MGT Capital Investors Wary Of Claims Of No Wrongdoing
MGT Capital Investment Inc. (NYSE: MGT) shares are trading lower by $0.78 (24 percent) at $2.66 in Monday's session. The catalyst for the sharp decline is a report from the company that it has received a subpoena from the SEC.
The company is headed by controversial technology pioneer John McAfee, whose wealth was estimated at $100 million after the sale of his anti-virus program bearing his name. It's rumored that much of his fortune suffered in the global crisis of 2007-2008.
McAfee has also had several brushes with the law enforcement officials when he resided in Belize following the losses incurred during the global crisis. Following disputes in Belize and Guatemala, he returned to the U.S. in 2013.
In order to quell investors worries, the company said there is no indication "the company is or will be the subject of any enforcement proceedings."
Whether it's the subpoena from the SEC or McAfee's checkered past, investors aren't waiting to find out if in fact the company may be subject to any enforcement proceedings. After a lower open, it didn't trade one penny higher than that print and has continued to make new lows for the session.
The issue was left for dead in January of this year, when it bottomed at $0.15 and somehow rallied to $5.58 in May.
If you're looking to bottom pick in this market, this issue may be one investors want to avoid.
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