The Risky Trade Behind 'The Mother of All Shorts'

The video discusses AMTD Digital, a Hong Kong financial services firm with an extremely high valuation compared to its earnings. Despite being labeled 'the mother of all shorts,' professional short sellers are cautious due to the stock's low float and high borrowing rate. The company's fundamentals show modest revenue and profit, not justifying its high valuation. AMTD Digital has not provided clear reasons for its volatile share price but is monitoring the situation.

What makes AMTD Digital stand out in terms of its market valuation?

• It trades at over 400 times its earnings.

• It is the most profitable company in Hong Kong.

• It is the largest financial services firm in Asia.

• It has a higher valuation than Apple.

Why are professional short sellers avoiding AMTD Digital?

• The stock is highly liquid and stable.

• The company is backed by the government.

• The stock has a very low float and high borrowing rate.

• The company has a high dividend yield.

What is the borrowing rate for AMTD Digital's stock compared to mega cap stocks?

• About 5% for AMTD Digital and 50% for mega cap stocks.

• About 10% for both AMTD Digital and mega cap stocks.

• About 1% for AMTD Digital and 900% for mega cap stocks.

• About 900% for AMTD Digital and 1% for mega cap stocks.

What are AMTD Digital's reported revenues and net profit?

• Slightly upwards of $20 million each.

• Over $50 million each.

• Less than $10 million each.

• Over $100 million each.

How has AMTD Digital responded to inquiries about its share price movements?

• They have blamed market manipulation.

• They have not responded to requests for comments.

• They have provided detailed explanations.

• They have announced a share buyback program.