With $CNNA- ALL PLEASE READ
AS ALWAYS- I like to get us all engaging and communicating, especially on long weekends, as we help each other to organize our due diligence and assist in the ability to analyze and assess risks, rewards and potential for opportunities.
This past week was an incredible example of teamwork - as those who came here solely to cause FEAR- were laughed off so fast because of the confidence the COLLECTIVE had on the DD. In the OTC- the retail collective has so many outside forces affecting their potential - that they MUST work together - as a cohesive DD unit -or risk stifling any advancements due to lack of cohesion and understanding of what’s actually occuring in the market.
For $CNNA- All one has to do is read back to late April and the due diligence that was presented- to get a clear picture of how well defined this potential acceleration would and could be here. It wasn’t easy to make a claim that we would see .01+ here when it was trading .0013 etc. but I was willing to take that risk/reward because one was finally able to identify a REAL company, with real products and revenues and one willing to spend a ton of $$ to provide disclosures and communications to shareholders.
IN THE PAST- What tended to happen to these alternative bulletins and markets, -especially since its been a relative challenge over the last 16-18 months to make money in the OTC, - is that the 2021-2022 regulations initially resulted in investors seeking safe havens from stocks that might go to the Expert market tier.
BY GOING SEC AUDITED and FULLY COMPLIANT- $CNNA management appears to have figured out that disclosures and communications are quite beneficial to their cause. Not the opposite.
In 2022- A ton of investor’s EXTRA cash flow that typically was earmarked toward discovering shells or stock companies in the OTC that could blossom into gems/darlings - no longer came in. Intriguingly - at about the same time - the $1-5 Nasdaq penny stocks and other higher exchange penny stocks presented a better chance to bank SINCE they already were under the guise of these SEC auditing or OTC reporting requirements. We saw some great moves from stocks trading under a $1 that needed to get back to $1 to meet minimums. These stocks are also considered penny stocks - but trade far above .01 etc.
In mid 2023- Now that the OTC market seems to be flowing a bit better - the ability to uncover potential SPAC or merger deals - is far easier when -get this- they indeed have to provide disclosures and communications to investors. LOL. - When a company files timely- you can uncover what’s under the hood that much easier. When they are more forthcoming with guidance, rules, regulations and procedures - they build trust within the investment community and we can enjoy the STORY STOCK approach again.
WHAT is a STORY STOCK?
LITTLE KNOWN- I have a background to a slight extent, in legal and accounting/audits and built my early trading career on finding speculative BIO stocks with old school traders like stervc- Nearly 2 decades ago - using Dial up internet from aol.com. It used to take me 12 minutes start to execution to get my trade up - first waiting half the time for AOL to connect to the internet and then my trading platform. BACK THEN- you had to really believe in the company to buy the stock. You had to track, chart and really assess your trades because of the time it took to execute. There weren’t hand held phones making everyone a day trader. It was fun, refreshing, the story of a stock mattered. The actions and filings of ownership and management were assessed and critical due diligence done along a pony express timeframe compared to the instant gratification approach of social media today.
Aside, I’m confident that most of the younger day traders of today— (with their phones in their hands and snap executions made based out of fear and irrationality from what they read or saw every second on social media instead of proper chart and fundamental trading )— would never have been able to handle trading in late 1990’s and early 2000 especially the annoying sound my computer used to make just to get aol.com to work. LOL.
Regulation isn’t bad at all. IT allows a story stock to unfold. It allows for a stock to build off its DD and not a false pump. One has had 5-6 weeks here to see and read the due diligence and really dig into the meat on their own. The more they researched - the more you hope to uncover the risks/rewards as it should lead to better trading decisions for entry and exit and potential reentry. Etc. You don’t fall in love with a story stock. You date her and watch her closely. If the stock lacks a cohesive “Story” or real “substance” the market usually makes it clear with the pps. The key is / to always LEARN and STUDY due diligence.
I have so many positions over the years that have come back full circle. Some I should have sold and didn’t. Some I sold way too early. New ownership, new management - new direction etc.
It’s best for investors to GET INTO THEIR OWN GROOVE of how to do proper DD so they can then help the collective here potentially uncover something they missed. I hope this post helped at least one person reflect on the current state of the alt markets.
IMO- With $CNNA- next week has the chance to be very special and a great start for the OTC season forthcoming. We are expecting 2 fundamentals and either the Form 10 or audit uploads will ignite here. All we need is it to start by Thursday …
