Cathie Wood Dumps Nintendo, Buys 8.3 Million Shares Of Short Seller Target Ginkgo Bioworks
Cathie Wood is doing her best Tesla impression with her Nintendo shares – and selling them. She also appears to be continuing her capital deployment strategy of “close my eyes and buy anything that dips” that has served her and her firm extremely well over the last 18 months.
Wood’s flagship ARKK fund has been selling Nintendo ADR’s since July and now only holds just 1,500 shares, worth only about $82,000, the report notes.
Meanwhile, Wood has been busy buying names that are being called out as “scams”, as she did when she bought 8.3 million shares of Ginkgo Bioworks on Wednesday in two funds, despite the stock being labeled a “Frankenstein mash-up of the worst frauds” by Scorpion Capital.
Wood once held as many as 4.7 million shares in Nintendo, which made up 1.55% of her fund at the time.
Wood’s sales have run in line with a 28% decline in NTDOY’s share price, which came as a result of analysts offering up pessimistic takes on the company’s new Switch console.
The Switch is “on the cusp of a multiyear slowdown,” said CLSA Securities Japan Ltd.’s Jay Defibaugh. He predicted Nintendo’s operating profit would be cut in half between now and March 2024.
Meanwhile, Scorpion Capital alleged of Ginkgo Bioworks, Wood’s latest major portfolio addition, that a large portion of the company’s revenue is “phantom”.
Their report claimed: “A senior employee [of one of Ginkgo’s customers] stated unequivocally that they have never paid Ginkgo cash for foundry services and are merely using ‘free’ R&D credits following investments by Ginkgo and Viking.”
“We cannot disagree that the stock will probably be down 80% in short form,” Citron Research’s Andrew Left added about Ginkgo.
Hell, at least Nintendo’s revenue exists, Cathie. Perhaps your analysts should work that into their models…
Thu, 10/07/2021 – 08:56