An amazing trading day.. Almost half the outstanding float of 300 million shares has traded, thus far...
And despite the fact that we spiked up to 1.55, and then retraced back down to 1.39, the daily stochastics indicate oversold and turning upward, with accumulation also indicated.
bigcharts.marketwatch.com
Thus, we might be seeing a potential for further price increases in coming days.
I still need to see it close above 1.75/share for that PnF chart to kick in for a target of $3/share.
Some folks are enthused about the concept of a Reverse Split because these normally indicate that there will be pressure on the stock. But I'm not so sure. But I do believe it will be a 1 for 5 R/S and if we obtain a $3/share range, that will translate into $15/share, which is well above the normal $10/share limitation that many institutions have in purchasing a stock.
So that's what I think might be the potential.. $2.50 to $3/share, Reverse split into a price above $10/share, and then consolidation around $10/share that will provide institutions a chance to provide a foundation for the stock and take it out of the hands of the hedge funds.
A Reverse Split, as DeBlasio stated in the CC, will permit IIP to reports earnings in pennies per share, rather than fractionals. And doing it during a period of obviously strong corporate performance is not a bad idea either.
However, I will state that I believe a 1 for 5 seems a bit excessive. That will take the outstanding shares from 300 million down to 60+ million, and that tends to limit liquidity for the big money players and will likely require a later stock split within a year or two, if business performs as well as it seems that it will. I think a 1 for 3 would be better advised, but it's too late for that now..
But all of that will transpire in June.
Hawk |
