Okay folks, so I have a fast one for you today. What is going on with Madame HKD which shot up randomly from 45 to 287 today for a 537 increase before selling off into clothes. What happened here? and will there be more runs in the future? After all, if you have been following this story since we covered it back in the mid-summer HKD had originally jumped from around 12 to 2555 bucks and the span of three or four weeks. That is indeed a casual 200x.

So even if you get just a smaller version of that a little pansy version of that, that could potentially be something to know about, right? So context: HKD is the ticker for Amtd Digital, which is based in Hong Kong and is a Fintech company. And if you pull up their mission statement in their recent SEC filings, it says: quote: our mission is to act as a fusion reactor for for the best entrepreneurs and innovative ideas, fusing synergistically all elements within the Amtd Spider Net ecosystem, using digital means, harnessing and magnifying the power from each partner to create a force with meaningful and influential, social, technological and economic impact. Fusion Reactor Synergy force of meaning and influence. Even the buzzwords have their own buzzwords.

This mission statement reminds me of when I help my friend write his Tinder Bio Looking for that special woman to fuse meaningfully with in a synergastic way. student of the world and of course, very nice muscles. Story short, he didn't get too many dates I'm not known for my dating advice. Point is, it's kind of hard to really pin down what this company does.

They have a bunch of branches and the branches themselves are kind of very difficult to navigate, but the annual revenue that they report overall is about 25 million dollars. You compare that to all of the other companies that had similar value situations when Amtd was at Peaks a couple months back. they have around 46 to 355 billion in annual revenue, not 25 million. You look at that sales multiple compared to the other ones.

Everything else is like two or three. And then you got Amtd at about 8 000 and 8 000 multiple yet. Madam Amtd Digital managed to play with the big boys and today, yes, once again, out of pretty much nowhere. HKD added about 25 billion plus dollars to its market cap on no apparent news.

It ran so incredibly fast this morning that it triggered so many halts that I couldn't even get them all on the same page I Counted more than 10. And to really understand how just how the stock can run this much out of nowhere, you really have to understand the relationship between market pricing and liquidity. Market price is the amount you have to pay for something if you want it right now, and liquidity is the availability of that thing. If you have a bar that has decided that they absolutely just have to have a share of a specific stock, then they will go out onto the market and bid up prices to whatever level they are able to find a seller at, and then whatever price they've bought that chair at becomes the new market price.

That Dynamic on a much larger scale is what allowed HKD stock this summer to surpass the market cap of Goldman Sachs All of the sacks of Goldman were passed here and with HKD today you went from the stock trading at an average daily volume of under 40 000 to all of a sudden today trading at a daily volume of 1.5 million. What happened? Well, it is impossible to say 100 for sure, but when you have a stock that trades this a liquid, it's extremely difficult for Market participants and spec funds to move in and out of any position without causing a massive run on the stock in One Direction or the other. So likely what happened was you had a whale wanting to go and buy shares For whatever reason after HKD hit lows yesterday and the will probably decided to start submitting orders at some point this morning, they probably tried slowly submitting multiple orders under the usual daily volume amount, planning on buying shares very very slowly over the coming weeks in order to avoid spiking the price. But then as the order was fulfilled, it turned out that it was still too many shares bidding for the very, very small pool of Supply which then skyrocketed the price and gained the attention of speculators looking to trade the stock.

Knowing that in the past, it's been a huge Runner that's pretty much the overall synopsis on what likely happened today now: I Know when stocks move irregularly, especially these types of stocks. The first cry is that m word manipulation and it is certainly possible, if not probable, that an original whale or combination of whales that bought in earlier today tried to trigger a bigger frenzy on the stock and sell out at higher levels. But keep in mind that pre-ipo shareholders and Company insiders are still subject to lockup agreements that keep them from being able to sell until January So if it is manipulation here, it's likely to be from your outside spec funds. But I will admit at the same time that there's also this Dynamic where if you were, say, an honest whale trying to take a position in this for I don't know financing agreement terms or because you want to Venture Capital stock or for whatever reason, you want to diversify into the stock, well, it's very, very difficult to do so without spiking the price because it's so illiquid and it's so hard to find.

AKA It's so hard to find shares to buy if you want any sort of meaningful position in this, it's going to cause the price to go up a lot. So it's so eLiquid that you can't even buy shares efficiently and it's so closely watched that even if you were willing to buy in and just bid up the price a little bit, it's going to start skyrocketing a lot faster because everybody is watching it. Quite frankly, if you are a whale, it's pretty much impossible to do anything with the stock without causing a massive move in One Direction or the other. So it is possible that some whales, some were just screwed up and took too much of a position too fast and all of a sudden boom boom pow pow.

But my take on this as a trade? well, even as a short-term hype trade I would say this is a hard one. It'll almost certainly have more runs, but it's too dirty of a play. Why? Well, because manipulation or not, its liquidity is such an issue that not only could you have a hard time getting in and out during some of the more quiet trading days, but during the hot trading days like you saw today, the stock is going to suffer from numerous halts. 10 plus halts perhaps.

And because of the liquidity situation here, when the stock unhults, it can turn against you so fast. And sure, there's going to be halts on the downside, too. But still, it's very, very difficult to get in and out of a position when the stock halts constantly and there's not much liquidity on your average day. The liquidity problem, both on a halt basis and on an overall fulfillment of orders basis, is a big issue and a big detriment to folks that want to have proper risk management, want to have a clear trading plan, and want to be able to ride momentum that can last.

And while I am not one to shite on risky momentum plays, if you do again, have risk management, a clear strategy, and tight expectations. In this case, on some level and I don't have proof of this, but on some level it just looks like a bait and trap type of play. It looks like someone somewhere some whale out there is trying to bait people in and cause a frenzy on a low liquidity stock so that they can see massive appreciation on their shares. And sadly, they don't care about how much Synergy and fusional connection that you feel with the stock.

Again, just my opinion. Lots of people can make money trading really really. Sketch plays of course, but there comes a level where it's just like, okay, that's just too much and this is the level for us. Do I see more momentum happening in the coming days and weeks? Yes.

I Think that it's almost impossible not to imagine a situation where this sells off and then you get another momentum rally, but again because of the reasons I Just mentioned I Don't think that it's worth the trouble. Anyways, folks that caps off the video, make sure to get your up to 13 free stocks with Vumoo down below. Make sure to hit that ravishing like button and subscribe. And if you want to learn more about zip Trader you I will put a link to that below as well.

Have a good one folks and I will see you in the next video.