Top Financial (NASDAQ: TOP) has had an extreme run in the past 24 hours as we've already reported upon. That run is already fading away in the mere hours since we last reported on this issue:
Top Financial premarket trade from NASDAQThe fact that one Hong Kong financial stock is having its extreme moment in the Sun means that the other three Hong Kong financial stocks which have also had absurd post-IPO valuations are also having another run. Fortunately the response is rather more muted - sensibly, too.
But Magic Empire Global (NASDAQ: MEGL) is up 167% at pixel time. There's no reason for this other than the excitement in TOP. Given that the excitement there is fading, rapidly, then perhaps it will at MEGL too. We'd really not suggest trying to get into a large and long position in it, let us put it that way.
The other two are the intertwined AMTD Digital (NASDAQ HKD) and AMTD IDEA (NASDAQ AMTD) and we're even less enamoured of them. We did in fact, writing at another place, go looking for what was the exciting business at the heart of those two and didn't really find anything. It was rather boring and low performing in fact. As to AMTD's more recent activity it seems they've launched a magazine in Singapore. Well, yes, fascinating, very whizzy and high tech that is.
True, AMTD Digital has those hotel interests injected into it just after the IPO. But other than that there's really just a certain amount of talk about the metaverse and how exciting tech is. Which might even be true but it's not the sort of thing to base a $billion or more market valuation upon.
The real point here though is that in our opinion the moves and trading in HKD, MEGL and IDEA are all being prompted by the interest in Top Financial. As that's fading fast we expect the others to go back to sleep too soon enough.