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Penny stock selloffs fuel concerns over pump-and-dump scams – report. (00:21) Google (GOOG) (GOOGL) agrees to $36 million fine over anti-competitive deals with Australian telcos. (01:50) Air Canada (OTCQX:ACDVF) cabin crew defy back-to-work order, vow to keep striking. (02:39)
This is an abridged transcript.
Investors lost billions of dollars on certain U.S.-listed Chinese stocks that tanked soon after being promoted on social media.
The Financial Times has reported that this raises concerns over potential pump-and dump scams.
The report mentioned seven stocks – Concorde International (NASDAQ:CIGL), Ostin Technology (NASDAQ:OST), Top KingWin (NASDAQ:WAI), Skyline Builders (NASDAQ:SKBL), Everbright Digital (NASDAQ:EDHL), Park Ha Biological Technology (NASDAQ:PHH) and Pheton Holdings (NASDAQ:PTHL) – that fell more than 80% over a few recent trading sessions.
According to the report, there is no suggestion that these companies were involved in the unusual stock moves, but analysts and investors say the moves appear to resemble pump-and-dump scams.
According to predictive analytics firm InvestorLink, the stock declines wiped a combined $3.7B off their market value. Notably, before their sudden declines, all seven stocks had surged after being promoted on social media apps like WhatsApp.
FT also mentioned Regencell Bioscience (NASDAQ:RGC), whose shares surged nearly 10,000% YTD. In June, SA analyst Atticus Analysis warned that Regencell would likely follow the boom-and-bust pattern of other Chinese/Hong Kong names.
Last month, the Federal Bureau of Investigation noted victim complaints referencing ramp-and-dump stock fraud increased 300% from a year ago.
Google (NASDAQ:GOOG) has agreed to pay a fine of A$55 million ($35.8 million) in Australia after the country’s consumer watchdog determined that it had harmed competition.
According to the Australian Competition and Consumer Commission (ACCC), Google paid Telstra and Optus to pre-install Google Search on Android phones they sold to consumers, but not other search engines.
The regulator said this arrangement effectively shut out rival search engines and harmed market competition.
This understanding was in place between December 2019 and March 2021.
The agency said, in return, Telstra and Optus received a share of the revenue Google generated from ads displayed to consumers when they used Google Search on their Android phones.
Air Canada (OTCQX:ACDVF) (TSX:AC:CA) flight attendants remain on strike this morning even after being ordered to return to work.
The Canadian Industrial Relations Board (CIRB) ordered 10,000 flight attendants at Air Canada and Air Canada Rouge to return to work by 2pm Sunday.
However, the Canadian Union of Public Employees said it would challenge the order, saying it is “blatantly unconstitutional.”
This is the first walkout since 1985 and it follows months of failed contract talks and has already forced the suspension of roughly 700 daily flights, stranding more than 100,000 travelers.
A note at the top of Air Canada’s website says all flights are canceled and travelers should not go to the airport.
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Sitio Royalties (STR) holders will hold vote on sale to Viper Energy (VNOM).
Dow, S&P and Nasdaq futures are muted after Wall Street’s major averages ended mostly lower on Friday, as investors were waiting for updates from the Donald Trump-Vladimir Putin meeting, which eventually ended with no agreement about the resolution of the war in Ukraine. Trump, however, said “great progress” was made in the meeting. President Trump will meet with European heads of state alongside Ukrainian President Volodymyr Zelensky in Washington today.
Crude oil is up 0.6% at $63/barrel. Bitcoin is down 2.2% at $114,000. Gold is up 0.3% at $3,348.
The FTSE 100 is flat and the DAX is up 0.3%.
The biggest movers for the day premarket: Dayforce (NYSE:DAY) +13% – Shares jumped after Bloomberg reported that Thoma Bravo is in advanced talks to acquire the HR software provider in a deal that could be announced in the coming weeks, though discussions may still falter or draw rival bids.
On today’s economic calendar:
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
