Find And Capture The Gain From Uplisting Stocks

|
Includes: AKTS, AMRH, ASPU, AYTU, BBX, BOMN, BPRN, CATC, CATS, CELH, CKPT, CODA, FDBC, FENC, FMAO, GDP, KL, LLEX, LOOP, MRDN, MTNB, MVBF, MYND, NAOV, NBEV, NHLD, NTRP, OPNT, PRPO, RCM, RMBL, SBOW, SGLB, SMTS, SSNT, SVM, TKAT, TRPX, TYME, USAS, VST, YECO, YERR, YGYI
by: Sergio Heiber
Summary

During 2017, 68% of uplisted stocks were higher priced than six months prior to uplisting.

A great majority of these stocks went to higher prices after uplisting.

A look at the sectors of these stocks offers additional insight.

The price increase momentum reverses course for some sectors.

I initially looked into the effect that uplisting has on stock price in this early 2016 article where I reviewed stocks that had uplisted for the first three quarters of 2015. The conclusion of that work was that a profit exceeding 25% was available in 60% of the stocks that uplisted during that period and that looking at these stocks in April of 2016 only 10% were trading at a higher price than when uplisted.

In this article I review the majority of stocks that were uplisted in 2017 ( three were excluded for issues such as stock did not trade in U.S. market prior to uplisting) and take a closer look at the data than in my previous article and I present how to easily find uplisting candidates.

Upside

The Russell 2000 index (RUT), is generally used to measure small cap stock performance. RUT gained 12% from the beginning of 2017 to the present. The group of stocks studied for this article enjoyed a price gain of 35%, outpacing the RUT in the period six months prior to listing until the closing price on the first day of uplisting.

I made the assumption that the public was informed of the intent to uplist within this six month period and wanted to measure if this was a favorable time to invest. 65% of the stocks I reviewed were higher priced at uplist than six months prior. The momentum didn't stop at uplisting for the majority of stocks as 79% went on to reach a further 57% gain on their subsequent 52 week high.

Downside

There is downside risk as the average 52 week low was -45%. The momentum on the overall group comes to a halt as time elapses. Current prices for the group averages out to 15% lower than their uplist price and only 42% of these stocks are cureently trading at a higher price.

Sectors

I grouped the stocks into sectors to see if there were differences. There were 12 biotechnology companies in the group. These companies saw their share price rise 79%, on average, in the six months prior to uplisting and then average another 36% to new 52 week highs. It appears that uplisting has the same effect as FDA approval for these companies but then reality sets in. The biotechnology companies are currently trading on average 53% lower than their uplisting price. The Nasdaq Biotechnology Index (NBI) is up 81% since the beginning of 2017.

The 11 technology companies in the group were a little less volatile but had similar results to the biotechnology group. These companies gained, on average, 57% in the six months prior to uplisting and then enjoyed another average gain of 36% before fizzling out. Current prices for these stocks are averaging 34% lower that at uplist. The Nasdaq Technology Index (NDXT) is up 35% since the beginning of 2017.

The overall group contains 6 bank stocks. It appears that uplisted bank stocks are a solid good bet. They gained on average 20% on the six months prior to uplist, on average another 10% to new 52 week highs and currently trade at 29% higher than at uplisting. These stocks have the Nasdaq Bank Index (KBW) beat which has gained 8% since the beginning of 2017.

The Numbers

Stock Price 6 mo. prior to uplist

Uplist Price

(% +/- )

52 wk, High

(% +/- from uplist)

Recent Price

(% +/- from uplist)

52 wk.Low

(% +/- from uplist)

Americas Silver Corp. (USAS)

2.88

4.62

(60%)

4.66

(0)

2.46

(-47%)

2.05

(-56%)

Meridian Waste Solutions

(OTCQB:MRDN)

30.40

10.44

(-66%)

3.63

(-69%)

.33

(-97%)

.22

(-98%)

New Age Beverage Corp.

(NBEV)

.25

3.48

(129%)

9.99

(187%)

7.11

(104%)

1.30

(-63%)

Sigma Labs

(NASDAQ:SGLB)

9.64

3.69

(-62%)

4.48

(21%)

1.16

(-69%)

.72

(-80%)

Matinas Biopharma Holdings

(MTNB)

3.85

3.50

(-1%)

1.60

(-54%)

.83

(-76%)

.32

(-91%)

National Holdings Corp.

(NHLD)

3.23

2.80

(-13%)

6.26

(124%)

3.06

(1%)

2.08

(-29%)

Akoustis Tech

(OTC:AKTS)

2.33

4.72

(103%)

6.26

(43%)

3.06

-(35%)

2.08

(-56%)

Lilis Energy

(LLEX)

4.40

4.40

(0%)

6.30

(43 %)

4.02

(-9%)

3.10

(-30%)

R1 RCM

(OTC:RCM)

2.00

2.90

(45%)

11.00

(279%)

8.50

(193%)

3.55

(22%)

Ominto *

(OTCPK:OMNT)

3.40

9.90

(191%)

5.11

(-48%)

.90

(--91%)

.26

(-97%)

Therapix Bio

(TRPX)

8.00

8.94

(12%)

7.69

(-14%)

4.92

(-45%)

3.00

-(66%)

Takung Art .

(OTC:TKAT)

6.00

9.70

(62%)

5.05

(-48%)

.75

(-92%)

.63

(-94%)

Neurotrope

(NTRP)

12.16

19.55

(61%)

11.93

(-39%)

6.63

(-67%)

3.97

(-80%)

Goodrich Petro

(GDP)

bankruptcy 16.10

15.75

(-2%)

14.81

(-8%)

9.25

(-43%)

SilverSun Tech

(OTC:SSNT)

2.36

4.14

(75%)

4.84

(17%)

3.65

(-12%)

2.90

(-30%)

Yangtze River

Development

Limited

(OTCQX:YERR)

5.62

4.70

(-16%)

16.65

(254%)

11.63

(147%)

2.61

(-44%)

Catasys

(OTC:CATS)

5.91

9.30

(57%)

14.29

(54%)

9.86

(6%)

3.30

(-65%)

SilverBowl

Resources

(SBOW)

33.60

26.85

(-20%)

39.76

(48%)

29.90

(10%)

21.53

(-19%)

Vistra Energy

(VST)

8.98

6.40

(-29%)

26.99

(321%)

23.44

(266%)

8.88

(39%)

Farmers & Merchants

Bancorp

(OTC:FMAO)

17.50

25.50

(46%)

49.99

(93%)

43.50

(71%)

34.46

(35%)

Silvercorp Metals

(SVM)

2.74

3.29

(20%)

3.12

(-5%)

3.31

(1%)

2.12

(-36%)

Celsius Holdings

(CELH)

2.45

3.60

(47%)

6.05

(68%)

4.07

(13%)

3.05

(-15%)

Boston Omaha Corp.

(OTC:BOMN)

16.00

19.25

(20%)

35.49

(84%)

29.86

(55%)

16.50

(-14%)

Youngevity International

(YGYI)

5.46

6.07

(11%)

16.25

(168%)

11.69

(93%)

3.17

-(48%)

Checkpoint Therapeutics

(OTC:CKPT)

5.00

12.50

(150%)

7.89

(-37%)

2.89

(-77%)

2.22

(-82%)

Precipio

(PRPO)

7.20

11.10

(54%)

2.20

(-80%)

.32

(-97%)

.30

(-97%)

Sierra Metals

(SMTS)

1.90

2.78

(46%)

3.00

(8%)

2.51

(-10%)

2.13

(-23%)

BBX Capital Corp.

(BBX)

4.88

6.37

(31%)

10.17

(60%)

6.32

(-1%)

6.02

(-5%)

MYnd Analytics

(MYND)

4.60

4.17

(-10%)

4.30

(3%)

1.64

(-61%)

1.15

(-73%)

Coda Octopus Group

(CODA)

3.80

4.55

(16%)

8.44

(85%)

6.10

(34%)

3.28

(-28%)

BIO-key International

(BYKI)

2.55

3.03

(19%)

3.64

(20%)

1.32

(-56%)

1.20

(-60%)

Tyme Technologies

(TYME)

2.50

4.47

(79%)

8.30

(86%)

2.47

(-45%)

2.01

(-55%)

Bank Princeton New Jersey

(OTC:BPRN)

31.80

32.92

(4%)

35.45

(8%)

30.67

(-7%)

30.03

-(9%)

Aspen Group

(OTC:ASPU)

3.55

6.34

(79%)

9.61

(52%)

6.56

(3%)

5.85

(=8%)

Citius Pharmaceuticals

(OTC:CTXR)

3.10

3.10

(0)%

5.49

(77%)

1.70

(-45%)

1.12

(-64%)

Eastside Drilling*

(ESDI)

5.40

6.30

(17%)

9.25

(47%)

7.99

(27%)

3.53

(-44%)

Kirkland Lake Gold

(KL)

7.80

12.20

(56%)

23.86

(96%)

21.88

(79%)

11.52

(-5%)

Opiant Pharmaceuticals

(OPNT)

7.80

35.50

(355%)

48.00

(37%)

17.21

(-52%)

12.75

(-64%)

Fennec Pharmaceuticals

(FENC)

2.40

11.30

(371%)

14.99

(33%)

7.80

(-31%)

7.17

(-37%)

Loop Industries

(LOOP)

8.24

15.10

(83%)

19.00

(26%)

9.82

(-35%)

8.01

(-47%)

MVB Financial

(OTC:MVBF)

13.10

18.29

(40%)

20.40

(12%)

18.38

(0%)

14.65

(-20%)

Ameri Holdings

(OTC:AMRH)

6.51

3.49

(-46%)

13.50

(287%)

1.11

(-69%)

.70

(-80%)

NanuVivronixs

(OTC:NAOV)

6.03

4.75

(-21%)

7.20

(52%)

4.22

(-11%)

3.68

(-21%)

Aytu BioScience

(OTC:AYTU)

15.00

5.25

(-65%)

6.96

(33%)

1.23

(-76%)

.23

(-96%)

RumbleON

(OTC:RMBL)

4.90

9.15

(87%)

10.98

(20%)

9.31

(2%)

3.53

(-61%)

Cambridge Bancorp

(OTC:CATC)

66.50

73.00

(9%)

95.06

(30%)

83.56

(14%)

70.00

(-4%)

Fidelity D & D Bancorp

(OTC:FDBC)

27.52

35.98

(31%)

75.00

(108%)

65.62

(82%)

34.73

(-3%)

Yulong Eco-Materials Limited

(YECO)

4.30

3.10

(-28%)

17.87

(476%)

10.99

(255%)

1.14

(-63%)

FC Global Realty

(FCRE)

1.77

.95

(-46%)

1.98

(108%)

.18

(-81%)

.13

(-86%)

Apollo Medical Holdings

(OTC:AMEH)

11.00

10.84

(0%)

30.00

(173%)

10.84

(0%)

5.50

(-49%)

FTE Networks

(OTC:FTNW)

13.00

11.80

(-9%)

26.25

(122%)

10.37

(-12%)

6.50

(-45%)

CohBar

(OTC:CWBR)

1.67

5.50

(229%)

10.79

(96%)

3.82

(-31%)

3.68

(-33%)

Dolphin Entertainment

(OTC:DLPN)

10.00

3.75

(-63%)

9.49

(153%)

2.20

(-41%)

2.04

(-46%)

Average 23% 35% 31% 80%

Source: Pubcoceo

*Company has been delisted.

How To Use This Info

I did a search here on SA for companies that mentioned uplisting during their earnings conference call. It's a good place to start your research but be aware that not all companies that say they are intent on uplisting do actually uplist.

Search results included First Choice Healthcare (OTCQB:FCHS) which is selling near its 52 week low. The fundamentals don't look solid as their revenues have greatly slowed down and the cash flow is negative and the talk is about getting ready to apply. Still early here in my opinion, but there are two analysts offering research on this stock and that might be a good place to start researching if there are catalysts in the works.

On the other hand, OptimizeRX (OTC:OPRX) has already uplisted. This company is in the digital medical records industry with an interest in applying their technology into getting new drugs a foot in the door at Doctor's offices. Most of the stocks I reviewed continued their uptrend after uplisting. It's worth a look at this company's fundamentals to see if its running efficiently.

Conclusion

I was not convinced by my previous article that investing in stocks that are uplisting candidates was a good idea. This article illustrates that there is a good chance to capture a huge gain if you are able to get in early and that you can ride the momentum for further extensive price appreciation, but then it gets ugly for tech stocks, uglier for biotechs while bank stocks offer healthy gains and a steadier course. Unfortunately, there were not enough stocks in other market sectors to group together and offer conclusions.

I am going to take a good look at individual uplisting candidates in future articles as well as perhaps cover an uplisted company that has yet to be reviewed on S.A. and look at other opportunities in small cap stocks.

Author's note: I welcome discussion on this article. My interest is in small cap stocks. If you enjoyed this article, please click to follow me.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.