Good morning,
Now it's time to pay attention! We are on a threshold for a major move north. Expecting an announcement any day now.
I've been watching the tape for the last couple of weeks and the dilution is still not a problem and what I expected. The increase in O/S comes from a note that has become eligible for the increase this month.
Remember, for every share that moves into the O/S column is from this note, but more importantly is still being picked up by retail traders. For every sell there is a buy. The company does not directly sell into the market without proper release of a financial statement and thus appears that the note has been exercised and what is increasing the O/S.
When the company had an O/S of 78m a few weeks back and now the O/S is 252m allows for liquidity and what was needed and one reason why I picked up this issue with the understanding that the increase in O/S was needed and where we are now.
The company is still a buy at this range, but accumulation at this level must be taken with extreme caution.
Let me say one thing about the company and its R/S over the last couple of years. This is never a good thing, but an extremely negative sentiment among traders. There are directives on how many shares the company can dump during an active session, but it always stays within the overall volume that allows the number of shares hitting the market is well within the norm. Other than us retailers, we are the only folks that hold these shares. No entity holds shares that are being issued during a trading session, but us retailers and it would take the company 10 years to move their total allotted shares to just blatantly hit the market is not evident and is in accordance with the daily volume.
We needed the increase in the O/S from the last weeks to increase the liquidity. This was needed and very important as we make our way to higher highs.
Now, with that said, the company needs a catalyst to move a greater number of shares and I believe we will get an announcement very shortly and this announcement will accompany a deluge of more shares and here is where a trade can maximize their return by trading and not holding. This company is not and never will be an investment.
So, pay attention and watch for the catalyst and trade accordingly.
Have a good day
varok
