TKAT: March 17, 2021

In the realm of “Well, that’s interesting (stock market edition),” take a look at the stock of Takung Art Co., Ltd., today. It trades on the American Stock Exchange with the ticker symbol TKAT. Takung operates an electronic online platform for artists, dealers, and collectors to buy and sell artwork primarily in the People’s Republic of China. It pays no dividends, and reports no earnings.

After trading between $1 and $2 a share for all of last year, it jumped at the beginning of this year to about $2.50, and has slowly been trending up the last two months. At the end of the day Monday, it jumped to $9, and then yesterday ranged between $6 and $7, closing at $5.99. Just after 11 o’clock this morning, somebody noticed it. Or perhaps a lot of somebodies. It peaked today at $24.90, and finished the day at $22.60. There are a total of 11,271,000 shares outstanding, and the 90-day average trading volume, until today, was just under 588,000 shares per day. Today, it traded just over 66 million shares. Put another way, every single share of the company in circulation changed hands six times today.

I don’t own it, and don’t feel any need to buy this stock (except, possibly, if I could buy it yesterday), but it is interesting to look at.

How big is small?

I’ve been watching the stock market, and specifically what’s going on with the Gamestop stock (GME). The media keeps saying “small retail investors” are driving the meteoric price change. I looked through WallStreetBets, the reddit feed where those “small retail investors” came together to plan and execute this action. Several participants post screen-shots of their stock positions, and I’m seeing cost bases/initial investments of $31,000, $94,000, and $142,000. Sure, there are many small fry with a few shares, but it seems the bulk of these “small retail investors” have pumped tens of thousands of dollars each into this stock. Should we be thinking of them as “the small guy,” or are they are just individual stock manipulators?