Before I post, I will clarify that I'm am long RMLL, but I will be selling into this rally. My reasoning for this decision is outlined below. I'm sure someone will tell me where I've went wrong and convince me to hold my 25,000 shares until the stock goes to $1.00.
FWIW, didn't the placees only buy 2,000M in the pp. Big deal. That's only $400,000 bucks. I agree, this one will trade very large volumes and will likely go over $0.20 a share. Just think, Cash Money is anticipating 30,000M in trading on Monday, let's say at an average of $0.20. The placees short the hell out of the stock for $6,000M in cash. Liquidity dries up in a couple of weeks. If the stock was to fall back to $0.15 (it will likely fall further), the placees would still make 30,000M @$0.05 per share in profit from the short sale less the $400M they put out to buy the placement at $0.20. A quick profit of $1,100M in a couple of weeks.
I realize, my assumptions that the placees short all the stock traded on Monday are absurd, but it illustrates the point. I feel I've been conservative however by estimating that the shares will only fall back to $0.15. If my scenario pans out, the stock will be back at penny within six months.
Anyways. Special thanks for the liquidity on RMLL. If I can get $0.20 for my 25,000 shares, I'll have made $4,000. What's wrong with taking a little profit.
Cash Money. Convince me to keep my RMLL. Otherwise I'm going into SCS and VIP shortly after the opening bell on Monday.
Rise |
