Despite a solid rebound in the market, we saw all but one of the IPOs scheduled for last week get moved back to next week or thereafter. I tend to interpret this as a sign of underlying weakness in the market, particularly with regards to the mainstream IPO that was on deck for last Friday (IE). As for the low-float IPOs from second-tier underwriters, I think we may finally be reaching a point where retail traders are passing on the offerings after getting burned on a long string of these debuts that have failed to deliver any kind of upside. Asides from the ‘Stealth IPO’ setups, run-of-the-mill low-float IPOs have offered far more attractive entrance opportunities after the debut-dump than buying the IPO itself, even with warrants offered.

One fundamental change in the low-float debuts we’ve seen in the past few months compared to those from 2020/21, is that the ‘stories’ behind these stocks seems to have no impact on drumming up enough retail demand to deliver a debut “pop”. The last such setup that we saw was LITM back in November 2021 that jumped on a combination of low float plus lithium hype, and HOUR – which came to market with an ultra low float in early January after a long recess in the IPO calendar. The setups that seem to be working right now are the IPOs that are tied to Chinese investors/insiders, and buying the dips in ‘broken’ IPOs and hoping for a rally (PEV was a great example last week for a stock that sort of fit into both categories).

Going forward, I will be limiting my allocation requests on WeBull offerings to suspected Stealth Setups, such as GSUN last week: which delivered an immediate +375% return on IPO shares on the debut, and up to +640% if you timed the Day 2 run perfectly… albeit I was only allocated 15 shares. So again, no point in requesting thousands of dollars of allocation: if it’s a good one, you’ll only get a tiny fraction of what you asked for, and if it’s garbage, you’ll get a full bag.

Ok, Let’s take a look at what happened last week in IPO Land:

Golden Sun Education Group (GSUN) – June 22, 2022 | 4.4M Shares
IPO Price: $4.00
Debut Price: $19.00
Day 1 High: $19.74
Day 1 Low: $13.41
High Since Debut: $29.64
Low Since Debut: $13.41

Day 1 Action: That this one turned out to be a Stealth IPO was no surprise, the only question was at what price and which way would it move off the debut. As we typically see with these that open above the $17 threshold, it opened at $19.00 and failed to produce an immediate halt to the upside, instead, it wavered out of the gate with a touch of $19.74, before dropping down through two halts to a bottom of $13.41. But it quickly showed resilience: a move that imitated the debut drops of TOP and TNON, as it bounced back to 16.48 and proceeded to trade on choppy low volume with large spreads in a range between $14.15 on the low end and $16.82 on the high end for the remainder of the day. The Day 1 action can likely be summarized as retail allocations selling off at the debut, insiders and day traders stepping in to protect from a total collapse, with little meaningful activity for the remainder of the day.
Despite having taken a small position a bit too early just under the debut price, the resilience of the price action and low volume of just 500k shares trading on Day 1, gave me reasonable confidence that GSUN was likely to follow the path of TOP and TNON with upside moves on the near horizon. The question now was how long it would take and for how long might I have to be willing to bag hold my position before I could get out without taking a loss. My suspicion was that it wouldn’t be too long, and that I’d end up turning a profit.
My premonitions would be vindicated sooner than expected.

Day 2 Action: Day 2 began with optimism as trading in normal market hours opened at $18.55 – putting my position into green territory, and the price action held relatively even for the first hour and a half of trading: a low of $17.08 was reached without invoking any sell-off, and once lower support was established there, the stock began to mount a rally. Almost like clockwork, at 11:00 AM EST, a buying frenzy was incited, and by 11:03 GSUN was pumped into the first of two upward halts at $21.72. I decided that a win of $5/share (a +27% gain), was an acceptable win target, and exited my position with a single limit sell-order at $23.40, recognizing that I very likely was leaving considerable meat on the bone, but not wanting to get stuck any longer than I’d already been in this trade, knowing full-well that it was likely to reverse just as quickly as it had move to the upside. After flagging out of the halt in the $22.00 to $23.50 range for about 10 minutes, GSUN broke out again to halt at $25.44, opening essentially flat at $25.48 and quickly spiking up to a high of 29.64 before giving up steam and holding the $24 level until about Noon EST, when a failed breakout run just shy of $27 triggered a sell-off back down to $22.00 with further capitulation into the close to end Day 2 at $20.95.

Looking Ahead: Day 3 was more or less an off-day for GSUN, as just 161k shares were traded in a channel of $18.70 to $23.00 – essentially holding its range. It certainly appears to be setting up similarly to TOP and TNON, in which case we very likely could break through the $40 mark within the week. We’ve still only seen 1.4M shares trade hands in 3 days since the IPO, so until we get closer to the IPO float plus underwriter over-allotments, this one has a chance to keep pushing up. The danger is the virtually guaranteed near term rug-pull that likely sends the share price down below the IPO price (and realistically well below that). I will be watching for an opportunity to step into a small starter position early in the week at around the $17 level with a plan to double down if we see further downside to around $14. Stealth setups have been making delayed moves to their peaks, and with the current volume traded in GSUN, I believe we are not yet near the inevitable rug-pull event, but am not going to take what is, in all honestly, a high-risk gamble unless I catch a momentary liquidity event that provides reduced risk relative to the current price. If you decide to take a shot at this ticker, constantly remind yourself that the end-game on this kind of play is a sub-$2 stock, and the melody in this game of musical chairs will end abruptly and decisively. I’m equally ready to let this one pass on by, with plenty of targets in LPX plays and recent ‘broken IPOs’ that have aleady given up a substantial amount of risk to the point where the downside is minimal with massive potential for 100%+ to the upside… we’ll get to those next.

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A reminder before we move onto the LPX plays from last week:

I will be transitioning the IPO Newsletter to a paid membership starting on July 17, 2022. While I will continue to send out Free version with limited information, the real value of the research, analysis, and strategy ideas will be reserved for the Premium Membership community, which will be limited to 300 members.

Those who subscribe BEFORE July 17, 2022, will have an option to apply a coupon code to receive a substantial lifetime discount on their membership.

In addition to the premium newsletter content, Premium Members will be able to access a weekly live-conference video, live-streaming of select IPOs, and additional premium content that I expect to expand into the platform as a result of being able to financially justify further dedication of time, resources, and energy into this project as it evolves from a hobby into a source of income.

Click here for more details and registration.

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LPX mover Recap week of June 20-24, 2022
by Aly Angel: https://twitter.com/tradingfitgirl
Get her Guides! https://tradingfitgirl.net/trading-guides

Moving iMage Technologies (MITQ)
Catalyst: none
Type: OTC Uplist
IPO Date: 08-Jul-21
IPO Price: $3.00
LPX Date: 08-Jul-22 (multiple LPX)
LPX Period: 1-year (dir & ofc)
historical notes: 90-day 1.3m sh & 180-day 4.3m sh & 1yr dir/ ofc
Exercise Price: $1.88 & $3.00

Outstanding Shares: 10,828,378 (per 10Q)
Close day before vol: $1.05
High of the Day on vol: $1.74
Recap:

The EP’s are 1.88 and 3.00, and this ticker has been consistent pop to these prices into each LPX date. The 1-year LPX is for directors, officers and ‘All holders of Common Stock to be issued to prior holders of membership interests in MiT’ (ref 424B4 08-Jul-21 p. 25).

Looking Ahead:
From what we have seen in recent pops, a liquidity test with volume in pre-market and often into open will die out and the actual run will be a few days to a few weeks later. No way to know who is behind these, but def tickers to put on your list and watch for the consolidation and reversal after these vol pops.

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Phoenix Motor (PEV)
Catalyst: none
Type: OTC Uplist
IPO Date: 08-Jun-22
IPO Price: $7.50
LPX Date: 06-Sep-22 (90-day gen rule) & 05-Dec-22 (6-month)
LPX Period: none – 30-day over-allotment
historical notes: 90-day 1.3m sh & 180-day 4.3m sh & 1yr dir/ ofc
Exercise Price: $9.375

Outstanding Shares: 19,600,000 (per 424B4 09-Jun-22)
Close day before vol: $3.41
High of the Day on vol: $8.40
Recap:

This IPO opened below list price and was considered a ‘dud’. These have a statistical history of popping close to or over the List price w/ in the overallotment period (30 or 45 days, depending on terms).
Looking Ahead:
IPOs that fail out the gate are great to watch for the consolidation in the first week to month and then the reversal. The vol day is when you sell, as these usually gravitate back to lows, in a very short time. Def wait for the reversal after consolidation, as these can easily death drop before finding a bottom.

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Lucid Diagnostics Inc. (LUCD)
Catalyst: none
Type: IPO
IPO Date: 14-Oct-21
IPO Price: $14.00
LPX Date: 12-Apr-22
LPX Period: 6-month for 29.9m sh ref 424B4 14-Oct-21
Exercise Price: none
Outstanding Shares: 38,138,036
Closing Price Previous Week: $1.87
High of the Week: $2.95

Looking Ahead:
AH vol pop is usually an indicator of something to come, especially when there is no news to explain the volume.

Notes: PAVmed will hold approximately 75.5% of the common shares. The S-1 for initial registration is selling shareholders, and the company does not make any money from this registration (stated on page 1)
When there is a majority shareholder (+51%) we commonly see a ‘selling shareholder’s shelf registration’. This is considered non-dilutive as it is not adding new shares to the o/s or float.
Regarding the lack of EP for this ticker, I will typically only play the technical, as we do not have a price target for a long-term position.

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Well, sometimes we look at a low-float IPO sponsored by a notoriously dubious underwriter, with clear connections to China, and assume it will be a Stealth IPO… and every once in a while, we’re flat out wrong. Which is fine, as long as we maintain discipline owand pay attention to the pre-debut imbalance pricing. This is why experience is so valuable in trading IPO debuts, and why we were able to avoid disaster on last week’s sole IPO.

Another strategy we’ve discussed in terms of trading IPOs, especially the lesser-known, low-float debuts from second-tier underwriters, is the “LPX play” (Lockup Expiration). The theory behind this setup is that shares, and often times warrants, of these companies are locked up for a period of time following the IPO: typically 90, 180, or one year from the IPO, and we often see headlines announced in conjunction with these timelines that cause massive spikes in the price of these stocks. In most cases, the prices of these equities have declined significantly since the IPO, leaving the exercise price of these locked up shares/warrants a far reach from the strike price. It therefore seems less than coincidental that we see Press Releases dropped around the time of these LPX events that produce runs that often top out just beyond the exercise prices. While this is by no means a ‘rule’ – and we certainly don’t see spikes in all recent low-float IPOs, we did see quite a number of them run last week, including AERC, HTCR, MTEK, and BJDX… if you want more insights into this trading strategy, I highly recommend that you follow https://twitter.com/tradingfitgirl

Ok, Let’s take a look at what happened last week in IPO Land:

Phoenix Motors (PEV) – June 8, 2022 | 2.1M Shares
IPO Price: $7.50
Debut Price: $6.50
Day 1 High: $6.50
Day 1 Low: $4.01
High Since Debut: $6.50
Low Since Debut: $3.11

Day 1 Action: I’ll be the first one to admit that this one had me fooled… the underwriter, the shape of the offering, rumors of a large allocation to a Chinese battery manufacturer, and clear connections to China gave this one the outward appearance of a Stealth IPO. By the time we saw the pre-debut imbalance, however, it was clearly not the setup we were looking for, and we were able to avoid taking anything more than an attempt at a reversal off the opening drop (which failed to materialize, but let us out without any real damage done). Given the full allocation on IPO share requests made through WeBull, this was rather expected.

After pricing the IPO at $7.50, the pre-debut imbalance showed us pathetically dismal demand, with pricing starting in the low $3.00 with only gradual increase into the low $4 range on roughly 150k shares: also not a great setup. It appears that the underwriter tried to save the debut, with an opening bid driven up to $6.50 before the open, but the result was a mass sell-off that drove the stock down to a halt at $5.85 that opened substantially lower at $5.26 and continued down from there: halting again a few minutes later down at $4.22. The bleeding wasn’t done from there, though it opened from the halt with a green candle that peaked at $4.70 before reversing down to the low of the day at $4.01. It then baselined around $4.50 for most of the day, but failed to produce any upside momentum, eventually capitulating to shorts and panic sellers to close Day 1 at $4.05.
Suffice to say, retail got fully shafted on this one: a prime example of why it’s not a wise strategy to request more than a minimal allocation on IPOs offered by WeBull: for the good ones, they don’t give us many shares anyway, and on the bad ones where they give us full allocations, the results are typically disastrous.

Day 2 Action: The Day 2 Rally trade on low-float IPOS seems to have disappeared for the time being, as we have not seen this setup materialize for several weeks now. PEV opened down on Day 2 at $3.90 and proceeded to drop to just under $3.65 before attempting a rally back up to $3.95, but from there it simply gave up and steadily declined to close the day at $3.36. A complete bust as far as IPOs go, and we hadn’t even seen the lows on this one for the week.

Looking Ahead: I’m not sure how far down this one can descend, but Friday brought it down to further lows at $3.11, with volume reaching a pithy 299k shares. While this really shouldn’t be surprising given the general weakness of the company itself, for a low-float IPO to do this poorly with no pumpers or inside manipulation to give it any spike whatsoever has been somewhat rare. Do we get a spike at some point? I would expect so, but given that the bottom could be much lower before we see any run, I’ll be putting this one on watch for a headline rather than try to accumulate any kind of position prior to the run.

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LAST WEEK’S RECENT IPO RUNNERS

Last week brought us deluge of recent low-float IPOs that ran on PR drops, here are a few that stood out:

AeroClean Technologies (AERC)
Type: OTC Uplist
IPO Date: 11/21/2021
IPO Price: $10.00
LPX Date: 5/23/2022
Float: 4.06M Shares
Closing Price Previous Week: $2.37
High of the Week: $15.25
Headline: Purgo Air Purification Device Gets FDA Clearance
Recap:
AERC was debuted its IPO the day before Thanksgiving, and after pricing at $10 per share, proceeded to open at $40.00 and ripped up to a high of $117.35 through a series of halts. It since had descended to a baseline around the $2 mark until this headline sent the share price on a multi-day run well above the $12.50 exercise price on insider lockups.

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HeartCore Enterprises (HTCR)
Type: IPO
IPO Date: 2/10/2022
IPO Price: $5.00
LPX Date: 5/11/2022
Float: 5.44M Shares
Closing Price Previous Week: $1.09
High of the Week: $3.19
Headline: Board Authorized Up to $3.5M Share Buyback
Recap:
HTCR was a disastrous IPO as far as debuts underwritten by Boustead Securities go, and they were desperate to get insiders and pre-IPO investors out from their $2.50 buy-in point. This news event seems a bit contrived, as there is no obligation to actually follow through on the buy-back, but if they do actually repurchase the full $3.5M worth of shares, and follow up with a subsequent news release of substance, we could see a liquidity trap that surges the price even higher. Otherwise, this one will likely go back to sleep soon.

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Maris Tech (MTEK)
IPO Date: 2/2/2022
IPO Price: $4.20/unit
LPX Date: 5/3/2022
Float: 4.11M Shares
Closing Price Previous Week: $1.17
High of the Week: $1.60
Headline: Contract with Israeli Defense Company for $300k
Recap:
MTEK has been trying to pump their share price since they announced a $1M buyback at the beginning of the month for $1M shares, following that PR drop with an announcement of a $300k contract from an Israeli defense company. This headline failed to produce a sustained run, but if the price consolidates back down around $1, I expect more upside to follow on the next headline.

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Bluejay Diagnostics (BJDX)
IPO Date: 11/10/2021
IPO Price: $10.00/unit
LPX Date: 5/9/2022
Float: 11.36M Shares
Closing Price Previous Week: $1.00
High of the Week: $1.83
Headline: FDA Agrees to De Novo Pathway to Approval for Lead Drug Candidate
Recap:
Many traders have been accumulating and waiting for BJDX to run, and this headline likely gave many long term holders enough of an upside to dump their positions for a profit. The headline wasn’t all that meaningful, and the price action reflected this with a quick return to close the week at $1.20. This one will likely languish for a little while longer until substantial news arrives for FDA approval. No reason to jump into this one for a while, but will keep it on watch for future headlines.

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Marygold Companies (MGLD)
Type: OTC Uplist
LPX Date: 08-Jun-22
LPX Period: 90 Day
IPO Date: 10-Mar-22
IPO Price: $2.00Exercise Price of Common Shares: 120% list price equal to $2.40
Secondary Offering Exercise Price: S-3 29-Apr-22 Effect 12-May-22
RECAP: ran to EP in pre-market on June 3rd
Notes: states a 180-day LPX for Dir & Ofc
– Reference 424B4 Filed 11-Mar-22

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Marygold Companies (MGLD)
Type: OTC Uplist
LPX Date: 08-Jun-22
LPX Period: 90 Day
IPO Date: 10-Mar-22
IPO Price: $2.00

Exercise Price of Common Shares: 120% list price equal to $2.40
Secondary Offering Exercise Price: S-3 29-Apr-22 Effect 12-May-22

RECAP: ran to EP in pre-market on June 3rd
Notes: states a 180-day LPX for Dir & Ofc
– Reference 424B4 Filed 11-Mar-22

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Cingulate Inc. (CING)
Type: IPO

LPX Date: 06-Jun-22
LPX Period: 6 Month
IPO Date: 08-Dec-21
IPO Price: $6
Exercise Price: $6 & $7.50

RECAP: hit low at 1.01 on 26-May-22 and has reversed to 1.40’s
Notes: 424B4 20-Apr-22 selling sh for warrant exercise at $6

– Reference 10Q filed 12-May-22, 424B4 filed 20-Apr-22

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IPOs that hit 180-day LPX dates in the last 30 days, but have not run to EPs

Check date if there’s a secondary offering, as these take longer to run

STRN – EP $4.81 – $5.18 *has secondary
BEAT – EP $6
TIVC – EP $6.25

For a full list of IPOs and Uplist LPX dates and video reviews https://tradingfitgirl.net/always-learning for the direct Spreadsheet Link

I was pretty excited for the TOP IPO this week, but had a feeling that it was a bit “too obvious” of a Stealth Setup to offer a reasonable debut price… we tend to see the repeatable setups that fall under the heading of “too obvious” get played out, with no opportunity for a straightforward debut entry trade. After a string of relatively obvious Stealth setups that gave us decent entry points: with JCSE and OST providing the most user-friendly examples of the kind of Stealth debuts that give retail traders the opportunity to buy on the opening print and catch a couple halts to the upside for momentous gains; it seems that retail traders have flooded the trade to the point where either the operators of the ‘scheme’ have decided to price us out with ridiculous debut bids, or the trade has simply been ruined by overzealous buyers willing to pay opening bid prices that wipe out the opportunity for any upside.

This doesn’t mean that Stealth IPOs won’t still emerge with entry prices that give us retailers an opportunity to cash in on substantial wins from a debut order. The trick is to be patient, continue scouring the IPO calendar for hints of potential setup, and be prepared to capitalize when a new suspect is identified.

Play a Song – Save a Dog Updates

We’ve released a new album to help dog rescue efforts:

”SleepytimePiano”

It’s great relaxing background music for work, study, or falling asleep.

All you have to do is play music from TheSound.com on Spotify and proceeds go towards dog rescue efforts – it costs you nothing!

LISTEN ON SPOTIFY

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Ok, Let’s take a look at what happened last week in IPO Land:

Zong Yang Financial Group (TOP) – May 31, 2022 | 5M Shares
IPO Price: $5.00
Debut Price: $27.50
Day 1 High: $27.50
Day 1 Low: $12.60
High Since Debut: $27.50
Low Since Debut: $12.60

Day 1 Action: This was a clear Stealth setup from the start, so the only question was whether it was going to debut at a point that gave retail traders an opportunity to buy in and catch a few spikes up before it inevitably crashed down. My cutoff limit is generally at $17, but could probably be tempted to play an opening debut trade up to about $20 on one of these $4-5 IPOs, but that’s already stretching the risk/reward boundary to dangerous levels. When the pre-debut indication price goes to $30 or $40+, it’s not even worth consideration, but when we see an indication price just above $20, it starts messing with my guidelines, and I have to remind myself that the upside from there is not worth the inevitable downside.
If you got roped into buying TOP on the debut at $27.50, you probably learned a harsh lesson about why it’s not a good idea to take a chance on these setups once they’ve exceeded a certain level (again, $17 has been the magic red line). TOP opened at $27.50 and proceeded to halt down immediately to $25.40. If you panic sold out of the halt, you were exited from your position at $17.21, but probably felt pretty good about getting out before it halted again at $15.49 and proceeded to open at $14.00 before again dropping down to from there as low as $12.60 before reversing back into a halt at $15.40.
At this point, there were likely at least a few seasoned Stealth IPO traders who had set a limit order to buy in around the $13 level, as that has been the reversal point for several of these setups in recent history. This is a risky trade that I was not in a position to take (had kind of a huge personal event on Tuesday with the birth of my second daughter, so I was busy running around doing hospital visits on Wednesday when TOP debuted) – but even if I had taken a shot on this setup, it would have been for just a small position. We’ve seen plenty of Stealth IPOs that have not bounced, and ultimately, the bottom on all of them has been in the $2 bin.
Following the bounce back up to a high of $22.73, TOP maintained a bottom just above $17 and a top-end range of $22… trailing off at the end of the day to close at $16.99

Day 2 Action: Day 2 didn’t really provide much of a clear sign of which way it wanted to go… but there was certainly adequate volatility for high-risk traders who wanted to try catching bottoms and hope for a reversal. It traded down in pre-market to as low as $14.10, and see-sawed throughout the opening hours from an opening run up as high as $17.39 followed by a sell-off down to $13.36, with another rally from there to a high of $18.83, but none of this is predictable enough for my risk tolerance. Volume subsided throughout the second day, and it closed at $16.19, pretty much right where it has closed the day before.

Looking Ahead: TOP has been relatively resilient for a low-float Stealth IPO that debuted at a scorching price point, and has maintained the $15-16 range through the end of the week. We have to expect a sell-off to come any day, now, but it’s also very possible for this to mount a multi-day rally to lofty highs such as we saw with TNON, which also crashed off the debut, bounced back, and traded in a zone between $16-24 for a few days before embarking on a steady climb to as high as $60.00 10 days after the IPO. From there it crashed to $33 in the same day, and again 2 days later down to $6.78 and closed last week at $3.15. So we know where these end up, the question is whether there’s still some gas in the tank on this one: and of course, whether you’re willing to take the risk on riding this through undoubtedly tumultuous waters.

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SaverOne (SVRE) – June 3, 2022 | 2.24M Shares
IPO Price: $4.13
Debut Price: $3.50
Day 1 High: $3.50
Day 1 Low: $2.22
High Since Debut: $3.50
Low Since Debut: $2.22

Day 1 Action: After repeatedly postponing their IPO debut due to lack of demand, there was no reason to expect anything good out of SVRE, and the indicated opening trade at $3.50 with a sell-side demand may have beckoned some to try to pick off a dip-and-reverse move off the opening print, but this was not a well-advised move. The expected sell-off that followed the debut triggered halt breakers in the 3rd minute of trading down at $3.02, and the ensuing open at $2.91 failed to produce a bounce, with a bottom finally established at $2.36, and only a slight rebound from there to a subsequent high at $2.79. But from there it was just a blown IPO pattern, with no meaningful breakout through low volume with a bottom at $2.22 and a slight recovery to close at $2.56.

Day 2 Action: Day 2 is Monday, so we’ll have to wait for the weekend to see what comes.

Looking Ahead: IPO traders who have seen this setup before, may have accumulated positions down below the ‘Dental Line’ of $2.30 (tooth-hurty… yeah, dad jokes), in hopes of a Day 2 rally. If you’re already loaded up, then you’re probably planning to be up and ready to dump for a potential 4 AM pre-market spike, with the intention of holding for a possible run at any moment on Day 2 or even Day 3. But the risk on these setups is that this is stock is likely headed below $2 next week, and probably lower from there as more time elapses: so if no spike comes, then the bag just gets heavier and heavier (see ASNS and countless others).

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We seem to have exhausted the backlog of low float IPOs that had been pushing out debuts despite a weak market over the past couple of months, though we are still getting some sneaky debuts that, as expected, have produce some volatile opening moves and are worth playing on the debut with small positions if you can catch them.

Last week saw another company go live on the NASDAQ with little warning and rather unique terms defined in their F-1 filing. I spoke about it on Monday with Spencer and Aaron on Benzinga Live, but didn’t write up a newsletter at the beginning of the week, as I was a bit under the weather (but make sure to read Monday’s newsletter for an interesting setup I see on the calendar for next week).

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Play a Song – Save a Dog Updates

Our newest album will come out this week…

All you have to do is play music from TheSound.com on Spotify and proceeds go towards dog rescue efforts – it costs you nothing!

LISTEN ON SPOTIFY

+++

Ok, Let’s take a look at what happened last week in IPO Land:

Brenmiller Energy (BNRG) – May 25, 2022 | 3.34M Shares
IPO Price: Not Announced
Debut Price: $5.20
Day 1 High: $17.33
Day 1 Low: $4.15
High Since Debut: $17.33
Low Since Debut: $3.30

Day 1 Action: Given the odd terms of the IPO: no underwriter, and no issued shares; with shares only to be sold by existing shareholders (basically, a direct listing)… we expected the actual number of shares actively available on the opening print to be restively small. This forecast was accurate, as just 785 shares traded on the opening print – likely due to a lack of promotion on this debut. The second minute produced just 1,286 shares traded, before the move to pump the stock went into effect, with 5,149 shares being bought up to clear the Ask orders, and send the stock into a halt at $6.30.
From there, a three hour halt ensued, and wise traders who have seen this kind of setup before (TIRX) exited with a lofty gain, as it opened at $15.75 and proceeded to touch $17.33 before reversing back down into a halt at $15.11. This is where a stop loss would have done you no good, and why I only use limit orders to trade halts, and will exit on the opening of the halt… the rest of the day was a reversal of the spike upwards, with the second halt opening at $8.49 and subsequent halts opening at $8.33 and $6.04. That was the end of the game for Day 1, with a bottom reached at $4.15 before closing at $4.40

Day 2 Action: Day 2 gave a short lived run up to $9.50 on a couple thousand shares, but by the time shares opened for trading, it had come back down to $4.35. If you’re going to try accumulating on Day 1 bottoms for a Day 2 spike, you have to be able to trade at 4:00 AM, or you’re simply not going to get to trade the play you’re looking for on this kind of setup, as it had already fallen below $5.00 by 4:30 AM EST. The rest of Day 2 was a further decline down to $3.70

Looking Ahead: The float has expanded to 4.96M shares, but volume has still been very thin. I have no reason to expect this one to rally, though it wouldn’t take much of a manipulation play or chatroom pump to send this one. The F-1 filing was just a bit too odd for me to be able to predict which way this one will go from here, but it generally looks like this once has been selling off and I am not sure we’ve seen the end of the float expanding.

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NOTE: this is not financial advice, and I am not a financial advisor: this information is just my opinion and is for informational purposes only. I may have or take positions in the equities mentioned in this article in the next 72 hours. Trading equities is risky. Do your own research,and trade your own trade.