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Re: chunky-g post# 56062

Friday, 08/04/2017 9:32:41 PM

Friday, August 04, 2017 9:32:41 PM

Post# of 72061
As retail it never makes sense, especially in this case as the OTC vehicle pre merger. There is all sorts of excitement about this mysterious company, private company for which no one knows exactly what the financials look like etc

The single most important variable is toxic debt

I've been through literally dozens of plays exactly like this. I was also a new trader once and lost big on a play like this, you have to understand the toxic debt stricture and its impact.

RM plays just do not work out in the OTC. The only good action, the only real MOMO is PRE RM(if it ever happens. Most of the time delays then cancel)

It's all about the anticipation. Everyone sells on news, that is a law of gravity

Another law of gravity. When your ticker announced an RS, no matter how strong the MOMO and DD are you do not hold. Never.

As a "common" share holder you are cooked. The Company merging gets "RS protected shares" so they get to convert POST RS shares. Which means you are paying a premium right now.

There is plenty of toxic debt yet to convert, another reason for RS.

If you really believe in the company why not contact them directly and offer to fund them? Best guaranteed ROI

Common share holders on the OTC have the worst shot at breaking even


Cheds

$FRZT

Helping new traders avoid my old mistakes #chedsblog