which may have short-term fluctuations in the share price of Pingduo. On Tuesday, the first day of trading after the U.S. stock markets public holiday, Pingduo had a large amplitude. It stopped falling and rose half an hour after opening, with a maximum increase of nearly 6%. The companys share price has risen by more than 32% over the IPO offering price.
This article was first published at 10:46 on January 22 and is now updating Tuesdays closing price.
In 180 days, many things can happen, such as being favored by investment banks, such as being pulled wool by users.
On Tuesday, January 22, last year, after completing the initial public offering on the Nasdaq Stock Exchange on July 26, the half-year stock ban period for Chinas e-commerce platform ended. Insiders and major shareholders of the company finally had the opportunity to sell their shares to cash in. Before the U.S. stock market, Pingduos share price fell more than 7%.
Coincidentally, just before the arrival of the key lifting period, Pingduo encountered black and grey products by means of platform loopholes cotton wool, estimated that the actual capital loss rate is less than 10 million yuan.
Throughout Tuesday, trading fluctuated. Opening fell nearly 4% to a minimum of $23.89; half an hour after opening, it recovered all the losses and rose to a maximum of $26.46, with a maximum increase of 5.9%. But the afternoon gains narrowed sharply, eventually closing up only 0.72% at $25.17, the highest since January 11, 2019.
Since listing, Pingduos share price has risen like a rainbow. Although it has touched a record low of $16.53, it has also risen more than $30 to a high. At Mondays closing price, Pingduos share price was 32.5% higher than the IPO offering price of $19.
According to Morgan Stanley analysis, based on the expected net loss of $479 million in the first quarter of 2019 from non-GAAP in Pingduo, the above loss is a drop in the bucket, and the impact will not be too great. However, this event will have a certain short-term fluctuation effect on Pingduos stock price after the lifting of the ban period.
In the early morning of Sunday, Jan. 20, Pingduo was exposed as a major Bug. Users can get 100 yuan no-threshold vouchers, and not rush to buy, but no-threshold vouchers. The vouchers can be used all over the market (except for special commodities) with a validity period of one year.
After the Bug was discovered, a large number of users flocked to Pingduo and began to grab wool vigorously. At that time, there was a rumor on the Internet that the big Bug could bring about a loss of 20 billion yuan overnight for the company. But Pingduo later refuted the rumor.
With the fermentation of the event, more than 9:00 a.m., the 100 yuan threshold-free coupons were taken off the shelves, and all the unused coupons were taken off the shelves before.
At 12:55 noon on the same day, Pingduo official response said that this is a BLACK-GREY gangs using platform vulnerabilities for illegal profit-making activities, the company has the first time to repair the vulnerabilities and report to the public security organs.
On Monday, Jan. 21, Quito issued another statement saying that after the incident, the company promptly reported the case to the public security organs. At present, the public security organs are investigating, because of the huge amount of money involved, it is expected that the suspected black-and-grey production gangs will be investigated for criminal responsibility for fraud and huge improper interests.
However, it is worth noting that many foreign investment banks are quite optimistic about the number of competitors in recent years. Morgan Stanley, in its research paper on Wednesday, January 16, gave Pingduo an additional rating and set a target price of $29. Credit Suisse also gave Pingduo a buy rating at the end of November with a target price of $26.
In terms of employment performance, it is not uncommon to spell too much. According to the three-quarter report published on November 20 last year, Pingduos revenue in the current quarter was 3.37 billion yuan, up 697% and 24% year-on-year; the average monthly number of mobile clients on the platform was 231.7 million, up 226% year-on-year, an increase of 37 million over the previous quarter.
Source: Editor-in-Charge of Wall Street: Yao Liwei_NT6056