equijohn, I see that RFMK continued the rally and
Post# of 11899
Posted On: 01/08/2014 6:58:54 PM
equijohn,
I see that RFMK continued the rally and made a new high today at $0.0024.
My own opinion is that ALL of the "pot" stocks are getting a massive lift right now because of investors anticipating developments in the emerging canna industry (because of legalization).
Also the sector was rather beat-down for months toward the end of the year so it is not surprising that the sector is experiencing a lift. I cannot predict the future, no one can possibly know where the stock will go in the coming days, weeks or months, however I was rather impressed with the daily volume today. Nearly 400M shares were traded in a single day today! I believe that is a record! Volume precedes price so if there is to be any further lift in the price I would imagine it would be accompanied by increasing volume. However we know from the last official report that the public float is just over 500M though that was from several months ago, so perhaps it is larger now. At any rate, it could be closer to say 800M shares which if correct would mean that roughly half of the public float has changed hands. Then again no one can know to what extent the daily shares are "shuffling" which means if the bot algorithmic trading is very high and a large proportion of the volume of daily shares were traded from trader A to B to C and back to A again among other similar scenarios, then we can assume that the "churn" caused by that may be obfuscating the degree to which the volume increase has aided a more healthy trading environment in the stock. Who knows, difficult to tell, it is. One interesting point is that finally today the short sale ratio was just over 25% of the daily total which seems to be a little more usual and normal for regularly trading stocks.
There are some negatives though and IMO they reside in the technicals. Because of this recent rally, the RSI is spiked up above the 90 level and A/D line is asymptotic along with other stochastic measures so on a technical basis, the stock seems to have run somewhat ahead of itself. Then again, traders must remember that the stochastic charts may be somewhat skewed toward appearing "spikey" because for so long the stock did not move at all and then during so small a time period the price has spiked sky high. Just as car tires are inspected and safety rating approved at a maximum of certain speeds, so are stocks, meaning that with tires one cannot expect a linear causation of measures and wear/tear above a certain threshold velocity. Above a certain speed, there is just no telling what could happen to a tire, chaos interjects at high speeds and the structural integrity of the tire is no longer known or predictable. Also with stocks there is no telling what could happen next now that the stock has spiked so far so fast, it could very well continue to sky rocket but it could also fall at any moment, it is unknowable.
In my opinion the only thing RFMK followers and investors can know for certain is what the CEO has done so far with this company by reading filings and all that has been promised in PR's and announcements. I still believe there is a rather large gap from what has been promised by the CEO for years versus what has been delivered to shareholders as shareholder value. I still believe it is unclear and while I hope the best for shareholders I personally choose to simply wait on the sidelines until the CEO actually comes through with realized corporate accomplishments. The CEO did mention that the deadline is March of this year so positive news could come anytime from now until then but choose to believe when I see it. I believe an audited 10K will go a long way to restoring investor confidence.
My advice to traders would be to keep an eye on the stochastics and the volume and also what the action is with the other PK "pot" stocks. My advice to long term fundamental/value investors such as myself would be to be patient and simply wait for the CEO to realize certain promised corporate goals and then we can analyze the developments openly and fairly and make conclusions and assessments on the company's worth at that point.
In the meantime it is quite interesting to watch the stock fluctuations, these types of moves are rare for illiquid volatile PK stocks.
Difficult to see the future is.
GLTA
$RFMK
I see that RFMK continued the rally and made a new high today at $0.0024.
My own opinion is that ALL of the "pot" stocks are getting a massive lift right now because of investors anticipating developments in the emerging canna industry (because of legalization).
Also the sector was rather beat-down for months toward the end of the year so it is not surprising that the sector is experiencing a lift. I cannot predict the future, no one can possibly know where the stock will go in the coming days, weeks or months, however I was rather impressed with the daily volume today. Nearly 400M shares were traded in a single day today! I believe that is a record! Volume precedes price so if there is to be any further lift in the price I would imagine it would be accompanied by increasing volume. However we know from the last official report that the public float is just over 500M though that was from several months ago, so perhaps it is larger now. At any rate, it could be closer to say 800M shares which if correct would mean that roughly half of the public float has changed hands. Then again no one can know to what extent the daily shares are "shuffling" which means if the bot algorithmic trading is very high and a large proportion of the volume of daily shares were traded from trader A to B to C and back to A again among other similar scenarios, then we can assume that the "churn" caused by that may be obfuscating the degree to which the volume increase has aided a more healthy trading environment in the stock. Who knows, difficult to tell, it is. One interesting point is that finally today the short sale ratio was just over 25% of the daily total which seems to be a little more usual and normal for regularly trading stocks.
There are some negatives though and IMO they reside in the technicals. Because of this recent rally, the RSI is spiked up above the 90 level and A/D line is asymptotic along with other stochastic measures so on a technical basis, the stock seems to have run somewhat ahead of itself. Then again, traders must remember that the stochastic charts may be somewhat skewed toward appearing "spikey" because for so long the stock did not move at all and then during so small a time period the price has spiked sky high. Just as car tires are inspected and safety rating approved at a maximum of certain speeds, so are stocks, meaning that with tires one cannot expect a linear causation of measures and wear/tear above a certain threshold velocity. Above a certain speed, there is just no telling what could happen to a tire, chaos interjects at high speeds and the structural integrity of the tire is no longer known or predictable. Also with stocks there is no telling what could happen next now that the stock has spiked so far so fast, it could very well continue to sky rocket but it could also fall at any moment, it is unknowable.
In my opinion the only thing RFMK followers and investors can know for certain is what the CEO has done so far with this company by reading filings and all that has been promised in PR's and announcements. I still believe there is a rather large gap from what has been promised by the CEO for years versus what has been delivered to shareholders as shareholder value. I still believe it is unclear and while I hope the best for shareholders I personally choose to simply wait on the sidelines until the CEO actually comes through with realized corporate accomplishments. The CEO did mention that the deadline is March of this year so positive news could come anytime from now until then but choose to believe when I see it. I believe an audited 10K will go a long way to restoring investor confidence.
My advice to traders would be to keep an eye on the stochastics and the volume and also what the action is with the other PK "pot" stocks. My advice to long term fundamental/value investors such as myself would be to be patient and simply wait for the CEO to realize certain promised corporate goals and then we can analyze the developments openly and fairly and make conclusions and assessments on the company's worth at that point.
In the meantime it is quite interesting to watch the stock fluctuations, these types of moves are rare for illiquid volatile PK stocks.
Difficult to see the future is.
GLTA
$RFMK
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