Hey Wellness....this one is reminding me a lot of L*CN...which ran from .02 to .24 in something like 2-3 weeks. I'm basing this on the way it was trading on Friday....lots of volume leaving folks with lots of questions, but the play had good potential and proved it.
I'll share with you where I am with this one...disclosure: I'm in / holding and likely accumulating more. I think this will run far and fast from here.
What worries me: The volume here was HUGE relative to average and it was moving nicely intra-day for the better part of the day...setting new highs as it went along. the gains didn't hold though, so in light of the volume and close, one can understandable say 'dilution'. The daily candlestick chart is showing more distribution than accumulation on the day.
Now...for why I'm believing this is going higher.
*This company is only now beginning to to inform their shareholders of the significant progress they are making with regard to their financials / revenues and business growth. Going to a paper-mill makes no sense at this point in time. They also have a 36-month $10mil line of credit if funds are needed.
*Companies usually dilute into news not before news. Friday's volume was on 'no news'. They could have waited, released news, then dump. That's not what happened here. In fact, they dd a very savvy thing by releasing news in the AH on Friday, setting the stage nicely for the week ahead....and with their current SS, thre is no reason this can't produce a double or triple from current pps. 52-week is .10...lots of room to run.
* Back to volume...I didn't like the EOD close relative to volume on the surface of it, but if you look at the tape, you will see that just 10 minutes prior to the close, 27's were still up...so, the pullback into the close was somewhat exaggerated as traders closed out positions and buys already 'left the building' for their weekend.
So...back to Monday's trading. News in the AH with EXPLOSIVE new awareness in a company with a small/ supportive SS that is becoming very active on the news front and touting their significant increases in rev/s profits...what's there not to like? Bring on the momo! If I do see similar volume Monday though without substantial gains here, I'll have to question whether the company's 'financiers' are selling shares into the market.
That's my analysis FWIW! Trade this one well and go SNWT!
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