Reverse Mergers & Low Float Plays

[Potse]

STSN(.014)...popped up a little bit......

Perhaps against my better judgement, I have accumulated positions in LUDG and STSN. Both are unattractive from a valuation/structure/debt perspective. Plenty of things not to like about both of these stocks.

Having said the above, I am thinking there is a chance that at least one of these stocks will get pushed hard at some point. Both of these companies have changed their business direction relatively recently and for the most part those changes have not received much investor attention yet. Should be potential catalysts coming for both of them. So I have accumulated positions with my fingers crossed and nose plugged.

At least part of LUDG's new business direction apparently will involve an mRNA-based cancer diagnostic test. STSN will be involved with canned oxygen.

Currently averaged in at: LUDG (.032) and STSN (.0147)

From that post about a year ago, LUDG performed pretty well. I didn't maximize the potential on that play, but did manage to get a 7.7-bagger on that investment. STSN thus far has been a stagnant/bad investment on my part. Timing on my accumulation turned out to be poor. I could have easily acquired my position at sub-penny levels.

So now that corporate activity at STSN is showing some signs of picking up, it will be interesting to see if the STSN stock has some moments in the sun. To a large extent whether this stock moves or not will depend on whether the primary share/note holder(s) allow the stock to breathe. It is entirely possible that they will just use STSN as an ATM and grind the stock around the one cent area.

Overall it is still a pretty unattractive situation, so I'm not overly optimistic about making any significant profit there. But sometimes these ugly situations can turn out to be surprisingly good.