Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
This is going higher on lighter volume which probably means that the float is getting tighter and tighter. Interesting....
- JMHO
In full disclosure I don’t know this Roger from Adam and he (they) may have a good business model but unfortunately many “good” companies have been destroyed on the OTC because of negligence from the management about financing especially with regards to toxic financing. The history of that is plain and for all to research. It’s too much of a risk to be in long term (or more than a couple of days frankly) in a stock that has the printing presses going at full throttle.....for that I’ll take a quick 50% return, get out and stay on the sidelines or move on.
- IMHO
Maybe but it’ll at least bounce to $0.08 or so which will be a nice exit from a cost average of $0.058! I’m fortunate enough to realize what I’m buying, going in, which is why I’m only in it for a bounce (trade) and NEVER an investment. I do feel bad for those that might be holding the bag from higher prices but their quarterly reports and filings (albeit poorly done and with late disclosures) should have warn anyone who bothered to read them how much dilution this company was issuing....
- JMHO
Picked some up at $0.058.... but don’t worry- I’m under NO illusions of what this pinky is. It’s a stock printing press machine at best but it might be good for a quick bounce. I’m only looking to trade this and in no way advocate “investing” in it. They have a poor history of issuing shares like toilet paper so I’m not ignorant of that fact....good luck!
- JMHO
As I was saying....the $0.05s was the most likely next stop. Now it might get interesting since the big shots who have been financing this thing and converting down in the $0.02s are going to want to protect their profits from further conversions that they might have left. I’d expect a bounce from here which could be good for a couple of pennies....
- JMHO
You need to read through all their Quarterly reports (go to disclosures on OTCMarkets). You’ll notice who converted what and when. It appears that they have “less entities” (or Notes) or individuals but the dollar amounts are much larger per note(s). They issued a larger size new Note(s) after September 10, 2020 totaling $5,025,754! The prior filing they made a correction because it only showed $3.9 Million. And by my calculations they issued 160,266,667 (unrestricted free trading) shares on 3/03/21 for a conversion at $0.0224 to the same note holder. That’s only $3.5M of the $5.1M outstanding. They also have a history of issuing a ton of shares for “services”. They also sold a lot of “restricted” shares back in Oct-Dec ‘20 which coincidentally would come due to become unrestricted but not sure if this company is Rule 144 compliant. There’s also no current information on any new notes that might have been issued from January til now. Nonetheless- it’s going to take tremendous volume again to lift this thing back up again given how many shares the market has had to absorb since March 2021!
- JMHO
This might find a “floor” (maybe) around $0.05 or so.....Let’s see but I’m not touching it until I see how it reacts down there. I usually have a rule of never buying any OTC companies’ shares if they have over a BILLION shares outstanding and this one is approaching TWO BILLIONS!!! It does trade though and that’s all it’s probably good for....to flip it for a couple of pennies once you’re lucky enough to get a good entry point. Keep in mind that they have Notes, issued back in Sept-Dec 2020, currently converting and the problem is there’s no way of knowing how many for how much until the next disclosure filings.
- IMHO
For anyone trying to figure out where all the selling has been coming from....all you need to do is look at their most recent disclosures. There has been over $5 MILLION dollars worth of conversions being done since the middle of March (notes that were originally issued around 9/10/20) with conversion prices at around “$0.025!” Now look at the chart and see where this Stock has been trading since March ‘21 and Riddle me this: what would you do with THAT much profits worth MILLIONS of Dollars of profits already built it? Now ask yourself this other question: if they’re reporting a net profit (as per their last filing)- do they STILL have to issue any more convertible notes? If so, why? If they don’t, then the selling should ease up in the next couple weeks but who knows! I never trust an OTC company once they’ve issued over a BILLION shares. It’s egregious and a very poor way to manage and fund a company. At this stage, they should already be a fully reporting company and they should have filed a straight registration (S1, S3 or Reg A) and funded the company that way - there’s plenty of liquidity. Instead they’re hooked on easy money from convertible notes from unsavory characters in this business. Bad move...
- JMHO
Looks like another one of those “shake the tree” moves again. They bring the price down with very little volume looking for sellers then its air and wide spreads on the upside. Been seeing this pattern for a while in this thing for the past couple weeks. It’s Funny seeing it play out and watching some people (selling) - that keep falling for it.
- IMHO
Their new CEO mentioned something about that (a PP) in the last shareholders update. Apparently they must getting some very “accredited” people, especially from the tech industry, to participate. He also mentioned that he himself was putting his in own money in that round which is something very unusual in the OTC land. Maybe there’s something here that hasn’t happened before with this company...we shall see.
- JMHO
Like clockwork....
Reed’s Inc. Announces $7.9 Million Registered Direct Offering
Source: GlobeNewswire Inc.
Reed’s Inc. (Nasdaq: REED), owner of the nation’s leading portfolio of handcrafted, all-natural beverages, today announced that it has entered into a stock purchase agreement relating to a registered direct offering in which the Company would sell up to 6,680,000 shares of its common stock at a price of $1.18 per share for gross proceeds of approximately $7.9 million.
Roth Capital Partners, served as sole placement agent for the transaction. After the placement agent fees and estimated offering expenses payable by the Company, the Company expects to receive net proceeds of approximately $7.4 million. The offering is expected to close on May 7, 2021, subject to customary closing conditions.
Not to rain on anyone’s parade here but if this thing struggles to get over $1.30 and stay there for more than a day (see my previous posts) then expect a filing within the week disclosing another PIPE transaction placed by none other than Roth Capital (IB) somewhere underneath $1/ share. Knowing Roth, I wouldn’t be surprised if it’s more like in the $0.80s. Don’t think for a second that REED won’t seek to capitalize on this run with this volume/liquidity in order to raise more money. That’s been the number ONE issue with this company....it’s NEVER made a profit! If they could- it would be off to the races. But until then- it’s always best to take a wait and see attitude and jump in right after they’ve place and priced a PIPE/ Secondary and buy around those prices and sell most of it whenever it runs up into the $1.20s+. And then wait and reload. Been doing that for a couple of times over the years and it’s been working like a charm! Good luck
- JMHO
I wouldn’t worry about it as there’s probably a lot of things that will come out (in terms of PR and actual developments) once the official closing of their acquisition. We’re probably closer to that point than before but some people have to have patience especially in this thing as it took them about two years to turn it around. It’s more of a wait and see strategy at this point and perhaps adding whenever the opportunity arrives with a low floater like this....
- JMHO
True and based on the terms of what they already announced - the SmartAxiom founder and his stakeholders would become affiliates which would further restrict them when the time came for them to register shares. In other words, you’re looking at least a year before any of those shares could come to market.
- JMHO
The ease of how this keeps creeping higher when there’s still probably a lot more to come out (ie new developments and disclosures) leads one to believe it could get to a higher range. Let’s see what happens but so far it’s been very impressive and reminiscent of a stock that has bigger plans in motion including deals that could help it up list it....we’ll see.
- JMHO
It’s unbelievable how thin this keeps getting the higher it goes. Perhaps there are more holders than before....unusual for this thing but perhaps they (New CEO and team) have finally started turning it around.
- IMHO
The interesting part is how this thing keeps creeping up and it’s still relatively under the radar screen. That’s very unusual but then again - it’s still a small floater at these levels.
- JMHO
Looks like there are some more weak leaves that need shaken. It’s almost comical seeing people chase up and then scatter down like little frightened mice from these kinds of swings when they should know better when a float is this small and tight. Obviously there’s no patience among some....
- JMHO
This is what we use call in the old days of trading....”Shaking the tree” LOL
- IMHO
Looks like someone (or people) have locked up the float and it’s getting harder to scoop up shares on those down drafts...
- JMHO
Just broke $0.16....looking kind of thin up here. Interesting...still not that many eyeballs on this but perhaps that’s a good thing.
- IMHO
True but sometimes it’s all about the timing and being in at the right time. Let’s see what develops with this thing but patience is probably the best course of action.
- IMHO
A little birdie said that he and others from Cicero Transact (see link below) are/have been investors in this for a bit. Might have increased their stake? Interesting....
https://www.cicerotransact.com/team
- JMHO
As been stated many times before....the float is drying (sucked) up hence why it’s taking less and less effort to move this higher. By the time everything is announced or disclosed, this could probably be higher than what it is now.
- JMHO
Anyone trying to “day-trade” this is completely clueless....
- JMHO
The spreads are widening up on the Offer side again which means that some people are willing to hold onto their shares at higher prices. Very unusual for this thing.....
- JMHO
That’s probably why it seems to move higher on less and less effort (volume). As someone stated before....
- IMHO
It seems like it’s taking less and less volume to push this up higher which is confirming the opinion that the float has been sucked up by holders instead of flippers for pennies. Let’s see what happens.
- JMHO
That’s probably why you see wide spreads like this. The float has most likely been sucked up and there are now more holders than traders in this.....just an observation.
- IMHO
That’s probably why you’re seeing such wide spreads on the offers. It’s as if the float has been sucked dry and the only way to accumulate a position is by waiting on the bids for an occasional seller or two. Very different dynamic than what you normally see in most OTC pinks (ie with a gazillion shares O/S). And the fact that this one has been reporting and staying current -on time- in the past several quarters lends one to believe that it’s being primed for something....we shall see.
- JMHO
Same here....you almost NEVER see insiders (especially management) of OTC companies buy open market purchases with their own money. Something must be cooking or in the works soon.
- JMHO
Still own some from $0.59 back right after they placed the latest offering a few months ago. Let’s see if this has the wherewithal to get over $1.30 and if can stay above that. The fact that the last semblance of the old guard (ie Chris Reed) is finally leaving the board is probably a good thing considering this company has never made a profit since inception. Hopefully the new crew will see to that and if so, there’s no reason why it shouldn’t stay above $1.30 unless they’re planning another placement (ie more dilution) below a $1. That’s going to really determine the direction.
- JMHO
Yeap,...scoped some up at $0.066. This has a a tendency to drop out of the blue before the next bounce back up.
- JMHO
It certainly looks like they got rid of one of the worst and bad actors in the Convertible Debt space....That is certainly a positive development. This should get interesting and in line with what they said in their last update when they stated that they would be cleaning up their balance sheet with the upcoming acquisition. We shall see.
- JMHO
Looks like someone was forced to blow out of their position whether they wanted to or not! Their lost and another one’s gain....
- JMHO
Wondering who was sharp enough to scoop some up down in the 6s & 7s?! Or dumb enough to dump them down there. Either case- this thing is bouncing back and volume is picking up again.
- JMHO
As someone already mentioned- it’s mostly retail. Just look at the trades and the spreads and it’ll give you a better glimpse of what’s being bought and sold. For crying out loud....look at the last trade (237 shares LOL) on a downtick. There are too many pikers in this trying to “day trade” it when it’s not the situation for these type of companies. Not suggesting a long term hold but to day trade it is just lunacy.
- IMHO
Probably from the same pikers who have been buying this thing back when it was under $0.05. They’re probably taking profits and looking to get back in or moving on. Welcome to the world of OTC...
- JMHO
Smart move IMHO. They decided to go with a full blown acquisition without the baggage that could’ve come from that other deal. Looks like the company they’re acquiring already has customers AND revenues. This should be interesting....
- JMHO
Selling a little more up here,....can’t complain about a double in a relatively short period of time.
- JMHO