Info for those who purchased WSG (Wanda) stock : Investigation

Oct 9, 19 15:59

Post #1 of 20 (4993 views)

Seen a few of these announcements yesterday and today.

EQUITY ALERT: Levi & Korsinsky, LLP Notifies Investors of an Investigation Involving Possible Securities Fraud Violations by Certain Officers and Directors of Wanda Sports Group Company Limited
NEW YORK, Oct. 08, 2019 (GLOBE NEWSWIRE) -- Levi & Korsinsky notifies investors that it has commenced an investigation of Wanda Sports Group Company Limited (“Wanda” or “the Company”) (NASDAQ: WSG) concerning possible violations of federal securities laws.

On July 26, 2019, Wanda conducted its IPO, selling approximately 24 million American Depositary Shares ("ADSs") for $8.00 per ADS, raising more than $190 million. Since then, the Company’s ADSs have consistently traded down, closing at $4.02 per ADS on October 7, 2019, driven by the resignation of the Company’s Chief Executive Officer and poor reported financial results for the second quarter of 2019. To obtain additional information, go to:
https://www.zlk.com/...ny-limited-loss-form
or contact Joseph E. Levi, Esq. either via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.
Levi & Korsinsky is a national firm with offices in New York, California, Connecticut and Washington D.C. The firm’s attorneys have extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities and shareholder lawsuits. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
55 Broadway, 10th Floor
New York, NY 10006
Tel: (212) 363-7500
Fax: (212) 363-7171
http://www.zlk.com

Re: Info for those who purchased WSG (Wanda) stock : Investigation [vonschnapps] [ In reply to ]

Oct 9, 19 16:16

Post #2 of 20 (4937 views)

Do these things actually mean something? Back before Apple changed the news source in their Stock app, I felt, on any given stock, I saw these kinds of announcements every few days.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [Traket92x] [ In reply to ]

Oct 9, 19 16:29

Post #3 of 20 (4910 views)

It depends, there were/are these ‘investigations’ on Tesla all the time. There’s no movement on the stock price, so doesn’t seem to shock anyone. They are often used to pressure the company into some sort of settlement beneficial to the law firm, pennies for shareholders. Sometimes they do reveal legitimate issues.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [vonschnapps] [ In reply to ]

Oct 9, 19 17:32

Post #4 of 20 (4793 views)

This law firm is the consummate shareholder plaintiff dirtbag outfit. They make these announcements, get a couple stockholders to file suit, and then “investigate” things like the disclosures in the offering documents. They use the threat of litigation as a way to get the target company to pay their fees, usually by identifying some trivial piece of information that was ignored or misstated in the document.

It’s why people hate lawyers. Shareholders won’t see anything from these efforts.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [vonschnapps] [ In reply to ]

Oct 9, 19 17:42

Post #5 of 20 (4769 views)

Well since it is now sitting at about exactly 50% of the IPO price, probably most bad news baked in. I expect maybe this might help move the needle faster to the mid 3's again, maybe test the lows, and then if nothing happens, the stock will hang on the next earnings report. I have actually been surprised that the drop from the latest high in the mid 5's has stabilized in the high 3's to 4 bucks. Maybe because it is Kona week, this is their marquee event in the entire portfolio..

Re: Info for those who purchased WSG (Wanda) stock : Investigation [vonschnapps] [ In reply to ]

Oct 9, 19 18:09

Post #6 of 20 (4711 views)

No one wins here except the lawyers.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [Herbie Hancock] [ In reply to ]

Oct 9, 19 22:02

Post #7 of 20 (4457 views)

Missing earnings first quarter after listing is very bad. I’m not surprised

Re: Info for those who purchased WSG (Wanda) stock : Investigation [Waingro] [ In reply to ]

Oct 10, 19 4:22

Post #8 of 20 (4290 views)

Waingro wrote:

This law firm is the consummate shareholder plaintiff dirtbag outfit. They make these announcements, get a couple stockholders to file suit, and then “investigate” things like the disclosures in the offering documents. They use the threat of litigation as a way to get the target company to pay their fees, usually by identifying some trivial piece of information that was ignored or misstated in the document.

It’s why people hate lawyers. Shareholders won’t see anything from these efforts.

I hadn't heard of the firm so when I googled it all it returned was "SHAREHOLDER ALERT" and "CLASS ACTION ALERT" for a bunch of different companies. It looks like this is similar to what they do with Tesla, Netflix, etc. etc.

The fact that they are behind this actually makes it extremely LESS credible, IMHO.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [Durhamskier] [ In reply to ]

Oct 10, 19 6:06

Post #9 of 20 (4201 views)

Durhamskier wrote:

The fact that they are behind this actually makes it extremely LESS credible, IMHO.

Not less credible. Not more credible. Meaningless.

These law firms are purely predatory. Whenever a public company misses earnings or in any way reports bad news they each go out to get a few shareholders to sign on to some farce investigation like this, they then coalesce into a class-action suit, with the goal being to get the company to settle for a few million bucks simply to make the nuisance go away. The law firms then take 80%. It's corporate law ambulance chasing.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [kny] [ In reply to ]

Oct 10, 19 6:13

Post #10 of 20 (4181 views)

kny wrote:

Durhamskier wrote:

The fact that they are behind this actually makes it extremely LESS credible, IMHO.

Not less credible. Not more credible. Meaningless.

If a good law firm was behind it, it would be meaningful. The fact that none of them have engaged tells me there's nothing there.

But the target company has to be doing well enough to have the cash flow in order to pay. Would these ambulance chasers target a company that can't pay? I assume they put at least that much effort into their research.

If they choose at random, it would be meaningless. If they target the company after putting thought and effort into it (I assume they do, but have no evidence of that) then it means that that their allegations are less credible to me at least.

It's based on an assumption on my part, but such is the case for investments a lot of the time.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [vonschnapps] [ In reply to ]

Oct 10, 19 8:06

Post #11 of 20 (4097 views)

Remember that big spike in volume and rise in price...all on the heels of the financing banks putting out a “this stock is super” press release? Well, I’m guessing there is a link....since the volume has dried up, and the price slowly lowering (market manipulation to sell your shares is no bueno)...

We’ll see lower prices, and then a nice spike with Kona on the balance sheet...only to fall for 11 months as there is no “Kona” race to pretty up the ledger in those months.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [Herbie Hancock] [ In reply to ]

Oct 10, 19 8:56

Post #12 of 20 (4034 views)

Seems to be a lot of these firms.

Kaskela Law LLC Announces Investigation of Wanda Sports Group Company Limited on Behalf of Investors - WSG

INVESTIGATION ALERT: The Schall Law Firm Announces it is Investigating Claims Against Wanda Sports Group Company Limited and Encourages Investors with Losses to Contact the Firm

Re: Info for those who purchased WSG (Wanda) stock : Investigation [monty] [ In reply to ]

Oct 10, 19 9:51

Post #13 of 20 (3983 views)

monty wrote:

Well since it is now sitting at about exactly 50% of the IPO price, probably most bad news baked in. I expect maybe this might help move the needle faster to the mid 3's again, maybe test the lows, and then if nothing happens, the stock will hang on the next earnings report. I have actually been surprised that the drop from the latest high in the mid 5's has stabilized in the high 3's to 4 bucks. Maybe because it is Kona week, this is their marquee event in the entire portfolio..

Buying WSG seems like trying to catch a falling knife...

Re: Info for those who purchased WSG (Wanda) stock : Investigation [monty] [ In reply to ]

Oct 21, 19 13:45

Post #14 of 20 (3741 views)

Anyone know why WSG has tanked 10% in the last couple of hours? Trading at 3.35 after close. The "investigation" is not exactly breaking news any more.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [Hoffmeister] [ In reply to ]

Oct 21, 19 14:10

Post #15 of 20 (3682 views)

Earnings haven't been reported yet. I have a buy order in that I placed last week. Hopefully it drops before earnings are posted, I'm pretty sure that earnings will be good at least in the Mass Participation segment (WTC).

Washed up footy player turned Triathlete.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [Hoffmeister] [ In reply to ]

Oct 21, 19 14:17

Post #16 of 20 (3668 views)

Hoffmeister wrote:

Anyone know why WSG has tanked 10% in the last couple of hours? Trading at 3.35 after close. The "investigation" is not exactly breaking news any more.

Looks like you have a generally pretty illiquid security and someone came in an sold about 125k shares which if you back out the dip buying volume amounts to about 50% of the volume in and of itself. Could have be the machines moving that down, but my guess is you have someone just deciding they wanted to lighten up and just executed a market order lock-stock, instead of selling in smaller pieces. The lack of buying just kept it depressed then. A chartist might add that it would have been a double bottom at $3.54 and as a result of it piercing thru it triggered some more selling. Oversold on the daily and volume was pretty heavy for this move which is worse than if it it was low-volume move. The chartist would probably suspect a few more days of selling with possible a retest of that $3.54 after that. Chinese small-caps were down as well which can also explain some of the move.

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Re: Info for those who purchased WSG (Wanda) stock : Investigation [Thomas Gerlach] [ In reply to ]

Oct 21, 19 14:44

Post #17 of 20 (3611 views)

Thomas Gerlach wrote:

Hoffmeister wrote:

Anyone know why WSG has tanked 10% in the last couple of hours? Trading at 3.35 after close. The "investigation" is not exactly breaking news any more.

Looks like you have a generally pretty illiquid security and someone came in an sold about 125k shares which if you back out the dip buying volume amounts to about 50% of the volume in and of itself. Could have be the machines moving that down, but my guess is you have someone just deciding they wanted to lighten up and just executed a market order lock-stock, instead of selling in smaller pieces. The lack of buying just kept it depressed then. A chartist might add that it would have been a double bottom at $3.54 and as a result of it piercing thru it triggered some more selling. Oversold on the daily and volume was pretty heavy for this move which is worse than if it it was low-volume move. The chartist would probably suspect a few more days of selling with possible a retest of that $3.54 after that. Chinese small-caps were down as well which can also explain some of the move.

It's possible - volume from what I can see is slightly higher than 3m avg, but dumping a large-ish market order for an illiquid stock would sound remarkably stupid.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [Waingro] [ In reply to ]

Oct 21, 19 23:08

Post #18 of 20 (3421 views)

Perfectly put.

I’ve been out of the fundamental analysis game a long time, but...are there/were there any fundamentals here? I’m pretty sure you got what you paid for: a POS penny stock.

Good luck!

Re: Info for those who purchased WSG (Wanda) stock : Investigation [monty] [ In reply to ]

Oct 23, 19 10:33

Post #19 of 20 (3146 views)

monty wrote:

Well since it is now sitting at about exactly 50% of the IPO price, probably most bad news baked in. I expect maybe this might help move the needle faster to the mid 3's again, maybe test the lows, and then if nothing happens, the stock will hang on the next earnings report. I have actually been surprised that the drop from the latest high in the mid 5's has stabilized in the high 3's to 4 bucks. Maybe because it is Kona week, this is their marquee event in the entire portfolio..

Good call. Now would be a decent time to get in (higher than I wanted, as I missed the low 3.40s), as the $$ picture, if good, will cause some spike allowing for a small win...

This stuff is too much fun.

Re: Info for those who purchased WSG (Wanda) stock : Investigation [Culley22] [ In reply to ]

Oct 23, 19 16:46

Post #20 of 20 (3036 views)

Too risky for too little return. This is not a speculative stock with the associated volatility, it is a thinly traded baloney stock that was floated to get some cash for Wanda in return for useless paper. Yes they could get some partnership or some other event that makes news and gives a temporary boost but that’s a long shot. And maybe the PTA will come up with Two White Chips (some investors will understand that reference), but no one in their right mind is going to pay anything for a debt heavy entity like WSG. If you want fun invest in some of the VIX ETFs, or some of the 2x/3x sector leverage funds. Not as fun as Las Vegas, but it is legal gambling.

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