Rennova Health Inc (RNVA)

[420man]

Let's unpack the "WASH, RINSE & REPEAT" saying.....

1. Companies go public to finance their endeavors.
2. They sell shares to lenders that then sell to retail.
3. Retail buys on the Companies PR's and filings (If they file).
4. Once the OS is exhausted, then the Company almost always issues a RS & AS increase to continue the funding that's "necessary".
5. The RS consolidates the OS's and thus allows for the selling of new shares to lenders out the AS increase.
6. The RS generally wipes out all current shareholders based on the RS equation that's almost always unfavorable.
7. The new shares sold to lenders are ALWAYS cheaper than what retail gets...meaning the lenders profits are already baked in.
8. Once the RS & AS have taken effect the Company then starts their PR blitz to help their lenders unload.
9. If the lender(s) are happy with their profits, then they will continue to fund the Companies "operations".
10. The Company and the lenders are basically one in the same...meaning they are the preadator and retail is the prey. If this equation didn't exist, then the stock market wouldn't really exist.

So, how does a trader play the above scenario for profits without becoming prey?

You ethier buy the strong dips hoping it recovers, flip the tiny ticks, or wait until after the RS and try to grab cheapies during the PR blitz.

Your best bet is to read the filings and then try as best you can to GUESS what the insiders are up to without having to turn off the lights when their done playing with the printing press.

Personally, I buy when it's quiet and while the filings point the way to the potential PPS increase... It's not fast and furious, but you're a lot less likely to get burned. Buying MOMO is a short term way to eventually get stuck and then have your capital stuck while watching other traders trade below you. I'd rather my capital being "stuck" while it's quiet and just wait upon the noise to begin. A lot less stressful.

Comments and/or suggestions are definetly welcome as I'm always looking to sharpen my skills.


RNVA