Element Global Inc (ELGL)

[petergriffin]

Afternoon wilkman. I do not believe we will ever see 1 again but I believe we are going as low as 1.25 before rebounding.

I said in a previous post the shorters had to stay away but IMO they are not. The PPS will therefore continue to go lower over the next 2 trading sessions IMO. I do not however think this is anything to worry about for reasons below:-

1. If it is being shorted, there is no fundamental problem with the stock. Just shorters taking advantage of us longs waiting for the expected good news.

2. Volume is lower and if the PPS is to go lower you want it on decreased volume IMO. Nothing worse than high volume and lower PPS. That means sell off city but it's not happening here. I sense MMs are in on this one. You can tell from the type of trading day we had on Friday. MMs have probably formed the view that we are on the edge of our seats waiting for that super PR to come and are possibly tired of waiting. They are simply testing our patience - this is only fair in my view.

3. There appears to be a possible far from perfect but one nonetheless cup and handle forming on one of the charts. I think I saw it on the 6 month but I may also have imagined it in my dreams so please do your own DD.

FWIW, I prefer to see the below average volume continue over the next couple of trading sessions because more volume could make things harder when we do inevitably push higher again. Whatever happens the stock will behave as it is meant to. To answer your question though, IMO EREI is not to be chased with further adding until maybe Wednesday when there will probably be a better price. Naturally, you should also keep an eye on those Marketwire PRs and overall sentiment. If there's a hurricane on Tuesday with thousands stranded begging for food, guess what the PPS will tick higher.

None of the above represents buy, add, sell or hold recos. JMO which many of you could consider to be complete garbage.