HANGZHOU, China, Oct. 21, 2020 /PRNewswire/ -- Weidai Ltd. (the "Company" or "Weidai") (NYSE: WEI), a leading auto-backed financing solution provider in China, is issuing this press release in light of the unusual trading activity related to the American depositary shares (the "ADSs") of the Company on the New York Stock Exchange (the "NYSE").
Normally, Weidai does not comment on market activity or rumors. However, Weidai confirms that it is not aware of any undisclosed material change or development in its business and operations or rumors in the market that would account for the recent increase in trading activity, and related increase in trading price, of its ADSs on the NYSE.
About Weidai Ltd.
Weidai Ltd. is a pioneer and leading auto-backed financing solution provider in China supported by sophisticated and effective risk management system and technology. The Company transforms used automobiles, a type of "non-standard" collateral, into investable assets, to provide accessible credit for China's small and micro enterprises, and connects the borrowers with institutional funding partners through its platform.
For more information, please visit https://weidai.investorroom.com/.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Weidai may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Weidai's beliefs and expectations, are forward-looking statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited the following: Weidai's goal and strategies; Weidai's expansion plans; Weidai's future business development, financial condition and results of operations; Weidai's expectations regarding demand for, and market acceptance of, its solutions and services; Weidai's expectations regarding keeping and strengthening its relationships with borrowers, investors and financial institutions and other platform participants; general economic and business conditions; Weidai's assumptions underlying or related to any of the foregoing regulations and governmental policies relating to the online consumer finance industry in China; and Weidai's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Weidai does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
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SOURCE Weidai Ltd.
David Rosenberg — the famed economist and founder of Rosenberg Research — thinks investors are putting too much blind faith in the Federal Reserve's ability to prop up a "frothy" market.
In addition to a perceived Fed-backstop, Rosenberg notes weak market fundamentals and lofty valuations as reasons for his concern.
Rosenberg thinks the market is in the midst of a short-term bounce, not a long-term rally.
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"You've got a tremendous amount of speculation."
That's what David Rosenberg, the famed economist and founder of Rosenberg Research, said in a recent Cambridge House interview when asked where he was seeing the most nefarious action in the market today.
To Rosenberg, the Federal Reserve is responsible for driving the exuberant behavior. In his mind, the Fed's actions are signaling to investors that equity purchases may be coming down the pike, thus, creating a backstop for any hiccups or obstacles that may emerge. The Bank of Japan has enacted similar policies by actively buying exchange-traded funds.
"I understand the concept of: The Fed has my back," he said. "Basically, we have Jay Powell is the blackjack dealer at a casino, and he's handing out the chips for free. I just don't find that to be a sustainable model, but that's really what's happened."
For context, here's a brief guide to what the Fed has been up to since mid-March:
"We know what happens with speculative, liquidity-driven rallies," he said. "They are castles built on sand."
Rosenberg's skepticism over the staying power of a speculative, Fed-driven, liquidity-induced rally is echoed by John Hussman, the outspoken investor and former professor who's long forecasted a stock collapse, and Stanley Druckenmiller, the legendary investor and former chief strategist for George Soros.
"Investors should be careful to avoid the misconception that easy money always supports the market," said Hussman. "Despite the fact that the Fed eased the whole way down during the 2000-2002 and 2007-2009 collapses, investors have come to believe that Fed easing always supports stock prices."
Druckenmiller's views encompass a similar tone.
"The consensus out there seems to be: 'Don't worry, the Fed has your back,'" said Druckenmiller, adding, "There's only one problem with that: Our analysis says it's not true."
In Rosenberg's assessment, the market is simply in the midst of a short-term rebound after the initial 30-plus percent, coronavirus-induced drawdown. To him, the prices being paid aren't reflective of fundamentals — they're being perpetuated by momentum and "excessive" sentiment. And that's permeating through to valuations.
"It's a very frothy market," he said. "It's still a bounce."
Despite a 40-plus percent rally since the nadir reached on March 23, Rosenberg thinks the market isn't out of the woods yet.
"I don't think this is the onset of a new bull market," he said. "This is a rally you can rent, but it's not a bull market you can own."
In addition to lofty valuations, overwhelmingly positive sentiment, and a perceived Fed backstop, Rosenberg is quick to touch upon a historical precedent that normally coincides with bull markets: a low measure of the VIX. The commonly referenced benchmark gauge of market volatility is now relatively elevated.
"Here the VIX has been close to 30 in the context of a 40% run-up," he said, adding that the measure is generally closer to 16 or 17 when a new bull is in place. "It is actually, very much, a low-conviction rally in that respect when you look at the volatility measures."
With all of that under consideration, Rosenberg delivers a stark warning for investors thinking that the coast is clear.
"I don't even really think we're past the recession," he said. "I think you've got to really take a look at the forest past the trees."
Knowledgehook cofounder and CEO Travis Ratnam
HandoutEdtech startup Knowledgehook recently raised more than $17 million in a fundraising round backed by Alexandria Corp and Nelson Education.
The COVID-19 pandemic has seen a surge of VC investment in edtech startups around the world, as students and teachers alike switch to e-learning under lockdown.
Business Insider got an exclusive look at the pitch deck ex-Microsoft manager Travis Ratnam used to convince investors to back his startup.
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Last week Knowledgehook, the edtech platform cofounded by former Microsoft manager Travis Ratnam, raised almost $18 million in a funding round backed by Alexandria Corp and Nelson Education.
Edtech has seen a surge in demand around the world amid the COVID-19 pandemic, with VCs pouring money into remote learning startups which have allowed individuals and institutions alike to stick to their lesson plans.
Knowledgehook incorporates AI technology to help teachers and parents alike track pupils' progression in math. CEO Ratnam, a one-time program manager at Microsoft, said the company had been born out of his own "struggle with math as a child".
"Having the right, personalized guidance makes all the difference and every student deserves to have a teacher who has access to the best pedagogical tools, and parents who have insights into their learning challenges," he said.
"Our platform is not a game, but will pull together a 360 view on a child's learning journey enabling people around them to improve their experience and outcomes."
The firm said it would use the £13.5 million (or around $17.5 million) raised to expand its reach around the world — with a mission statement of reaching 50 million pupils globally.
Business Insider got an exclusive look at the pitch deck Knowledgehook used to bring investors on board: