@Jinyyy:$Torchlight Energy Resources(TRCH)$Why is this a well plan trap?1. Reverse merger - Draw attention.2. Announce special dividend and claiming can be between $1-20. People start buying 3. File for dilution of 100m. Slowly start diluting secretly. Short interest to float % falsingly increased4. Shareholders has to hold from 22nd-24th. File for another 150m dilution and tell everyone he has finished his 100m dilution. 5. Price drop- should I hold to get the dividend or sell to cut loss? HODL - dead 6. While people hold the line, he can start his 150m dilution and hopefully finish by 25th.7. After getting the dividend, people start selling. Price drop even more [Sad] Many people will say we don’t know how much is the dividend wort
$Torchlight Energy Resources(TRCH)$ Torchlight Energy Resources Inc. (NASDAQ: TRCH) has reversed a two-day slide that had the stock giving back much of its massive 83% gain. After markets close today and before they reopen on Friday, the company will put a dollar amount on the special dividend it will pay existing shareholders prior to its combination with Metamaterial due to be completed next week.
$Torchlight Energy Resources(TRCH)$Why is this a well plan trap?1. Reverse merger - Draw attention.2. Announce special dividend and claiming can be between $1-20. People start buying 3. File for dilution of 100m. Slowly start diluting secretly. Short interest to float % falsingly increased4. Shareholders has to hold from 22nd-24th. File for another 150m dilution and tell everyone he has finished his 100m dilution. 5. Price drop- should I hold to get the dividend or sell to cut loss? HODL - dead 6. While people hold the line, he can start his 150m dilution and hopefully finish by 25th.7. After getting the dividend, people start selling. Price drop even more [Sad] Many people will say we don’t know how much is the dividend wort
$Torchlight Energy Resources(TRCH)$At this rate, Friday can really drop to 1-3 dollars. Imagine when those who get dividend suddenly sell. Right now, trch should be trying to issue all their next batch of shares before Friday.
$Torchlight Energy Resources(TRCH)$ The CEO has just issued 11,738,345 shares (approximately $100,000,000) and set to issue more $150,000,000. I just don't like the the way they are doing this, announcing this very late at the deadline for dividend. Good luck to you guys and hope they don't screw you guys over.