On Sunday night MGT Capital Investments $MGT was an unknown penny stock involved in online gaming and fantasy sports. By Monday morning $MGT had announced that they were buying John McAfee’s cyber security company, naming the cyber celebrity as their new CEO, and renaming the company to John McAfee Global Technologies.
This is a pretty big announcement for an unknown company and I posted my first reaction to this news over on StockTwits (see below).
When I posted my reaction to the news, the stock was trading at 75 cents in the after hours. As I write this post, it’s trading at $1.34 in the after hours; that’s a whopping 78.6% gain in 24 hours. When news breaks on stocks with very small floats, the moves can be violent in either direction.
I have no idea what will happen with this stock and how long it can keep running based solely on the news that a larger than life character has been named the CEO. All I can say is if I were to get long, I would tread very carefully.
Disclosure: The author is long $MGT and may take additional long trading positions in the next 24-48 hours