Market Overview

Market Blows Off TheStreetSweeper's MGT Warning

Market Blows Off TheStreetSweeper's MGT Warning

Less than one month ago, MGT Capital Investments Inc. (NYSE: MGT) was trading under 23 cents per share. In Tuesday’s session, thanks to a perfect storm of news, short covering and market speculation, shares climbed as high as $4.98. MGT has become one of the biggest home runs of the year in 2016, returning more than 1,740 percent year-to-date.

The big move all started when computer antivirus pioneer John McAfee was named the new CEO of MGT on Monday. In an interview, McAfee said that the MGT’s new focus would be on “security and privacy,” and that its first product will be mobile anti-spyware program D-Vasive.

MGT Capital short-sellers are getting torched by the stock’s meteoric rise. One MGT short-seller, The StreetSweeper, says that McAfee is all smoke and mirrors.

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“The former billionaire — who has watched his fortune dwindle to the point that he’s a mere millionaire — is hyping MGT,” TheStreetSweeper said. “It’s no surprise this desperate duo — McAfee and company — are promoting the heck out of McAfee’s old ‘D-Vasive’ asset. But it seems they can hardly give D-Vasive away.”

TheStreetSweeper concluded its warning with a note that it will soon be releasing a full report on the risky nature of MGT.

MGT’s stock is trading off its highs of the day, but it still up 38.85 percent in Tuesday’s session. It seems that MGT bears are not overly concerned with what TheStreetSweeper report will reveal.

Disclosure: The author holds no position in the stocks mentioned.

Latest Ratings for MGT

Aug 2016Initiates Coverage onBuy

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