Never believe the PR story, trade the retail reaction to it!
Offering dividend shares to shareholders of one shell company from the merger (reverse or forward) shell subsidiarity company is a typical midstrean ploy used ALL THE TIME.
You usually see this in month 2, of a 3 month temp job play. When the company management doesn't have the story lined up well. They miss a promised goal or have no new news waiting to release on their desk. So the retail herd's interest falls and the stock price retraces past exceptable FIBs levels, for continuation past previous highs.
So they need to go to plan "B" and start a new story line all together, to get retail interest back. Never believe the PR story, trade retail reaction to it. I've seen plenty dividend deals from subs and parants OTC companies, BUT not once seen 1 retail shareholder recieve 1 extra free share promised or promoted.
Now I'll look at the chart.
No price pull down, no long accumulation seen. A out of the blue price and volume surge, which didn't get enough retail interest. (volume did NOT rise to 10 mil a day for a double zero stock)
So this PR noise is not mid stream, like normal. It seems to be more desperation and inexperience. There is potencial in the chart, but it is NOT typical. Worth watching to see how retail reacts in the future. But because it seems to be controled by inexperienced dask player. If anything happens to the price, I'd expect it to be quick, strong and gone. Act fast if played. Pocket those profits every day, and re-enter on continued price emotion. This one could end up like ECDC, with 1 or 2 day surges and back to the begining till the next pop.
