RE:RE:IIROC TRADE RESUMPTION - SCRSellers coming in now. I wouldn't be suprised to see the gap being closed today. Lets hope not but most of the trade today is from the sellers.
Trading dilution from my experience. This apply to any stocks. No matter what, 99% of the time share price always goes down once any kind of dilution is announced. Then It usually will be pushed down below the dilution price. In SCR case $1.40. I understand why SCR did it, because there is huge positive news about legalization and also they are getting the best price at $1.40. Remember last week SCR was under 0.70 cents. So a great strategic move by management at the best possible price. Now the negative, this has killed the momentum on the stock. The stock will trade anywhere between 1.20 - 1.60 range, until the next positive update on legalization. Then it will go over $2. Ofcourse I could be completely wrong as well. Keep in mind the stock went up almost 100% in less than a week, ofcourse it will need to take a breather to consolidate. This dilution definitely is not good for short term but a great strategic move for the long term. For long term investors, you shoulnd't worry, but for short term traders, like I mentioned in previous post, if you trade smart you can maximize profit on this huge volatility swing. JMHO.