Marble-mining company ArtGo was the world’s best-performing stock of 2019, through Nov. 20, for firms with market values greater than $1 billion.
But its shares tanked 98% in a single morning on Thursday, wiping out more than $5.7 billion in market value before trading was suspended.
The losses came after MSCI dropped its plans to include ArtGo in its influential China index, a development first reported by The Wall Street Journal.
The New York-based firm cited “further analysis and feedback from market participants on investability” for its decision.
ArtGo wasn’t the only Hong Kong firm to wipe out swaths of investor wealth on Thursday. Small-cap company Kasen International Holding crashed 91% after short-seller Blue Orca Capital pushed the stock lower.
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Marble-mining company ArtGo was on track to be this world’s best performing stock worth more than $1 billion. On Thursday morning, however, its shares tanked 98% and the company saw $5.7 billion in market value wiped out.
The Hong Kong-listed stock plummeted after MSCI dropped its plans to include ArtGo in its influential indexes, a development first reported by The Wall Street Journal.
The New York-based firm announced in early November it was looking to add ArtGo to its MSCI China Index. Yet on Wednesday, MSCI noted the company would no longer be added after “further analysis and feedback from market participants on investability,” WSJ reported.
Thursday’s plunge came one day after WSJ published a column detailing ArtGo’s 3,744% gain through the year.
ArtGo’s shares had formed what some experts viewed as a disconnect from the company’s fundamental performance. The share price hit 85 times the company’s revenue, higher than some of the world’s buzziest tech companies. Marble prices haven’t jumped in 2019, and ArtGo’s revenue for the first half of the year was half …read more
Source:: Business Insider