Medivolve Inc MEDVF

RE:RE:EPS (0.02)

[Enrique]

Though I will take back half of what I said when thinking about it more, sorry for the sass there buddy, you're contributing your thoughts and shouldn't have been so rude. It's not the EPS to look at but the absurdly high revenues and still managing to have a loss 1/3rd of the market cap is alarming. But here are the main reasons this dropped today since the fking cheerleading cult on CEO got me banned for 2 days there due to telling them the truth. CEO makes Stockhouse look like a civilized community full of high Wall St performing brokers. CEO is a junk house. For the record I took a small trade yesterday and forgot to set my sell order at open today..... Anyways here's why I think it happened:

1. THE FLOAT. This is the main reason why. Any spike will get sold off. Just look at the chart. There's no mystery here. The spike above .08 and quickly slammed down was my first hint that this was gonna plummet (though unfortunately for me I was busy between 920-950...). Excess supply for a weakening demand. Excess supply is an understatement.
2. The Catalyst. This is why people were buying MEDV yesterday (the lead up to earnings) and why people were still holding who bought back in winter. Traded this 2 or 3 times successfully then, today sadly wasn't successful for me, it happens. That's all I heard when it was retracing from the teens (wait till FY Earnings in March). People just flat out gave up when they saw the loss and the lack of clarity in their pivot.
3. The Technicals. TEXTBOOK FALSE BREAKOUT. .09 was resistance and .065 was ultimate support (more on a good trade opp shortly). Once .065 got dumped through I knew my trade was done for and sold at .065. Best to get out than to go for the extra half penny, especially since my sizing was small. It's gonna take A LOT to see above .065 again imo.
4. Their Outlook. They noted that COVID was lessening and didn't necessarily have a clear plan moving forward (from what I interpreted at least). These financials are likely a one-off. Reminds me of MRS in a way. With that and huge SG&A costs (overhead), it made sense why the reception was negative. Also reminds me of SCRN which I think is MEDV's fate.
5. Cash Position. They're going to need to raise. Especially with the FAT FLOAT this is a huge red flag. They're going to need to R/S in which it'll likely plummet from post split with an eventual run (usually happens in my experiences).
6. The Exchange. NEO seems to be bipolar in my expierences. Tons and tons of manipulation with algos/MMs in complete control. I really find these NEO stocks to be stuck in doldrums for insanely long periods of time or have MASSIVE runs (eg. CYBN, DEFI, COIN, etc.). Not a big fan of this exchange, but maybe someone can chime in who knows more about the NEO than I.

All in all for me, it was a gaffe for forgetting to set an order. For many, it's some of their savings being crapped on by awful management and market makers who have retail by the necks. Very shady stuff, won't be the last time we see this either. If anyone's looking for a trade here (many better trades imo out there) I'd be looking at .05 (gap fill, I have a bid there) and .04 (previous low) as spots to give it a shot. But I'd only expect a 20-25% gain in either case.

Very sorry to those who lost on this big, except for the CEO Cult. They're absolute cancer. Always do your own DD and use this experience to think what the market would do. I'm still learning on Year 4 of trading trust me, it's all a process. But don't get stumped into holding something you know is crud. It kills your fiscal but more importantly your mental capital. Wishing everyone the best here, I've long moved on.