So this is exactly how you find low float runners early, before they even rip. And im
going to show you guys how to do that step by step in this video.
We’ve seen many low float premarket gappers in the last few weeks such as FRAN, YUMA,
and most recently VIVE. and what all of these penny stocks have in common, is the fact that
they are all recent reverse split stocks.
So if you can specifically find these reverse split stocks first and tag a few alerts on
them, that means you can be ahead of the crowd and be the first to long the dip before the
rip, and make that sweet lamborghini money in 10 years.
So that’s the penny stock reverse split strategy we’re gona talk about today. And
n o, you didnt have to pay a 5000 DVD for it. You’re about to learn it for Free. Okay
you’re right, it’s not really free, all its costing you, is to destroy that like button
at the bottom of this video.
Go ahead, did you lose some money getting dumped on by chat room gurus? Then destroy
that like button. Did your wife or girlfriend or boyfriend yell at you this week? Destroy
that like button, and then call them back. Seriously I should have called him back.
Anyways If you’ve seen many of my past videos, you know I love trading low float stocks.
And ive shown you how I look for them on Finviz for free in this video. But low float reverse
split stocks are especially my favorite, why? Well that takes us to the first and perhaps
the most important step of this reverse split strategy.
And that’s to understand Why do penny stock companies choose to reverse
split?
Now we know probably 90% of penny stocks out there are sh*t. I think we can all agree to
that. Remember, companies become publicly listed to raise money from investors. And
the sole purpose of these penny stocks, are to do exactly that. No they’re not actually
working on solving cancer, or researching how to put your pets to mars.
Penny stock companies release PR, to pump their share prices up and to get unsuspecting
investors excited and throwing more cash at them. Then insiders start selling their shares
to dilute the shareholders, or the companies will file for offering and do the same thing.
Essentially these stocks are an ATM for the insiders. Just check all the stocks that have
popped in the past, KOOL, YUMA, TROV, IMRN. its the same process. Pop, dilute, and drop.
So in order to continue raising money, these stocks have stay listed on the NASDAQ. Right?
If you were an “investor”, you wouldn't want to invest in companies on OTC. there
are investor funds that are only allowed to invest in stocks on nasdaq and nyse. So thats
the first reason these penny stock companies will try very hard to maintain the minimum
requirement to stay on the Nasdaq. And the most basic requirement is to maintain a $1
bid. Penny stocks reverse split to maintain at
least $1 share price.
One of recent reverse split stocks I found recently right now is trading at twenty six
cents. And they’ve received a delisting notice from Nasdaq. Meaning in the next 90
days they must get their share prices back up to at least $1. So to do that they must
reverse split their stock. Don’t worry I’ll tell you exactly which ticker it is, how i
found this, and many other reverse split tickers in a second.
So for example, when a stock such as Yuma, files for a 1 for 15 reverse split couple
of months ago. the stock was trading around 20 cents and they have a float of 23million
shares outstanding, that means after YUma completes the split, its going to be trading
around $3.4 and the float of the stock is only going to be a round 1.5 million shares
float. Which makes YUMA now, a low float stock.
And that brings us to the second reason why these penny stock companies choose to reverse
split... Its so you can smash that like button if you havent done so already. Seriously guys
all these research and planning for these videos take me an entire day. So if you wouldnt
mind, tapping that like button, its really the easiest way to support this channel.
2. Penny stocks reverse split to minimize the share float
So back to penny stocks. The second reason these companies want to reverse split their
stock. Is to tighten their share float, and make it easier for them to pump the stock
when they do conveniently drop a news PR days or weeks after they complete the split.
Because the float of the stock is the amount of shares outstanding available for trading,
so if the stock has a low float of 1 M, that means it only takes 1 m shares being bought
and sold to rotate the share price 100%. Which is what we call, float rotation.
And thats why we see low float runners such as BPTH, going from $2 to more than $60. There
was so much demand and not enough supply. Fresh buyers are willing to bid the stock
up to $60 because not enough people were selling.
And that's exactly what these penny stock companies are looking for. They want their
share prices to be easier for new buyers to bid up and for insiders to sell their own
shares or do an ATM, at the market offering, in order to raise more money. Because like
I mentioned, these companies are listed in order to move investors’ money into their
own pockets, legally, of course.
And that's really the name of the game with these penny stocks. As small cap penny stock
traders, we must understand how this game is played. And game the system to our own
advantage.Understanding why these penny stocks reverse split is the first part, the second
part is how to find these newly reverse split penny stocks early.
An absolutely essential tool to find these potential runners is Benzinga Pro. Benzinga
pro is a news scanner that i’ve been using for more than a year. You can see i have many
different tabs open for different purposes, earnings, movers, and revers split screener.
What I have in the reverse split screener, is basically a news feed search. It automatically
updates me on Nasdaq listed small cap stocks that have the brand new headline keywords
such as “reverse split, “ delist”, “offering. You can see by searching that keyword I found
AEMD, ONVO, FVE, NNVC, and TTPH. just from doing that search.
And it’s also by searching that way that I found about about VIVE. the stock that gapped
up from $4.4 overnight to a high of $5.6 premarket on October 1st. And it spiked to a high of
$6.4 at the open before selling off. But I knew this stock could potentially run back
on September 18. Almost 2 weeks before actually run.
Because Benzinga screener picked up that VIVE got approved for a 1 for 100 reverse split
on September 18. And I was alerted about this headline by the screener.
And once I see this headline, I put this ticker into my watchlist up here, and I ring this
notification bell icon. Which you should also do for this channel, so you never miss another
lambo money video from the humbled trader.
So by clicking this alert on all these recent reverse split stocks watchlist. And i will
receive real time email and sound alerts, whenever VIVE file any SEC filings and announce
PR. So I have all the information and all the time before everyone else to do the necessary
research.
And guys seriously, the money in day trading is in the preparation and research that you
do outside of market hours. Its not from following chat room alerts and banging hot keys to buy
at $6 and sell at $6.30.
Really? You’re telling me if i follow your buy and sell alerts and screen shares thats
delayed 2 or 3 seconds, I can make millions of dollars trading from anywhere in the world
on a beach, in a lambo, or just on a toilet taking a dump? All that from only 1 to 2 hours
of work a day, and I after I pay for your $5000 DVD? Man what a steal, like literally.
In all seriousness guys, there was a chat room leading thousands of their members to
buy this dip at $6 on VIVE. The guy sold most at 6.23s and stopped out the rest after this
super fast rug pull. You think thousands of his followers with a 2 second delay got out
at 5.90s?
Now if you’re tired of following chat room alerts and not learning anything with no direction.
Stay till the end of this video. I have a small special announcement that might interest
you.
So thats the power of using Benzinga to do your search early before anyone else. So while
people are just looking at their scanner and drinking the VIVE pr koolaid and chasing it
on this run up to $6. I already knew whats likely to happen.
Thanks for the alerts I had on this ticker from Benzinga, I knew about the SEC Form 3
and 4 that were filed a few days before. In the filing you can see that Goldman Sachs
started acquiring some common shares just a few days after the stock had finish the
split on Sep 18.
Coincidence? That an investment bank is buying some of this low float trashy stock? I don’t
think so. And it’d be foolish to be thinking that Goldman sachs is really going to invest
long term in a trashy stock like VIVE. They’re an investment bank “helping these companies”
raise more capital. And they’re gona sell those beneficial common shares themselves
to make money with this pump.
And of course, I did more SEC filings research on VIVE because that's part of my process
nad I had the time to do so because I found the stock early. I know that they have an
S1 filed in early September with no effect. That means they’re going to do an offering
in the future. They can't do it yet because they don't have the notice of effect. But
the key is knowing that this company, is sh*t, and it needs to raise money. If you want to
learn more about reading penny stock SEC filings, make sure to check out these videos after.
All this research and digging in to the SEC filings is telling me before hand, that this
company VIVE. is likely to release a PR soon to prop the share prices up. And it’ would
be easy for them to do so because after the 1 for 100 reverse split, the float is only
400K. That makes VIVE a microfloat. And I want to long the squeeze up on the front side
early premarket. And get out before Goldman sachs or any other possible dilution show
up at the party.
So early on Oct 1, the stock gapped up overnight due to the PR about goldman sachs benefitial
“investment”, and the company released news that they finished an ATM offering for
6.7 million dollars. While the entire internet is going gaga over this. Oh Goldman sachs
in it, I should invest too.
The people who’ve done their research early know that this company is in the hole for
$175M of debt. And they burn through $8M every 3 months. That new 6.7M they raised in the
PR title. Wont even last them another quarter. Remember they already filed an S1 to raise
even more money in the future. So this downtrend on the daily chart due to dilution, isn’t
over. The bag holder story remains the same.
So now that we’ve gone over why reverse spits matter, how to find them early, lets
talk about how to trade and profit from these reverse split stocks.
First one is, And like I said many times before, theres money to be made waking up early and
being prepared early. Right when i get the Benzinga PR alert at 7 or 8am market time.
I know exactly how to execute, and what my support and resistance levels are on these
stocks.
Longing the dip on these premarket low float movers is a very reliable strategy. Remember
when you already have above average volume trading premarket. These stocks will move.
And If you long premarket you can either get out of all your position near highs, or hold
on to a quarter of your postiion and sell into the market open spike.
Not every low floats will spike at the open, we’ve seen many examples in the past that
these reverse splits just get dumped right at the open such as SINT, and SPI in a sellers
market. But stocks like FRAN and BPTH squeezed a lot higher before even dipping down in a
buyer’s cycle. All the major pull backs are bought up, and the stock even provide
long traders lots of opportunities to get in for multiple days before the party ultimately
collapse a few days later.
Just because the penny stocks a reverse split doesn’t mean it’ll go straight to the
moon and make it rain lamborghinis. So it’s up for you to manage your position and risks
according to current market sentiment. If you want to learn more about how to adapt
your trading in various kinds of penny stock market cycle make sure to check out this video.
So as you’ve seen earlier on my Benzinga reverse split screener, there are a few more
recent reverse split, or soon to split penny stocks that I’m tracking. And they are ONVO,
FVE, NNVC, TTPH, IFMK and AEMD. I’m giving you the tickers now. It’s up to you to do
your own due delligience. Such as researching their filings, subscribing on Benzinga for
future PR alerts just like the exact preparation process I’ve shown you before.
And no, don’t be that person who go ahead and just blindly buy everything I just mentioned.
Im not licensed, I’m not a guru, Im not a financial advisor, I dont even have a lambo
so clearly I have no clue what im talking about.
And yes, i get it, Benzinga pro is expensive, its a bit more than $115 a month on an annual
plan. But this is a business expense. An expense that can make you more than what you pay for
it per month. Benzinga has so many other great features such as as Squawk live news audio
alerts, calendars, news and research.
In trading, knowing the news a second before everyone else will help tremendously. Thats
how I learned about the spike on OBLN and then halt on PDSB early on thursday, before
the sheep came in. You can try out Benzinga pro full feature for free for 14 days using
the link below. You’re going to love it. Its an amazing tool i personally use every
hope to see you there.