[HN Gopher] Single New Jersey deli boasts a $105M market cap, de...
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Single New Jersey deli boasts a $105M market cap, despite $14K in
sales
Author : onetimemanytime
Score : 50 points
Date : 2021-04-16 16:58 UTC (5 hours ago)
(HTM) web link (markets.businessinsider.com)
(TXT) w3m dump (markets.businessinsider.com)
| arisAlexis wrote:
| Right now dogecoin, an abandoned project approaches the market
| cap of Space X. The deli is really not surprising anymore.
| onetimemanytime wrote:
| More details: https://www.cnbc.com/2021/04/15/hometown-
| international-nj-de...
| cheaprentalyeti wrote:
| Huh. No Tony Soprano jokes?
| adflux wrote:
| I really think the market is due for a culling. All around me I
| see people invest in stocks, pennystocks and crypto. I've had to
| explain to people, who own a few thkusands in crypto, about what
| a wallet is and how it works. I see people who don't know the
| difference between debit and credit tell me why Tesla is such a
| great buy. People who don't know who Adam Smith is. Then there's
| a few hundred thousand people "investing" (gambling) through
| /r/wallstreetbets. In my country never have more houses been
| purchased by investors than ever before. In my personal circle I
| see people jump through the craziest hoops to get the maximum
| mortgage possible. Everyone is just leveraged to the tits and I
| feel like we're in crazy town now. Wonder what happens when the
| bond yields rise... Or maybe it's just me and I've spent a bit
| too much time on the internet.
| hprotagonist wrote:
| Long ago, when I was a child, there was an excellent pizza
| restaurant in the nearby town. Food was great, but it was kind of
| run-down and not advertised at all; sometimes it would be
| inexplicably closed for a week, sometimes not.
|
| One very hot summer, when we did not want to be cooking in the
| kitchen without AC, we had pizza for dinner one night. The next
| night it was even hotter, so we did the extraordinary thing (for
| my family) of having takeout two nights in a row.
|
| Well, when dad got to the pizza place to order a pizza, he
| discovered that it had been converted into a coin-op laundromat,
| literally overnight.
|
| Moral: mob front businesses are _weird_ ; enjoy the surprisingly
| cheap pizza while it lasts!
| EMM_386 wrote:
| > One of the Macau companies, VCH Limited, in May 2020 entered
| into a consulting agreement with Hometown International, the
| filing said. "Pursuant to this agreement, VCH was engaged as a
| consultant to the Company, to, among other things, create and
| build a presence with high net worth and institutional
| investors," Hometown said in its annual report.
|
| This is not exactly just a deli in NJ. Although it looks like
| one.
|
| https://www.cnbc.com/2021/04/15/hometown-international-nj-de...
| mxuribe wrote:
| Maybe this joint is a "laundromat", and not a deli? ;-)
| neaden wrote:
| Serious question, could this be money laundering, bribery or
| something else shady? The fact that the owner made $2.5 Million
| on a stock sale for a seemingly worthless business seems like it
| could have some less than legal explanations.
| mimikatz wrote:
| My guess was defrauding Chinese as they were the major
| investors in it.
| ralph84 wrote:
| More likely the Chinese investors needed a way to evade
| capital controls in China and this was the vehicle.
| neaden wrote:
| How would this work for them? Is it easier if you are a big
| Chinese investor to buy stock in a small American company
| than to purchase it in a F500?
| plorkyeran wrote:
| It's basically reverse money laundering to turn money
| that the government knows about into money that the
| government doesn't.
|
| 1. Make a really bad investment in an overvalued small
| company.
|
| 2. Company passes some portion of the money back to you
| in a way that the government doesn't know about.
|
| 3. Company goes bankrupt.
|
| 4. The party knocks on your door and asks you where all
| your money went and you point to a failed foreign
| investment.
| neaden wrote:
| Interesting, thanks.
| briefcomment wrote:
| This would be a poorly executed instance of this strategy
| right? Who in their right mind is getting fooled by a
| 100m dollar sandwich shop?
| onetimemanytime wrote:
| would you have known if this story wasn't posted? Plus
| every small shop has potential....1 trillion, billion
| stores all over the world so the value is forward looking
| ;)
| andrewmcwatters wrote:
| I had given this some thought in the last few months about how
| valuations across the board are so nonsensical that the
| investment landscape is ripe for essentially small businesses to
| go public, and not even have to game their finances because
| people will mis-screen them anyway and flock to purchase
| literally anything.
| rmah wrote:
| I don't think this company is publically traded.
| thrill wrote:
| https://finance.yahoo.com/quote/HWIN
| fnord77 wrote:
| probably featured in a WSB "deep dive" where the author states
| this stock is the buy of a lifetime
| atat7024 wrote:
| It was for someone.
| cosmodisk wrote:
| Nothing surprises me anymore... Last year I did a bit of
| freelance writing on equity markets with a focus on some more
| interesting stocks. During the period I did read lots of SEC
| fillings, other articles on various website, etc. It looks like
| the bigger piece of crap it is, the bigger the valuation. There
| are tons of companies out there that shouldn't be trading more
| than a kebab kiosk,yet the stock price is like they are doing
| missions to mars. Absolute bonkers.
| jdavis703 wrote:
| Average trading volume is 346 shares. It's pretty easy to
| manipulate the stock price when only a few people are trading.
| graeme wrote:
| Which would mean, at current market price of $13.50, $4671 a
| day is traded.
| nrmitchi wrote:
| """
|
| Hey buddy, I'll sell ya 100 shares of my company, which has
| 100M shares outstanding, for $1/piece.
|
| Sound good? Sweet! I'm now a centi-millionaire!!
|
| """
| huac wrote:
| This is the simplest and probably correct explanation. I'm sure
| there are others out there too.
|
| Of course volume today is off the hook, lol
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