Mechelany Advisors’ MODEL PORTFOLIO has been running in a fully transparent way since January 1st 2014. Its Purpose is to implement the conclusions of our research analytical process in a portfolio managed using institutional liquidity, diversification, risk management and asset allocation processes. In our TRANSACTION UPDATES we keep our readers informed in real time of the transactions in our MODEL PORTFOLIO
In the months of May June and July, most Chinese companies pay their annual dividends and some of our stocks are high yield companies. We are recording the dividend payments as and when and sometimes with a little bit of delay.
Today we also decoded to initiate a small short position in GAMESTOP (GME US ) at USD 272 for the first time since the “meme” stocks have gone wild after having ignited the same on AMC Entertainment last week.
The U.S. Securities and Exchange Commission announced today that it was scrutinizing markets for signs of manipulation and other misconduct as AMC Entertainment Holdings Inc. and other meme stocks continue to surge.
“SEC staff continues to monitor the market in light of the ongoing volatility in certain stocks to determine if there have been any disruptions of the market, manipulative trading or other misconduct,” the agency said today in a emailed statement. “In addition, we will act to protect retail investors if violations of federal securities laws are found.”
AMC, the movie-theater chain’s wild rise is happening despite the questionable questionable fundamentals that we have highlighted, prompting concerns among regulators that investors could be sitting on substantial losses if the stock plunges.
GameStop is a loss making company that has a 20 Bln Market Cap for a net equity of barely 436 Million and total liabilities of 2 Billion.
The SEC has already said it’s investigating what happened with GameStop in January, with a focus on whether traders were using online message boards to dupe other investors into buying into the rally.
The regulators are now circling over these speculative bubbles and the role of the Social Media in helping a few players to manipulate the markets.
Our short positions in these stocks are small. Nevertheless, these excess are here to be traded actively.
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