New “Notice Regarding Selection as a Loan Margin Trading Issue” from Anycolor’s Investor Relations website. What does this mean?
by ajshell1
New “Notice Regarding Selection as a Loan Margin Trading Issue” from Anycolor’s Investor Relations website. What does this mean?
by ajshell1
13 Comments
Investor Relations page: https://www.anycolor.co.jp/en/ir/news
Link to the document itself: https://ssl4.eir-parts.net/doc/5032/ir_material1/225562/00.pdf
I don’t know much about stocks, so it would be nice if someone could give me some insight.
EDIT: and to be clear, my screenshot captures all the text in the document. It is very short.
I believe this has to do with the Japanese stock markets rules for margin trading. They’re saying the stock will be able to be traded on margin accounts after March 6th.
Margin accounts are basically (with several asterisks) loans you take out from brokerages specifically to trade stocks.
Generally speaking, this would be considered to be a good thing, as it indicates the market thinks the stock isn’t subject to price manipulation due to being too few shares and people actively want to trade it.
I guess…. increased price volatility (price will fluctuate more often), increased liquidity (more trading activity), and more short sellers?
which means the stock traders can experience amazing roller coaster rides more frequently..? (correct me if I’m wrong)
From what I read in the OP screenshot, Anycolor feels that their stock is not liquid enough (the market does not see it as an interesting stock to trade or invest in).
So in this way, they hope this decision can make people more interested in trading Anycolor stock.
Correct me if i am wrong, my knowledge regarding margin trading is very limited.
Translation: PLEASE TRADE OUR (NEGLIGIBLE) STOCK I’LL EVEN SUCK YOUR D-*call drops*
Damage control.
I don’t know anything about stocks but I’m guessing this is more of that “negligible” impact going on?
In simple terms: Increased volatility during a period of decline. It’s a gambit to try and turn things around but if things stay as they are it will accelerate their decline.
Cynically, they’re hoping this will increase the value of their stocks in the short term so they can leverage that stock on loans with which they can then buy other stocks (or possibly kickstart a new business venture entirely) and then use the profits off that to cover the loans while their stock continues on a decline. They also have a lot of stock on their hands that they will want to turn to liquidity given how poorly the stock is performing, but selling right now means their stocks would drop even further (displays low trust in their own business, the opposite of what they hoped to achieve with the now failed stock buyback).
These are some very toxic stocks but there might be enough foolish people on the market to fall for it. Time will tell, but it’s not looking good for AnyColor.
Is this a scam?
Well, those are certainly some of the words I’ve ever read.
How can one go about shorting their stock? Would it even be a sound idea to do so?
A quick lookup on the term “Loan Margin Trading Issue” on Google with quotation shows that it is a term specifically used in Japan (Tokyo Stock Exchange I think), and not anywhere else. Other companies that show up in search result posted basically the same notice, same wordings except for names and dates etc.
[https://www.jpx.co.jp/english/equities/trading/margin/outline/index.html](https://www.jpx.co.jp/english/equities/trading/margin/outline/index.html)
I read through this page. My understanding is that the shares of ANYCOLOR can be borrowed for margin trading effective on 6 March 2024, i.e. traders can now short-sell the stock starting from this date.
Isn’t short-selling when you’re this early stage in the market (Yes, Vtubing is still relatively young) is a stupid idea. Unless you’re never meant to stay in the market in the first place. Then that’s begs the question, “Why Nijisanji even have foreign branch anyway?”.