MGT Capital: Had To End Bad
As I posted on WhoTrades yesterday, the tweets of MGT Capital's (MGT) new CEO John McAfee assured the market that the soaring stock wasn't a pump and dump. The odd part is that the tweets from the legendary CEO only played into the stock pump. The stock traded up to $5.58 today for an incredible surge from only $0.25 in April.
Despite his past success with McAfee in the cybersecurity space, he is now 70 years old and technically running for president as well. His D-Vasive company that focuses on anti-spy software doesn't appear to have much in sales. The deal involved MGT paying D-Vasive 23.8 million shares and $300,000 in stock. The deal was for 47% of the company making the stock valuation over $275 million at the peak today.
A big key is that McAfee was willing to accept less than 50% of the MGT stock for his company for a value of below $10 million at the time of the deal. Even at the close, MGT has no business trading for a valuation of around $132 million.
McAfee might not be involved in a pump and dump, but the stock will still end bad for people that bought this pump.
Disclosure: No position. Please review the disclaimer page for details.
Despite his past success with McAfee in the cybersecurity space, he is now 70 years old and technically running for president as well. His D-Vasive company that focuses on anti-spy software doesn't appear to have much in sales. The deal involved MGT paying D-Vasive 23.8 million shares and $300,000 in stock. The deal was for 47% of the company making the stock valuation over $275 million at the peak today.
A big key is that McAfee was willing to accept less than 50% of the MGT stock for his company for a value of below $10 million at the time of the deal. Even at the close, MGT has no business trading for a valuation of around $132 million.
McAfee might not be involved in a pump and dump, but the stock will still end bad for people that bought this pump.
Disclosure: No position. Please review the disclaimer page for details.
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