I did not post reverse merger stock don't run again. I posted after a shell shift, it takes time before they are ready for a new OTC game play. 3 to 6 months, while finding funding. I posted, put them on monthly watch, as they could and often do run when funding has been established.
The point being, the typical pennylander thinks a reverse merger is good long term news. But when news hits, emotion carries price pops high, for a few days only. Then when reality sets in and the big guys involved in the merger sold all their shares, feeding the emotion run. The price dives to below pre move price levels, volume and interest dries up and the stock goes dormant for several months.
So swing trade the merger news!! Don't think it will cause a major run and continuation to hold on too.
UNGS seemed to be an exception as it didn't completely die, like the others I had on monthly watch. The exception was it's price didn't dive way below prior price levels and volume fall to nil. Looked like they were quick in finding a new funding deal.
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.