Hey everyone, I post this as a heads up! I lost a lot of money in a similar stock and let me tell you, Wall Street is really smart. They see companies like this know exactly what’s possible in terms of floating shares short, using options to hedge, and essentially wiping the floor with retail investors who keep buying the dip once they establish full control. Look at ALL of the stocks owned by GIG Capital and you will see a trend. I am just trying to help. So here’s my advice:
1. Set your stop and respect it! You can always get back in. If it breaks your stop, it will probably go even lower.
2. Don’t wash trade! ALWAYS wait 30 days before placing another trade. Step away. The market is not going anywhere and I can assure you that market makers on stocks like this will gladly sell you shares all day at $10, $9, $8, and you get the idea. They will print shares and sell them to you,
3. Be extremely patient and don’t be afraid to take a loss. If you hold on to the loss for too long it will simply get worse and worse.
4. PR statements, unless they have clear revenue or profit statements attached, will get faded over and over again. Do not buy the hype! Wall Street is an expert at playing these announcements - lull you in, then tank it.
5. Remember the market cap is really small! And if the stock drops it will get even smaller. No one is better at cellar boxing these small market cap companies than Wall Street. They They will box this thing into a corner to the point where no large money funds can go near it because it’s just TOO small.All in all be careful.
I just got slammed a similar stock to this. Don’t chase and please don’t do anything dumb. Just take a step back - the market is always open and there are always people ready to sell you shares.
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