The company is doing well. And it's certainly doing well enough to support a much higher stock price. And, where it's headed with HTS is certainly going to be an exciting new phase. This nonsense with the stock being brutal as we've seen is just that... nonsense. It literally doesn't make any sense. I believe we are going to see much better and more fair/beneficial valuations once the company gets through the reverse and uplist. Obviously this issue stems from the offering as the stock was doing just fine beforehand. For whatever reason, once the stock slid from someone selling from the offering, and the reverse for uplisting purposes was announced, this for some strange reason intensified the downturn.
Can't blame the company for putting a plan together to execute a capital raise, reversing the stock to get away from penny land status and getting the stock uplisted to real exchange where the stock can do well. At the same time, captured coverage from an analyst who put a buy rating on the company with a $160M valuation forecast as their core business continues to perform and HTS continues to enter different markets/verticals.
I don't think anyone anticipated the stock to fall while all these great things are happening with the company and the business doing well.
There's no real good reason for the stock to have fallen. The only explanation points to some investors from offering who needed liquidity and this snowballed into spooking out more investors as the stock was dropping.
I am going to look at this from a glass half full perspective at this point and hope most of the selling is done and these people are gone with their stock now being held by more loyal investors. I can't predict for sure what is left on the sell side. Perhaps, at this point it's just being manipulated by the MM's who facilitated these short sales to liquidate their customer orders in the first place. It hurts to watch, that I know. But I also know these guys are building something big and I'm in it to win it.
There's no telling what it would be if they didn't do offering. Maybe the stock would've continued to climb from the base it was making at much higher pps. But at some point, in order for the stock to do what we think it can do, the company had to look at uplisting. And having more cash is always a good thing for a company who is preparing for growth. The dilution wasn't really an issue for me as it was a small raise. I thought the pricing was a little low, but even if it was a little higher it's not a big difference. Perhaps they could've waited on the offering and did it alongside the reverse and uplist, but who knows now that we saw what we saw. The only difference would be that it probably would've had more support as large investors would be attracted to the stock in a better trading environment with higher pps and nasdaq or amex listing. There would be no red tape and compliance issues for firms to bring in investors. And, with that said, let's hope things get better with the stock and this reverse and eventual uplist allows for more sensible valuations. It's certainly seems like a better situation to be transitioning into a reverse after being brutally beaten up rather than trading at a market cap 3 or 4 times higher or whatever market cap. For crying out loud, the analyst has a $160M market cap which is 1,000% higher. How in the world we are sitting at these low prices is a real brain-twister, but now that it is what it is, it seems better to go into reverse at this stupid low valuation.
