In today’s briefing:
- Magic Empire Global: The Second Biggest Bubble in 2022
- Chongqing Hongjiu Fruit IPO: Not Very Fruitful
Magic Empire Global: The Second Biggest Bubble in 2022
- Magic Empire Global (MEGL US) is the second biggest bubble in 2022, after AMTD Digital (HKD US).
- We believe there are two major reasons for MEGL’s surging share price including US retail investors’ buying frenzy post AMTD Digital and the “scarcity effect” of new Chinese IPOs.
- Sell MEGL as it makes little sense to put any of your valuable amounts of capital into this stock. The bubble has already started to burst on MEGL.
Chongqing Hongjiu Fruit IPO: Not Very Fruitful
- Chongqing Hongjiu Fruit (CHF HK) focuses on managing the entire supply chain for quality fruits grown in China, Thailand and Vietnam.
- The company has a portfolio of 49 fruit categories and has filed for an IPO on HKEx and plans to raise proceeds of US$300m.
- CHF’s earnings growth is slowing down while margins are trending downwards and the company’s cashflow burn is increasing
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