US Tiger Brokers is $TIGR affiliated US underwriter specialized in issuing and promoting pennies pump and dump stocks. That lone factor bankrupts any potential thesis purporting to the company’s undervaluation.
I have highlighted the live case of Julong Holdings $JLHL as a live case study to support my thesis.
Up Fintech Holdings valuation multiples hide its true Nature.
Julong Holding Limited JLHL-38.48% is down 23% in pre-market as of today ( Monday July 13th ). I expect the stock to eventually follow the trajectory of all the stocks issued and promoted by US Tiger Securities, the US brokerage arm of Up Fintech Holdings ( TIGR-3.77% ).
Talking is cheap, writing even more so. Many financial analysts have recklessly highlighted Up Fintech as a rare bird, a strong brand equity popular Financial App that can successfully pivot out of its recent regulatory issues within the heavy handed Chinese Financial market.
I disagree with their thesis. Unlike other popular financial apps that merely gamify their operations to attract unsophisticated retail traders, the case against Up Fintech rests on its long history of issuing and promoting “Vampirestocks.” Thus, the case against Up Fintech leads to a clear conclusion: Up Fintech Holdings (TIGR -3.98%↓) is a structurally impaired asset.
The low valuation multiples are completely justified because the market is factoring in a toxic underlying revenue mix, persistent legal defense costs, and a business model structurally built on underwriting high-risk microcap promotions.
True value investing relies on buying a mispriced stream of future cash flows; buying TIGR means buying a compounding stream of regulatory penalties and litigation.
VERDICT: AVOID!!!!!!!
( Let’s all watch and follow JLHL-38.48% for a live case study of Speculative vampirism.)
I expect US Tiger Brokers to speed up its issuance of micro-cap junk in the future, given the cutoff of its profit center around its formerly China-exit, money-laundering Silk Road.
