Signs of a Reverse Merger ...
- Things to look for when a stock gets % gain and volume action!
1) See if there is any recent news, if not look at past news for hints of coming events.
2) Do a full text search on message boards looking for possible spamming or rumors etc. See if no one knows yet!
3) Check the charts, look for accumulation, has it had previous gains - is it at a relative low? Learn some T/A.
4) Look for block trades, study the days trading pattern in the time and sales/transaction logs. Look for possible front loading, if a stock suddenly has volume the last few days on no announcement and then a sudden alert is e-mailed or brought to your attention.
5) View the filings, look for share structure, litigation etc. See if any share compensations have been issued (S8 or S3 filings). Are the filings up to date 10K, 10Q, or if not did the company at least file a NT 10-K or NT 10-Q. If an 8K has been filed, see what the changes made are, and review any statements of ownership, those holding more than 5% of the company stock must file a SC 13G or SC 13D.
6) Check the daily list for filing status, previous symbol changes, reverse splits and name changes.
7) 144's, See if any selling is planned by insiders.
8) Level II, If you haven't got it you should, it helps you understand the MM activity by seeing where they line up on the bid/ask.
9) Good to know if the reason for the stock movement is a result of an email blast or a current profile of some stock picking site. Look through message boards since the emails are often posted
** This is for info purposes only **
