Private Placement and Stock Price Movement
I've been reading some of the recent posts and wanted to posts some thoughts:
1. Even though the SP was trading around 29-30 cents, when Private Placements are done they are based on the moving average of the stock price, that’s why the PP was done at 21 cents, before the pop up to 40-50 cents the stock was trading between 10-20 cents for months etc.
2. The recent PP that was done at 21 cents does not have a hold period, therefore many investors who bought in decided to dump there shares right away and hold onto the warrant which expires in basically two years and is exercisable at 33 cents.
3. Technical indicators say that the stock has hot what is called a Continuation Wedge (Bullish). This generates a target price; the current target price of this is this technical indicator is 31-35 cents, basically more than a 50% gain from these levels. Moreover, another technical indicator was hit yesterday RSI, which fell below 30, which basically means that stock is over sold and ready for a small pop.
Please do your own research, in my own opinion only!!
Thanks.