Posted On: 02/05/2014 10:47:06 PM
Post# of 11899
Zaxdada,
yes, thank you, and glad I am that there are still some long term style (real) investors out there in the world who have the vision to see the potential in the very long term fundamentals. In my opinion too many investors have turned to the dark side and flip flop day trade away their money to the sharks and piranha likely because they have been burned so many times by volatility; which can destroy one's sentiment, courage and strength of will to see through the end the very long term investments.
I honestly do not know what is going on with the stock and I have only speculations and opinions as to what could be happening on a technical basis. I think we all know as much as anyone about the fundamentals for RFMK. I continue to be of the opinion that the company has potential but that the CEO must actually deliver shareholder value, in the form of audited financials, new product launch, etc etc. Until then I remain on the sidelines, but if the CEO delivers on long standing promises then IMO the company will be in a position for very positive fundamentals and long term growth which typically is good for a stock. And at that point, I imagine RFMK stock would then still be a very good opportunity for investors.
The "action" which has occurred recently and today and what will happen in the near term is I think anyone's guess. Some are pounding the table about "promos" while others think the action stems from the rise of the other MJ stocks and still others think its investors piling in anticipating good sector news to come (legalization, etc), while others believe it to just be natural momentum in the stock via day trading action. Who knows. I do not believe anyone can know. If the stock is indeed just trading naturally then it is interesting to note the volume today appears to be a record. But of course there is still the data point of the daily short volume which remains at 50% of the daily total volume so it is curious, indeed. If we are to believe that with the stock trading roughly a third of the shares in the float, the liquidity is still not great enough such that normal trades between market participants cannot occur without constant continuous short selling by "liquidity providers" then I guess the question would be at what level of daily volume is the liquidity in the stock great enough so that there are real shares enough to support the day trading activity? Hmmmmm....
The other interesting point is that this stock is still under a trade for trade designation (chill) by the DTC therefore some if not all DTC affiliated brokerages are not allowing trading in the stock (TDAmeri) while others are allowing trades but only shares for settled cash and vice versa. If the DTC chill were to be lifted I wonder how high the daily trading volume could rise up to. Hmmmm....
It is also important for followers to remember that only DTC affiliated brokerage houses who use the DTC for settlement/clearing services follow the "chill" restrictions, there are a host of other self-clearing firms who can trade the stock freely and so shorting, naked shorting and all other forms of "action" occur in stocks like RFMK without regard to DTC's designations.
What I think is very unclear is the fundamental situation for RFMK the company but what I think is very clear is the technical situation for RFMK the stock. Fundamentally we just simply do not really know what is going on until there are either filings or announcements. Technically it appears today's action was a continuation of certain stochastics and follow-through of the RSI to 80. I would also remind those who assume dumping by IronRidge, insiders, management or anyone else that the Accumulation/Distribution line has skyrocketed in recent days. Therefore it is hard to convince anyone of anything other than the fact that there is massive ACCUMULATION going on in RFMK stock. It does not look like wholesale dumping to me, just saying.
That said, the technicals look somewhat toppy at these levels and I imagine with so many new short term traders in the stock overnight, there could be a correction in the stock at some point. Note the lower Bollinger band is still at $0.0004!!! However, as I have always explained, with penny PK stocks there is no telling what they will do and they can do anything at any time.
Overall though I think many have vastly underestimated the potential of the MJ stocks and especially the few public ecig companies. This is potentially a very very big market. Just read today that CVS has quit selling cigs so this appears to be a long term trend and I believe in a few decades cigarettes will be a thing of the past and smokers will likely turn totally to ecigs. RFMK seems to be positioned well for bolt-on growth via acquisitions, so there is no telling what REAL companies they could acquire and make a LOT of money with in the future. With all the potential earnings there is no telling how many share buybacks they could execute, especially with a PPS at the sub-penny levels; I do not see anyone even mentioning these kinds of potentialities and IMO they are very real and I think many times more real than the typical basher agenda which calls this company no more than another PK stock selling scam. The naysayers continue to claim that the longs are pumping and dumping but just as you pointed out, I have seen no pumpers pumping up the stock (twitter, IH, etc) or any professional promo ad at all. These movements appear to be natural however just be cautious because the other MJ stocks have moved up very far very quickly and no doubt RFMK has likely received some of it's momentum from the sector so a pull back at some point could very well be in the cards. It should be exciting to see what happens in the coming weeks and months though for the sector and this company.
Cheers!
May the force be with RFMK
GLTA
$RFMK
yes, thank you, and glad I am that there are still some long term style (real) investors out there in the world who have the vision to see the potential in the very long term fundamentals. In my opinion too many investors have turned to the dark side and flip flop day trade away their money to the sharks and piranha likely because they have been burned so many times by volatility; which can destroy one's sentiment, courage and strength of will to see through the end the very long term investments.
I honestly do not know what is going on with the stock and I have only speculations and opinions as to what could be happening on a technical basis. I think we all know as much as anyone about the fundamentals for RFMK. I continue to be of the opinion that the company has potential but that the CEO must actually deliver shareholder value, in the form of audited financials, new product launch, etc etc. Until then I remain on the sidelines, but if the CEO delivers on long standing promises then IMO the company will be in a position for very positive fundamentals and long term growth which typically is good for a stock. And at that point, I imagine RFMK stock would then still be a very good opportunity for investors.
The "action" which has occurred recently and today and what will happen in the near term is I think anyone's guess. Some are pounding the table about "promos" while others think the action stems from the rise of the other MJ stocks and still others think its investors piling in anticipating good sector news to come (legalization, etc), while others believe it to just be natural momentum in the stock via day trading action. Who knows. I do not believe anyone can know. If the stock is indeed just trading naturally then it is interesting to note the volume today appears to be a record. But of course there is still the data point of the daily short volume which remains at 50% of the daily total volume so it is curious, indeed. If we are to believe that with the stock trading roughly a third of the shares in the float, the liquidity is still not great enough such that normal trades between market participants cannot occur without constant continuous short selling by "liquidity providers" then I guess the question would be at what level of daily volume is the liquidity in the stock great enough so that there are real shares enough to support the day trading activity? Hmmmmm....
The other interesting point is that this stock is still under a trade for trade designation (chill) by the DTC therefore some if not all DTC affiliated brokerages are not allowing trading in the stock (TDAmeri) while others are allowing trades but only shares for settled cash and vice versa. If the DTC chill were to be lifted I wonder how high the daily trading volume could rise up to. Hmmmm....
It is also important for followers to remember that only DTC affiliated brokerage houses who use the DTC for settlement/clearing services follow the "chill" restrictions, there are a host of other self-clearing firms who can trade the stock freely and so shorting, naked shorting and all other forms of "action" occur in stocks like RFMK without regard to DTC's designations.
What I think is very unclear is the fundamental situation for RFMK the company but what I think is very clear is the technical situation for RFMK the stock. Fundamentally we just simply do not really know what is going on until there are either filings or announcements. Technically it appears today's action was a continuation of certain stochastics and follow-through of the RSI to 80. I would also remind those who assume dumping by IronRidge, insiders, management or anyone else that the Accumulation/Distribution line has skyrocketed in recent days. Therefore it is hard to convince anyone of anything other than the fact that there is massive ACCUMULATION going on in RFMK stock. It does not look like wholesale dumping to me, just saying.
That said, the technicals look somewhat toppy at these levels and I imagine with so many new short term traders in the stock overnight, there could be a correction in the stock at some point. Note the lower Bollinger band is still at $0.0004!!! However, as I have always explained, with penny PK stocks there is no telling what they will do and they can do anything at any time.
Overall though I think many have vastly underestimated the potential of the MJ stocks and especially the few public ecig companies. This is potentially a very very big market. Just read today that CVS has quit selling cigs so this appears to be a long term trend and I believe in a few decades cigarettes will be a thing of the past and smokers will likely turn totally to ecigs. RFMK seems to be positioned well for bolt-on growth via acquisitions, so there is no telling what REAL companies they could acquire and make a LOT of money with in the future. With all the potential earnings there is no telling how many share buybacks they could execute, especially with a PPS at the sub-penny levels; I do not see anyone even mentioning these kinds of potentialities and IMO they are very real and I think many times more real than the typical basher agenda which calls this company no more than another PK stock selling scam. The naysayers continue to claim that the longs are pumping and dumping but just as you pointed out, I have seen no pumpers pumping up the stock (twitter, IH, etc) or any professional promo ad at all. These movements appear to be natural however just be cautious because the other MJ stocks have moved up very far very quickly and no doubt RFMK has likely received some of it's momentum from the sector so a pull back at some point could very well be in the cards. It should be exciting to see what happens in the coming weeks and months though for the sector and this company.
Cheers!
May the force be with RFMK
GLTA
$RFMK
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