Rennova Health Inc (RNVA)

[angeloh]

I truly enjoy your posts Bids...
When might we get the next update on current OS..?

91 million plus shares today, 260 plus trades indicates by the number of transactions and the spread that MMs are making profits off the spreads. The name of the game for MMs is always generating profits. Not surprising then to see MMs keeping the price down to keep volume up to maximize profits on spreads. Most of the MM spreads today averaged 8% to 9% returns.

Makes them money at retails expense. Expect to see more of the same as sideways movement will probably continue until retail volume dries up. MMs will then either drop PPS to entice an increase in retail activity or buy enough shares to entice flipping.

Unfortunately the ability of RNVA to generate future revenues has no real impact on PPS at this point in time. Its entirely the MMs game to play until RNVA has real profitability showing in its 10Q/10K unless some very significant news attracts bigger money.

With the large number of shares in the float there are plenty of shares to be flipped at some level. While this works marginally for flippers there are still unknown holding periods and minimal profits to be made due to increased competition.

The only thing that will really cause this stock to uptrend is going to be real performance. So many shares out at such low pricing will mostly encourage flipping which marginally helps liquidity but minimizes any real upside.

The upcoming 10Q will have better numbers for a bunch of reasons. One is simply because one month of the Jamestown hospital as well as 3 months of the Oneida hospital revenue stream is starting to kick in although I am not sure how exactly how revenues will show from the Jamestown hospital other than as a receivable on the books since RNVA only recently received State approval to allow them to retroactive bill for services provided at Jamestown since June 1, 2018. The bigger reason though will be significant changes showing in derivative liabilities.

The third quarter 10Q will push PPS to new levels as the company will then have a full quarter of revenues from both hospitals and derivatives liabilities will be further decreased. With any luck dilution won't rear its ugly head then but we shall see.

I suspect shareholders might see developments in the spinoff(s) later this year since there is a real value to the company to conclude the intended spinoffs as soon as possible.

Of some concern is the total number of shares still possibly able to be converted by lenders (Sabby) so it could be cause for the PPS to continue to suffer in the next 12 - 18 months. I have not checked recently to determine how many shares can still be converted or the amount of warrants that can still be exercised by the lender who would of course convert into toxic debt. It really comes down to what the CEO and BOD adopt as a plan of action over the next couple of years, Do they actively work to increase share price by refinancing or paying down or off the toxic debt or do they focus on new acquisitions and let the shareholders bail them out of the toxic debt and/or until cash flow supports operations?

At least shareholders know there is no RS and no AS increase on the horizon.

Know what you own. Lots of risk moving forward still from a cash flow perspective but I see that diminishing rapidly as they seems to not have difficulty raising capital. I am a little concerned to see new financing still being convertible debt. Not sure if an warrants were exercised which ultimately could then become debt (toxic) but will continue watching what the company actually does as it moves forward in the coming months.

For me I continue holding my long position on 1 mil plus shares. Not chasing any buydown to reduce cost per share (that's just me) since I know MMs use the buydown process heavily for dilution and we have previously seen MMs use naked shorting to keep the PPS very low which signals to me they intend future dilution into events such as 10Q and positive news since this is what they have been doing. Have to keep an eye on the OS to see where that ends up.

Overall, I believe its a long road but the investment at these low prices is worth the risk when you consider risk/reward relative to the progress of the company.