DILUTION AGAIN:
Feel free to ignore the last email. It was simply sent by mistake and is an exact copy of yesterdays email.
MRNJ and ATNP had a great start this morning as expected. Both opened in the green with ATNP in particular reaching highs of +(40)%up ( 100% from yesterdays low), and finishing strong at +(19.35%).
Unfortunately MRNJ was not so lucky opening up at (+7%), yet unable to fend off the bears and closing at the low of the day at -(21)%
Curious as to what could stall MRNJ's recovery we called the transfer agent to see if the outstanding shares had been increased. And indeed we found that they had been slightly increased from approx 67,000,000 to 85,000,000.
We at Ivy League OTC had mixed feelings about the increase. On one hand the increase is very small, and should have a minimal real effect on the pps. MRNJ is still in a very hot sector right now, and its market cap of approx 5 million is way undervalued when you consider it is the 4th largest developer in a 2.4 billion dollar industry.
On the other hand we are still waiting to see what the increase in shares outstanding will be used for, and feel as if investors are hesitant to buy because they are waiting on an answer for this question as well.
We still like the prospects of MRNJ but until the company releases information concerning what the increase in shares will be used we are forced to give MRNJ a rating of a "C".
We are still accumulating MRNJ at these levels, but we warn that the risk has increased and we are unsure about how investors will take this slight dilution.
As for ATNP we really like the bullish move we've seen in the past two days and think there's a good possibility .009 will be tested on Friday.
However, as always we urge members to have their proper exit and holding strategies completely planned out before each trading day for your protection.
No matter how bullish we may be on a particular stock we urge members to consider at least taking 1/4 of profits off the table when they are up a substantial % on any of our picks. This way you still can benefit if the run continues much higher, however if there's a pull back you minimize your damage and have some funds to average down later.
Happy Trading,
Ivy League OTC
