Is This The Next Random Chinese Stock Set To Explode?

When something works that amazing…you better believe traders are on the lookout for the next gem... [Image] Rando Chinese stocks have been absolutely on fire lately. Who can forget TOP Financial Group (NASDAQ: TOP) that went up 1,000% in 24 hours…or GD Culture Group (NASDAQ: GDC) going from $2.90 to $44 in a single day…earlier this month. When something works that amazing…you better believe traders are on the lookout for the next gem. And apparently promoters are too… I just got an email about a random Chinese stock in the financial sector. Normally, I would ignore such trash…but with so much action going on in this space it’s my duty to tell you about it. The stock is AGBA Group Holding (NASDAQ: AGBA), a stock that was trading above $5 just a few weeks ago. Will this latest promotion pump it up one more time? AGBA Group Holding (NASDAQ: AGBA) - 1-month trading range: $1.41 - $5.37 - Typical average daily volume: 924,140 - Float: ~ 5.7 million AGBA Group’s Business AGBA claims to be a one-of-a-kind wealth and health platform. They have a B2B platform, offer healthcare and wellness services, fintech businesses, as well as financial advisory services. [1683728798--yppkyy.png] Source: [AGBA Investor Relations]( The company’s platform is trusted by over 400,000 individual and corporate customers. Its partners include Invesco, JPMorgan Asset Management, Franklin Templeton, and Blackrock to name a few. The firm’s wealth management partners include HSBC, Cigna, and AIG. Fun Fact: Insiders own 90% of the company and 2.2% is owned by institutions. Last month AGBA announced they would be acquiring Sony Life Financial Advisors, but terms of the deal were not disclosed. I’m not sure how legit AGBA is, everything I read about them on their website and in their press releases sounds flaky or explained poorly. Now, that could be because the company’s content was translated to English and it reads bad…or they just hired a crappy writer to make their website. Only way to tell is really by looking at their financial statements. Financials [1683728798--76tfn3.png] Source: [Stockanalysis.com]( The company started trading on the Nasdaq in 2022, which unfortunately gives us limited data to work with. And boy is it all over the place. First, the company does generate revenues. In fact, it’s more than doubled in two years, going from $14 million in 2020 to $31 million in 2021. The company’s income was $119 million in 2021 but in 2022 it dropped to -$44.5 million. Its EBITDA margin went from 1050% in 2021 to -143% in 2022. And its free cash flow margin went from -18.8% to -65.2% during the same period. There’s no way anyone is looking at this small financial data set and getting excited about this company. But to be fair, the more obscure the company is the better…at least for these Chinese stocks. Just as long as they play the game. And it appears that AGBA is doing a solid job. Just last month the company announced it was initiating a share repurchase program of up to 1 million shares. That’s very bullish for any company, especially a low float like AGBA. Promoter Activity AGBA was brought to my attention on May 8th, in which I received two emails from one promoter. Here were their highlights. - Tripled revenue from 11.4 million to $31.0 million from 2021 to 2022. - AGBA is the largest independent financial advisor in Hong Kong and the largest healthcare brand in Hong Kong - Trusted by over 400,000 individual and corporate customers - Guiding higher projected revenues over the next three years - Share repurchase agreement Some of it sounds bizarre. Isn’t Hong Kong one of the major financial centers in the world? How on earth can AGBA be the largest independent financial advisor in the area? Sounds a little suspect if you ask me. The projected revenues is what it is. I mean the company’s earnings have been so erratic, it’s hard to believe they can project the future. The promoter received $17,500 for a two day awareness campaign. Straight to the Facts When it comes to trading Chinese financial stocks only two things matter. - The less we know the better. Stocks that move +100%, +300%, or even +1000% aren’t moving on the fundamentals. - The float must be low. AGBA does have a low float and its business is hard to understand. Which are key ingredients for a major squeeze. But I won't go out and buy shares tomorrow. These stocks tend to move together. That means if one of them goes, there is a good chance that others follow. I would wait till they show some life again before considering taking any action. Always at your service, Baron Von Stocks Disclosure: I am not a fin-an-cial adviser. All potential percentage gains are based on from the low to the high of day. Prime Tech Stocks full disclosure is to be read and fully understood before using Prime Tech Stocks website, or joining Prime Tech Stocks’ email or text list. By viewing Prime Tech Stocks website and/or reading Prime Tech Stocks email or text newsletter you are agreeing to Prime Tech Stocks full disclosure which can be read at www (dot) primetechstocks (dot) com/disclosure/ Make sure to always do your own research and due diligence on any day and swing profile brought to your attention. Prime Tech Stocks owned by Red Oak Media Group LLC, a limited liability company. Red Oak Media Group's full disclosure document can be read at www (dot) primetechstocks (dot) com/disclosure/ We do not own any shares in PRPH. 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