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Takata stock slumps

Posted on 01 December, 2016

Takata stock slumped by as much as 8.8 per cent after a Japanese day trader told his 103,000 Twitter followers that he had sold his shares. The slump was the biggest intraday decline since November 9 and finished the day down 7.5 percent in Tokyo. The trader, known as CIS, sold all the Takata shares he’d purchased three weeks ago and estimated that his Takata trade, involving about 800,000 shares, had netted a pretax gain of about $1.2 million. According to automotivenews.com, Takata had climbed to the highest since January 29 at Tuesday’s close of business. CIS began his Takata trade when the shares rose, after reports that it's US subsidiary was planning to file for bankruptcy. "The stock rose even after a piece of really bad news came out,” he told Automotive News. “For me that’s a sign of strong demand.” he said that he sold the shares because they had stopped rising once a potential sale to Autoliv or Key Safety was beginning to progress.