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ArtGo loses its marbles | FT Alphaville


You guessed it. A different day in Hong Kong, a different stock gapping down 98 for every cent.

This morning was the flip of marble miner ArtGo Holdings, which acquired contaminated with area virus sudden equity collapse syndrome immediately after MSCI announced it would not be including the stock in the MSCI China index, as was at first planned.

Just glance at this share price chart. Completely regular response:

It follows a somewhat spectacular 3744.16 per cent operate in the stock above the earlier year. By Wednesday’s close, it had a sector capitalisation of HK$46bn, a shade beneath $6bn. When it was halted these days, its sector cap was HK$688m or $88m.

Yep, that’s a 98 for every cent fall. Converse about your all time backfires.

The operate was curious not just because ArtGo’s economics did not discernibly enhance of late, but since of precisely when thrilled punters made a decision to invest in the inventory.

As a good friend of Alphaville pointed out to us today, buyers seemingly favoured obtaining in an hour-very long window involving 3pm and 4pm each individual investing working day.

So Alphaville determined to run a minimal experiment. What would your returns have been in the 120 buying and selling times up to November 12 if you’d only acquired a share at 3pm, and sold it 50 minutes later on? Prior to repeating the trick with your amassed gains the future day, and the up coming, and the future.

As it turns out — you’d have carried out really nicely, generating just 218 per cent.

Here’s the information in chart form:

Line chart of Artgo Holding's cumulative returns between 3-3.50pm up to November 12 (%) showing The magic hour

We also compared these 50 minute returns with the 100 shares in the HK CSI Mid Cap Index and the most effective performer was China Agri-Industries Holdings (HK 606) with a return of just 21 for every cent.

Famed Hong Kong fairness vigilante David Webb commented on ArtGo again in September, noting its crazy valuation and concentrated shareholding at a small quantity of money intermediaries (brokers and banking institutions).

To say the least, we’re tempted to get a search at this lot when we’re back following 7 days.