Here's why...
The Specialized Shorts Discord group came to consensus that this was perfect to short. (But not enough to trade meaningfully due to declining volume.) This is based on 2 realities:
1) This company has no hope: weak financials and weakening; dilution imminent; RS; suspect SEC whistles (touting) > don't travel to US ! ; false offices ?? not removed from website ??? ; employee problems ?; no IP owned; legally accurate but deceptive PRs; frightening f/s's about to be released asking hat in hand for cash/dilution
BUT !!!!! .................
CEO is touting stock S17(b) of the Securities Act of 1933 and it works! -- for a while...
CEO hires paid pumpers like Smiles, APlus, and others (some are Mr Evans himself)
Paid promoters rinse and repeat daily.
This creates a gap based on hype, not facts
So SHORT this shortly after the news (usually a lunchbag letdown) or rumor is out. There is always a spike for 24-48 hrs. Then short. We are seeing this today. There NEVER is good news - only rumor, hype, and future oriented opinions. ZERO good news facts. Just scan the news yourself and test this.
Constantine
SA Article:
The company’s Q1 2022 revenues slumped by 54.9% year-on-year to $2.7 million, and cash used in operating activities was $4.2 million.
Cash and cash equivalent were $8.2 million at the end of March, and I think it’s likely that more stock dilution is coming before the end of 2022.
However, the market valuation of NexTech has doubled over the past month, and it seems unlikely the reason for this is a short squeeze.
In my view, this could be a good time to open a small short position and the short borrow fee rate is 16.17%.