The 3rd day is usually the charm with these parabolic movers. Plus, you knew that the company had to file a registration statement for the shares underlying those warrants before June.5th.
Most people who trade and invest in these pump and dumps usually have trouble understanding the filings, and as a result, they have a tendency to start panic selling when news such as what we saw today is finally officially released (even when it was already disclosed in prior filings). Others can end up getting margined out of their positions because they will make the rookie mistake of chasing the momentum move at artificially inflated price levels, creating a sort of perfect storm — an avalanche if you will — of terrified investors fleeing for the exit, adding to the downward momentum in the event of a large sell-off.
You get that double top pattern..Fell 60% at one point..
Pictured below are the selling shareholders. Just for anybody who isn’t up to date on the conditions, they can literally exercise their warrants at 21 cents, if you can believe that..
Just to put that into perspective, if they were lucky enough to sell the high today, it would technically result in a 5485.71% gain to their initial investment.
Quite the recovery, though. Probably some short covering in there..
Learn more in the article below. It’s kind of messy, but there’s a lot of good info in there nonetheless. If you have any questions, just leave a comment (all are approved).