Good session covered a lot of solid foundation priciniples as well as a LOT of misunderstood facts about offerings and splits. And how traders frequently react to them wrongly.
Offerings-Prospectus-Almost ALL low priced stocks need money, they will almost ALL have shelfs ready. Common misconception of newbie shorts is this means they will use them and the price will go down. NOT ALWAYS THE CASE. Pricing.http://www.investopedia.com/terms/o/offeringprice.asp-Par Value https://en.wikipedia.org/wiki/Par_value-More par value http://www.investopedia.com/ask/answers/106.aspHolding long overnight YOU NEED TO KNOW THIS, in momentums stocks.Split-Simple concept, most do it ala $AAPL just to be more accessible to wider range of investorsReverse Splits-Maintain market compliance.-Maintain legitimacy-Raise capital via offerings-Why do these run?-No fundamental reason-Reduced Float-Hot right now-Market expects them to “get the price up” in anticipation of offerings, so momentum buyers come in and shorts pile in, in anticipation of the offering. ETRMGEVO recapBCEI recapBNTC ignore earlyBNTC bad mid day trade (though ok in the end)XGTI ignoreSwing trades, covering more in the future, watch lists, webinars etc.Whats new in STT-Oracle – Full howto webinar coming soon-Paper Trading
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