It looks like an ok place but how and what would it be worth 100 million?
is there a scam going on?
Probably, but there is suppose to be some sort of franchise thing in planning and then weird stock market stuff happened is what I basically read.
It certainly smells like some sort of scam. I was initially thinking, “Yeah, a busy deli in a hot area of town might be able to do enough business to be worth that much”, but in reality, this isn’t one of those. Note that it’s only the market cap that’s $100 million - and that might just be because the people who all own the stock last traded it at some absurd price. As long as most of the shares are privately held and it’s not listed on an exchange, the market cap can be whatever the private investors want by making one small token transaction. It doesn’t mean that the last traded price is indicative of the value of the company. Even if the trade that causes the market cap to be that high is legitimate, it doesn’t mean people weren’t conned into making those trades.
There’s more at Business Insider, but I refuse to turn off my adblocks so I can’t read it.
The deli isnt worth 100 mil, thats its market capitalization. The so-called company is owned by Chinese.
‘Yet its stock price has surged from below $2 to $13.50 in under 18 months.’ Indicates that its worth is based on fraudulent hype rather than any true value.
Planet Money did an episode on it. The speculation was that it might be used as a quasi-SPAC (special purpose acquisition company).
Ever price the really good lox?
The Planet Money episode also pointed out that the Market Cap is effectively based on the most recent stock sales. The stock of this company is mostly held by a very few people, and very few stocks change hands. All the $100m figure tells us is that the last few trades were likely wildly overpriced. We don’t know the machinations that might have led to that price.
It reminds me of bitcoins and non-fungible tokens. Imaginary value simply because people believe it has value. Of course, you could argue that fiat currency is like that, but there is surely some value in being backed by a government. As far as I am concerned, gold is in the same category. It has value only because people believe it has value. You cannot eat it; it cannot shelter you; you cannot wear it. And don’t get me started on cowrie shells.