Pinduoduo Could Pull Back When Lockup Expires

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About: Pinduoduo Inc. (PDD)
by: Don Dion
This article is exclusive for subscribers.
Don Dion
Long/short equity, special situations, momentum, event-driven
Summary

When the 180-day lockup period for PDD expires on January 22, pre-IPO shareholders and company insiders will be able to sell currently-restricted shares for the first time.

Significant sales of currently-restricted stock could cause a sharp, short-term downturn in share price.

Aggressive, risk-tolerant investors should consider shorting shares of PDD ahead of the lockup expiration date.

The 180-day lockup period for Pinduoduo Inc. (PDD) ends on January 22, 2019. When the lockup ends, the company’s pre-IPO shareholders and company insiders will be able to sell large blocks of