KK - You hit the nail on the head. My average entry price was about $1.30 on several hundred k shares. I added before the S-1 hit. If I was in at .008, the stress level obviously wouldn't be comparable as you point out. Honestly though, if I was in at .008, I would lower my position knowing what i know now with the s-1. I have a rule if you buy under 5 cents and it runs to a dollar, don't get too proud. Also, once a stock gets to dollar that was under 5 cents, it is really hard to match your exponential return you earned by continuing to hold the same stock.
I have been around the OTC for about 5 years now and have been an interest rate derivative trader for a large portion of my life. Therefore, derivatives have taught me to watch my risk CLOSELY. With that, the wild west can be extremely harsh and irrational when it wants or needs to be. I have seen good companies like this one (maybe not as good as this one) drop 50-70% in a day only to return down to the .40 -.50 area. It has happened because:
1. Like it said the otc is irrational sometimes, actually most times
2. Dilution is worse than the devil in the otc, even if it is good dilution. Believe it or not, dilution is good sometimes if the leverage brings in assets with extremely high returns
3. The RS threat. I honestly don't see how we can get to the NYSE without one. But that is where things get very interesting. Although mathematically, a RS has no impact on value, it always leads to selling, especially a lot of it when it happens down here in the jungle. Meanwhile, investors think a stock split is a good thing although mathematically it means nothing. They both go different ways. Unless a short squeeze of epic proportions hits here before the s-1 hits, a RS is inevitable.
Talking about a short squeeze, that is why I have been asking who is buying. After today, anything under 1.50 - 1.70 seems to have this investor step in. Why all the volume all of the sudden? Is someone/some firm testing the pipes for a reason? I bring this up because another B Riley stock, support.com has run from a buck or two to $30 or $40 and has been picked up on CNBC as a meme stock this week. We know with 7.7 million shares, this thing could rip to $100 in 3-4 hours. Maybe I am over thinking that possibility. But again, why the volume? Volume always brings good things.... With that said, my risk management took the conservative side and won't make me hope for a squeeze to accommodate the hundreds of millions of shares coming into the float within the next two months or even as early as tomorrow if the SEC accepts the s-1, although unlikely.....I do know there are a lot of good term investors/partners here too. But that can only explain away about 200-300 million at most. If 300 million, we still have 200 million coming our way....
This sucks because I really like this company and its future. I feel the only thing I am giving up is the chance at a mega squeeze but I can sleep a lot better knowing that than stressing about dilution and how it could wreck this party. Remember, the preferred A and B were to legacy investors and that is the huge chunk of shares that hit the outstanding recently and thaey become tradable when the s-1 is accepted by the SEC. Pref C and D are not selling in my mind upon acceptance.
Only time will tell
News 
Market Data 
Discover 
