Are the identical individuals who purchased Quantum Computing inventory final week promoting it this week?
Quantum Computing Inc. (QUBT 25.23%) inventory is on a roll.
The U.S. authorities is shut down, however shares of the eponymous quantum computing firm have gone up day by day for the reason that shutdown started, together with right this moment’s rise of 19% by means of 9:50 a.m. ET. Curiously, although, the large information on Quantum Computing inventory this week appears to be dangerous information.
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Quantum Computing information final week
Final week, in case you recall, Quantum Computing introduced it will increase a bunch of money in a inventory sale to non-public buyers. Promoting 26.87 million shares at a median buy value of $18.61 per share, the corporate got here away with $500 million in new cash (earlier than charges).
This week, Quantum introduced it is doing much more promoting — or slightly, its shareholders are. What’s extra, these shareholders seem like the identical ones who purchased Quantum Computing inventory final week!
In a Wednesday submitting with the SEC, Quantum detailed “the proposed resale or different disposition” of unidentified “promoting stockholders” proudly owning 26.87 million shares of Quantum inventory, the very same variety of shares Quantum positioned with somebody every week in the past.
Is Quantum Computing inventory’s information good or dangerous?
The excellent news right here is that the brand new inventory gross sales will not be being made by Quantum itself, so the corporate isn’t diluting its shareholders twice in two weeks. The dangerous information, although, is that Quantum already diluted shareholders by 14.4% final week, and whereas this share issuance raised money for Quantum, the buyers who purchased the shares do not appear occupied with holding them.
As a substitute, they’re turning round and cashing out for greater than a 20% revenue, a revenue that is getting even larger as Quantum Computing inventory strikes even larger.
That is nice information for them, however anybody else who owns Quantum Computing inventory ought to most likely be fearful.
Wealthy Smith has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.
