Branded Legacy Inc (BLEG)

[recinvestor]

Short squeeze, float lock and supply vs. demand.

I strongly believe all three of these things are factoring in to VATE’s strong move right now. All are interwoven with each other and have a direct correlation one how the other reacts. All are working in favor of any VATE stock holder.

Short Squeeze

My observations on a short squeeze were shared yesterday in this post link:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=137050165

Float Lock

The float is the total number of shares that can be freely traded. This number is calculated by taking the issued and outstanding share count MINUS the restricted shares. Basically it represents supply.

VATE has a float of only 64 million shares. This is tiny compared to almost every other stock in the MJ sector space.

Shares have been accumulated and held as can be seen on this chart. Accumulation/Distribution line is at an all time high, which basically means investors are accumulating shares, rather than distributing them.



Extra credit for those that spotted the golden cross on the chart (when the 50 day moving average crosses the 200 day moving average). Golden crosses are seen as very bullish.

A float lock is when most of the shares in the float are just being held. I like to think there is truth to the fact that if you own shares and put a sell order in well above the asking price, that a brokerage firm can’t lend your shares out for shorting purposes.

If most shares are just being held and not available to buy or sell, a float lock occurs. This leads into the next factor...

Supply vs. Demand

This is probably the easiest factor to understand as it is basic Econ 101. For a stock, if the supply is limited, and the demand is high, the share price increases.

With only 64 million shares in the float, increased demand for shares, and a short squeeze in play over the last several days, VATE has seen a major increase in it’s price.

All three of these factors are clearly in play for me.

Before anyone can chime in and say short squeezes and float locks are mythical fables, I’d respond with the fact that these in fact do occur. Even at the highest level of companies with strong fundamentals. Not only within their stock performance, but product offerings.

Case and point:
Tesla and Apple have long been known to foil short positions. Especially Apple puts in the options arena. Tesla has a favorable float and every time short interest rises, bulls come back stronger than before.

Look at these two companies products as well. Supply vs demand demonstrates how if the product has high enough demand, with limited supply, the consumer will pay a certain “premium” to the “labeled” cost.

Tesla 3 has over 500,000 deposits and hasn’t even been released. I have a deposit for one, but have since changed directions toward a hydrogen fuel vehicle. However, I plan to sell my place in line for a premium if I can...as I know people who will pay more to cut in line.

Apple’s products are so much in demand, that you have people who camp out for a day or two before a new product is officially available, rumors galore going into a product launch, and fake Apple shops popping up in China trying to capture the craze and demand for their products.

These comparisons are more for the sake of showing how indeed the phenomenon of a “short squeeze, float lock, and supply vs. demand” play out in the everyday market with both stocks and products.

And this phenomenon IS what I believe is taking place with VATE.

Lastly, before anyone starts in with market cap, revenues, and other underlying fundamentals to support the current and future market cap of VATE...

Understand that there are no specifically defined rules that determine what the market cap should be, was, will be, or is. A market cap is defined by what the investment community gives it. And currently, the 3 strongest factors for VATE (discussed here), are what’s defining the current market cap. And if those continue to play out in similar fashion that brought the last several days worth of increased value, shareholders will likely continue to see an increase in value.

Go VATE
Rec