Interesting moves and occurences with small cap stocks today.
AQMS gained 42% - In the premarket, AQMS put ou ta PR that it signed a partnership with JCI and JCI will acquire 5% of AQMS. JCI is a huge industrial company. This is huge for proof of concept for AQMS, and with its market cap of close to $200M before the news, one could be able to see it was a big deal, even if they didn't know the company. The stock opened at $13.80, and went much higher throughout the day. One could've bought the stock at the open, and not had much stress/risk as it never fell much below the opening price.
Tomorrow this stock could go up or down. Let the market decide which way it goes and you'll have your answer to short or go long.
LPX gained 9%. It reported earnings the morning of 2/8. It was favorable, and the stock went up 5%. Today, the stock went up another 10% on an ug to buy from neutral by DA Davidson, and raised PT to $27 from $20. These situations can cause a stock to rally if a fund decides it wants to take a big position, and does it all in one day. That seems to be the case here.
BANC reported in the PM that its independent investigation revealed no unlawful actions by the bank. It opened at $17.55 after going up in the PM. It had a steady incline since then, if you bought at the open, you would have no stress the entire day, it just steadily went higher. A trader I follow on twitter, Reazz, shorted at $19.50, hoping for a pullback. But that's like picking up pennies in front of a steamroller. A much better strategy would've been to buy at the open at $17.55, and hold the whole day. But he did get a pullback at about 3pm bc he got in late and got a high price. But that pullback was very temporary, BANC made new highs at the EOD.
SKYS - up 42%. This is a small Chinese solar company. It beat on revs and earnings, must have surprised the market. It shot straight up at the open after opening at $2.81 to around $3.40. It stayed up there for about 5 minutes before crashing pretty fast, stayed flat the whole day and ended at around $2.57, so lower than where it opened. That's something to remember, for speculative, Chinese companies, try to get long at the open and let it pop hard on heavy volume. But then be prepared for a vicious fade as well, as there's a lack of trust and solid investing in a company like this.
KBSF - Up 36% solely off a reverse split. The open was actually red, then it fired up. It came down fast, then worked way back up to over $4. This company is Chinese junk. Look to short tomorrow but make sure the market is negative first.
BIOC - up 35% from a CEO's letter to shareholders. What is the value of a CEO letter? Clearly this was done to boost the stock. Does it add value to the company? Does it make people more aware of its products? I think not. This company is already clearly promotional to investors.I think this is likely a short tomorrow, look for it to start to fade, and then maybe bounce and then fade again in the morning. I would expect around a 10% retrace from its boost today.
RXDX - up 28%. Results from phase 1 trial were announced in the PM. Stock didn't go up at the open, it wasn't until noon when the stock started its uptrend. And its uptrend was strong, ending the day up 28%. A strange delayed reaction to the piece in the medical journal.
CLF - Up 19%. CLF absolutely crushed earnings and estimates. It opened the day up about 8%, but that wasn't enough. It started to take off at about 10:30. In the AH, it issued a secondary at $10.75. A pretty high secondary, not much lower than the close on the day. There doesn't seem to be a clear play tomorrow, stock will likely be pretty flat.
PERI - up 13%. The only news today was Standard and Poors reaffirmed PERI's credit rating as stable. Investors also likely bought PERI as a continuation of its uptrend because of excitement on its new CEO. The stock started creeping up at the open, and kept going up throughout the day.
ETRM up 14% on a publication saying its vbloc is successful vs obesity. The stock opened high and didn't gain anything after that. The problem with this trade is there are too many momentum traders jumping on board, it's too expected that it will keep going up. In order to make money from a trade, it must be a little unexpected, at least at first.
GLBS, a shipper that follows DRYS pretty closely. Started going up in the morning, then suddenly crashed at about 10:40am.
They did what seems like a bad equity deal, selling about 60 million shares and warrants at $1 and $1.60. The stock immediately fell from $8.50 to $5.40, but then rebounded to about $7.
What the deal includes that doesn't make it as bad, is the termination of $20M of debt and interest. But considering the stock is at $7 and worth $7, that's still giving up about $100M-$200M in equity.
WINS - This Chinese company isn't real, is a scam that has been able to orchestrate a brutal short squeeze with its extremely low float. It has hit the mainstream news lately as a phenomenon reaching $9B market cap. Today, it got hit, because once these things get exposed, holders get worried about an SEC investigation and halt, which is inevitable. Today will likely be the start of a decline back to double digits, it closed in the $300s today.