• Solowin Holdings (NASDAQ: SWIN) has been making headlines this week, with its stock price soaring by an impressive 94% since Monday, September 18th, 2023. This surge follows the company’s announcement of their IPO on September 6th, 2023. Despite the lack of recent filings or news updates, the stock continues to experience significant gains, and the trading frenzy shows no signs of slowing down. It’s a puzzling situation, and if you’re following this, you might be feeling a bit bewildered. Interestingly, this kind of rapid and exaggerated performance is not necessarily unusual. We’ve seen similar behaviour with others last summer, AMTD Digital (NYSE: HDK) and Top Ships (NASDAQ: TOPS) to name a couple.

About Solowin Holdings:

Before we get into what’s happening and why, here’s a little background on the company based on the prospectus and “About” section in their latest press releases.

Solowin Holdings is a Hong Kong-based brokerage firm focused on Chinese investors. They offer a wide range of financial products and services through a secure and user-friendly online platform. They are licensed by the Hong Kong Securities and Futures Commission for various services. Their platform provides access to over 10,000 securities and their derivatives on major exchanges like HKSE, NYSE, Nasdaq, Shanghai Stock Exchange, and Shenzhen Stock Exchange. The company is known for its financial strength and technical expertise, serving both individual and institutional investors in Hong Kong and earning recognition from users and industry experts.

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It’s important to note that Solowin is not an operating company, but a Cayman Islands holding company with operations solely conducted by its subsidiary, Solomon JFZ (Asia) Holdings Limited, a limited liability corporation incorporated in Hong Kong.

Does it sound kind of fishy? Maybe… But is that enough to stop you from making a trade based off the intense retail hype we’re seeing during after hours trading on September 21, 2023? We’ll let you decide, but as per usual, always do your own due diligence. Stocks like these could cost you, and come with a significant amount of risk.

Thoughts from Retail:

Upon our initial research, the first thing we noticed was a notable user off Twitter, “MayaTrades” who started talking about the company’s potential earlier this week.

The user has since spoken on multiple occasions about the potential short squeeze the stock offers and suggests that it could continue to trade parabolically tomorrow on September 22nd, 2023. So it could be worth keeping an eye on to track the technicals.

We stumbled upon another user’s testimonial praising Maya’s day trading approach, claiming they’ve made over $15,000 using it. However, it’s essential to keep in mind that such testimonials endorsing various trading strategies are abundant on Twitter. It’s wise to approach these claims cautiously and form your own conclusions based on thorough research and analysis.

The general idea is that the shorts on SWIN are quite substantial, according to one user off Twitter, it’s 150% of the entire float and the stock hasn’t even seen the start of the squeeze yet. If it’s already gained over 90% in four days, I’m sure you can do the math on what this user is suggesting could happen next.

“Spec play that I have a lotto sized position in. It’s China. Cashed up for 5 years, allegedly. 2M float / 14M OS. I believe insiders will run it at some point, so whether it’s weeks or months, I’m holding a small position as it mirrors the other crazy China IPO runners. Currently $2.65” stated MayaTrades on September 14th, 2023.

We’re continuing to see the narrative of “No reason to close position with the strength SWIN is seeing into close” and that it’s seen “Unbelievable strength in a bloody market”. If you look at the technicals, you can see that it flagged into close yesterday and continued with the same pattern today.

Many also believe that the company has not only overcome previous resistance levels, but also surged beyond expectations in after hours trading September 21st, 2023. The stock just recently surpassed the $5 mark, leaving the future trajectory in the upcoming trading days quite unpredictable. This rapid movement follows a trend of consistently breaking through crucial resistance levels.

Once again, it’s important to acknowledge the speculative nature of these trades, with the possibility of a complete loss of investment. However, given the heightened retail interest surrounding the stock this week, we found it relevant to take note, delving into the factors and conversations driving this wave of excitement.

Short Squeeze:

By now, it’s safe to assume that most people are familiar with the concept of a short squeeze. We’ve covered it in several previous articles. However, if you’re new to the market or unfamiliar with our daily articles, here’s a brief explanation below:

A short squeeze is a market phenomenon where the price of a stock or other asset increases rapidly and significantly. This can be triggered by a surge in demand for the asset, often caused by a large number of investors who had bet against the asset (short sellers) rushing to buy it to cover their positions and limit their losses.

Short Selling: Short selling is a trading strategy where an investor borrows shares of a stock from a broker and sells them on the market, anticipating that the stock’s price will decline.

Betting Against the Stock: Short sellers profit when the stock price falls. They aim to buy back the shares at a lower price later to return them to the lender (broker), pocketing the difference.

Potential Losses and Squeeze: However, if the stock price starts to rise instead of fall, short sellers face potential losses. As the price climbs, they may feel pressured to buy the shares back to cut their losses, adding to the buying pressure in the market.

Buying to Cover: To exit their short positions, short sellers buy shares (covering their shorts) on the open market. This buying activity further drives up the stock price, as demand increases.

Feedback Loop: As the stock price rises due to increased buying from short sellers trying to cover their positions, it can trigger more short sellers to cover, creating a feedback loop of buying and price escalation.

Rapid Price Increase: The sudden increase in demand can lead to a sharp and swift rise in the stock price, catching short sellers off guard and forcing them to buy at higher prices to close their positions.

Magnitude and Duration: The extent and duration of a short squeeze can vary. It could be a short-lived spike or a more prolonged increase in the stock price, depending on the level of short interest, overall market conditions, and the availability of shares for shorting.

Short squeezes often attract significant attention and can result in substantial gains for those holding long positions, while causing substantial losses to short sellers, further fueling the market dynamics.

We will update you on SWIN when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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NeuBase Therapeutics (NASDAQ: NBSE) saw significant interest and gained a whopping 106% after the company announced a 20% acquisition of their shares by  Symetryx Corporation. To add to the excitement, Symetryx is now urging Neubase’s Board of Directors to consider issuing a special dividend of $1 per share to the company’s shareholders.

Symetryx has acquired these shares through open market transactions and intends to initiate discussions with Neubase’s management to collaboratively determine the best course of action for the benefit of Neubase shareholders. It is important to note that Neubase has previously disclosed that it is currently in the midst of a strategic review of its operations.

$NBSE form 3 just out: https://t.co/iGZKPNFEBQ

Symetrix Corp owns now more than 610k shares – which is around 30% of the company. 2.2m float now down to 1.5m – I still believe that they want to take over the company to grab 5.2 shares in cash. pic.twitter.com/ghcHowY8mZ

— LupinTra (@Runki10top) September 1, 2023

There’s limited information about Symetryx online. It appears to be focused on venture capital and was founded by Barry R. Shiff back in 1990. According to his LinkedIn, they specialize in technology, management, venture capital, and real estate development. For more information please reference their website.

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Symetryx has taken note that Neubase reported a cash balance of approximately $14.7 million for the quarter ending June 30, 2023. Symetryx believes that Neubase’s cash position positions it as an attractive candidate for a merger, and they argue that issuing a $1 per share dividend would not diminish this attractiveness. They emphasize that Neubase shareholders initially invested in the company because of its promising work, not as a passive holding. With the ongoing strategic review, Symetryx sees offering shareholders a dividend while exploring merger opportunities as a mutually beneficial approach.

Symetryx acknowledges that they have engaged in discussions with Neubase, and Neubase has demonstrated openness to continued dialogue. Symetryx expresses confidence in Neubase’s actions to date. They believe that during similar strategic reviews, many companies deplete their cash reserves, and they intend to work closely with Neubase to ensure prudent utilization of the company’s assets to maximize shareholder value. Symetryx asserts that the Board should consider all available options, including mergers, acquisitions, special dividends, or winding down the company with capital returned to shareholders.

$NBSE Wheeeeeee what a rush, nailed the dip buy after that huge run, got out as quick as I could since it ran up over 70% already. These runners are fun. @timothysykes pic.twitter.com/z7AKILCtAP

— Rostam (@02Millionaire) September 6, 2023

As the largest shareholder of Neubase, Symetryx is eager to contribute to the review process and safeguard shareholder interests. They are optimistic that their involvement can lead to substantial value creation for Neubase shareholders.

SPECIAL NOTE:

This news release presents Symetryx’s current perspectives on Neubase Therapeutics Inc.’s securities’ value and potential actions that Neubase’s Board of Directors may take to enhance shareholder value. Symetryx’s views are based on their analysis of publicly available information and reasonable assumptions. However, there is no guarantee that the information and assumptions are accurate or complete. Actual performance and results of Neubase may differ significantly from Symetryx’s assumptions and analyses.

$NBSE THE BEST TO EVER DO IT?!!?!

WHO GRABBED THIS ONE!! https://t.co/JzLy0fJHvz pic.twitter.com/RUwLthMCCG

— Tiger Line Trading (@TigerLineTrades) September 6, 2023

Furthermore, the release mentions the size of Symetryx’s current holdings of Neubase shares, but it should be noted that Symetryx’s views and holdings may change at any time. They may take various actions regarding Neubase without providing updates or notice, except as required by law, including selling some or all of their Neubase shares without prior notification.

We will update you on NBSE when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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PhenomeX Inc. (NASDAQ: CELL) soars 136% as the company announced that they’re finalizing a deal where Bruker Corporation will buy PhenomeX for $1.00 per share in cash. This purchase values PhenomeX at around $108 million. PhenomeX is a company that specializes in studying how individual cells work. They provide tools for researchers to understand how cells function and how genes affect their behavior.

PhenomeX was created in 2023 by merging two other companies, Berkeley Lights and IsoPlexis. They currently have more than 400 of their research instruments in use. These instruments help researchers study single cells using various tools like software and chemicals. One of their main tools is the Beacon Optofluidic system, which allows scientists to quickly analyze thousands of single cells at once, helping them understand how cells function and relate to their genetic makeup.

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Dr. Mark R. Munch, the head of Bruker’s NANO Group, said that PhenomeX’s unique tools are speeding up discoveries in cell biology research, which is important for areas like making better medicines and therapies. This acquisition is a big step for Bruker, helping them get into the field of studying single cells, which matches their strategy of becoming a leader in new biology research methods.

We didn't have @bruker as an acquirer for $CELL PhenomeX, but it has just been announced. https://t.co/wkHBHD5zWn https://t.co/9LZ0sZG6bl

— Albert Vilella (@AlbertVilella) August 17, 2023

The deal is expected to close by the end of 2023, as long as everything goes as planned. Once the deal is done, PhenomeX will merge into a subsidiary of Bruker. Any shares of PhenomeX that were not tendered in the tender offer will be converted into the right to receive the same per-share consideration as paid in the tender offer. 

$BLI $CELL $ISO @ScorpionFund hit this out of park with this slide pic.twitter.com/BwyXhYBpuL

— mets17 (@adar170) August 17, 2023

In simpler terms, if some shareholders decide not to sell their shares during the offer, they won’t be left out. They will still receive the same price for each share as those who did sell their shares. This ensures that all shareholders are treated fairly and receive the same deal per share.

Bruker acquire phenomex (let’s face it, we still call ‘em #BerkeleyLights. I reckon their board and c suite may be feelings a bit relieved it’s all over.

Some random thorts:

— Genomics Cow (@GenomicsCow) August 17, 2023

About PhenomeX:

PhenomeX is focused on helping scientists better understand how cells work, which could lead to improvements in health. They have tools that let researchers study cells in detail and quickly, which is valuable for medical and biological research.

About Bruker Corporation:

Bruker makes high-tech instruments for scientific research. They work closely with customers to develop tools that help scientists study things like cells, molecules, and materials. They have a range of products for different research areas, including biology, medicine, and industry.

We will update you on CELL when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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