Q2 STOCKS TO BUY

2 Sinking Blockchain Stocks

Citron said LFIN is a "pure stock scheme"

Mar 27, 2018 at 9:37 AM
facebook X logo linkedin


Shares of Longfin Corp (NASDAQ:LFIN) are trading down 22.5% at $45.95 -- extending Monday's 16.6% decline. Sparking the sell-off in the blockchain name is a scathing Citron Research tweet -- which also weighed in on Shopify (SHOP) yesterday -- calling LFIN a "pure stock scheme," and saying its filings and press releases are "riddled with inaccuracies and fraud." Separately, FTSE Russell said the shares will be removed from Russell indexes after tomorrow's close.

LFIN stock has now erased its year-to-date lead, and while the security will remain on the short-sale restricted list in today's trading, bearish bettors are likely cheering. Short interest is up 89.5% in the last two reporting periods to 590,000 shares -- a record high on the stock that began trading publicly last December.

It's set to be a down day for fellow blockchain stock Overstock.com Inc (NASDAQ:OSTK), as well, with the shares off 9.4% in early trading at $40.40. The online retailer and digital currency specialist announced a public stock offering of 4 million shares, though it did not disclose the pricing.

Since topping out at a record high of $89.80 on Jan. 8, OSTK stock has shed roughly 55%. Plus, the shares are now trading below their 200-day moving average, which caught an earnings-induced bear gap earlier this month.

Against this backdrop, bearish options prices have exploded. The equity's 30-day implied volatility skew closed last night at 20.2% -- in the 96th annual percentile -- meaning calls are pricing in lower volatility expectations than their put counterparts.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter