The Spectacular 955% Surge of a Debt-Ridden Shipbuilder’s Stock
- Samsung Heavy’s preferred shares jumped this month on an order
- Retail investors chasing quick gains fan volatility: Macquarie
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The tiny preferred stock of a Korean shipbuilder, which has built up debt in recent years, has surged this month as retail investors seek short-term returns amid low liquidity.
The preferred stock of Samsung Heavy Industries Co., with just 115,000 shares outstanding, had a market capitalization of $54 million as of Tuesday, after rising 955% this month. It has gained by the daily limit almost every day since June 2, after the company announced it won an order from Qatar on LNG carriers along with other shipbuilders. The company’s common stock, with 630 million shares, gained a mere 8.8% since the deal was announced.