Dividend Stocks

TOP Stock Surges 25% After Company Rebounds From Stock Halts

Shares of TOP Financial Group (NASDAQ:TOP) stock are up by about 25% on no company-specific news. The company, headquartered in Hong Kong, engages in the provision of equities, futures and options trading through its subsidiaries.

Earlier this year, shares of TOP stock accelerated to as high as $256 on no company-specific news. The price action echoed the unexplained trading behavior of other companies based in Hong Kong, such as AMTD Digital (NYSE:HKD) and Magic Empire Global (NASDAQ:MEGL). This led the Securities and Exchange Commission (SEC) to suspend shares of TOP from May 12 to May 25, and then from May 25 to May 30. On April 28, TOP released the following statement:

“While it is the Company’s practice not to comment on any stock movement, we believe it is important to note that we caution investors and all other persons to rely solely on statements and filings with the United States Securities and Exchange Commission issued by the Company itself or its authorized representatives.”

TOP Stock Surges Higher on No News

The SEC suspended shares of the company due to “unusual, and unexplained market activity raising concerns regarding the adequacy and accuracy of publicly-available information, in light of disclosures made concerning TOP’s financial condition and scope of operations.”

TOP’s last press release details its preliminary earnings for the six months ended Sept. 30, 2022. Revenue tallied in at $5.2 million, representing a yearly growth rate of 63%. On top of that, net profit was $2.5 million, up by 178% year-over-year. For the fiscal year ended March 31, 2023, TOP forecasted revenue between $9.75 million and $10.53 million.

“We are encouraged by our strong revenue and net profit growths in the first half of fiscal 2022, as we benefit from both our outstanding execution capabilities and the soundness of our business strategies,” said CEO Ka Fai Yuen. “With the launch of our new business initiative and our continuous efforts in expanding our customer base, we are confident that our business momentum will continue and expect the significant increase in our revenue and net profit in 2023.”

Even with these numbers, investors should hesitate before investing in TOP stock. The company’s website is suspicious to say the least, and the connection is characterized as “Not Secure.” TOP is also not transparent with its shareholders, as it posted its last press release on Oct. 31, 2022. Its earnings for the six months ended March 31 are nowhere to be found.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.