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Re: Prkchop post# 109618

Thursday, 01/19/2023 9:02:23 AM

Thursday, January 19, 2023 9:02:23 AM

Post# of 171923
That's actually not true. Most reverse mergers that have happened now since 2021 have gapped down on actual merger. Reason being, the hype toward the merger drove the SP up to such an unsustainable level, that when the company revealed themselves, of course shareholders were disappointed, the market cap at that point was twice or three times higher than the revs and assets of the company. And in most cases again, no company of actual value came in, but it was a no-rev, start-up, holding company.

So the odds of the SP going up on merger news is actually extremely low.

The SP does go up mostly on merger hype speculation. That's the time to exit before the disappointing actual merger news hits the street.

Why would anyone sell before the merger. That's where the share price will be the highest.


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