Reminder of my analysis on August 28 - the day the
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Posted On: 09/23/2018 10:42:48 AM
Reminder of my analysis on August 28 - the day the reverse split was announced.
Trading Summary / Outlook - August 28.
The reverse split at midnight tonight - promulgated on the official SEC website - came as a complete surprise to me. As those experienced at trading in this price range know, there was no need for it as there was headroom between the A/S and the O/S, the O/S had been reduced, there has been no dilution whatsoever in 2017 and 2018, and the stock had traded the equivalent of the entire O/S changing hands in less than a year - although of course were a few relatively large holders who never parted with all their shares whilst trading throughout and many who came and went with relatively small amounts. In addition, the company did not notify the NV SOS of the r/s when they changed the company name and confirmed the new unchanged share structure.
However, on the plus side, the company handed experienced, serious traders a huge opportunity today by not making the split immediate - that enabled those who so desired to increase their share count significantly by buying large amounts at prices that have not been available in the modern era from those that either panicked, were smallholders or who didn't possess the expertise or will to trade at the higher levels after a r/s.
There was some evidence that MMs were trying themselves - or on behalf of clients - to get the price down to .0001 for the majority of the buying as the volume of trades at both .0003 and .0002 did not reflect the bids shown.
When it was obvious that there would be serious buying at .0001, the bid was topped up, .0001s appeared on both the bid and the ask, and the first big buy order at .0001 on the ask took quite some time to execute.
The majority of the shares bought at .0001 were bought on the ask with individual orders as large as 36M. After 36M was bought out of 77M, the rest was taken within minutes mainly in 5M/10M chunks.
When all the .0001 had been bought out, and the .0002s were up, after a small amount was bought there was only 114M left - probably all from people who tried to sell unnecessarily for a loss who had not realized the potential. Subsequently, about another 5M was bought by those who bid .0001s and tempted some of the sellers from .0002 to trade at .0001.
The summary of buying by price has already been posted earlier.
What today's action has done is clear out a lot of short term holders from .0004/5/6 and some long term holders from .0007/8/9 range, and concentrated the small float in the hands of far fewer traders at the equivalent of .3 / .2 / .1.
Looking forward, we should see DIGXD open in the .1 > .2 range.
We can expect brokers to have the shares to enable on-line trading within a few days.
Clearly there is a plan - the company would not have had a change of CEO, change of company office in a different state, changed the name against the ticker (whether by as yet announced acquisition or reverse merger), and instituted a r/s to get the price up by a factor of 1000 for no reason.
Whilst awaiting announcements there will be ample opportunity to trade legacy shares in the .1 > .2 range and / or the ability to trade shares bought below .1 to above .1 over a significant spread if one develops. Both are better than the stalemate that developed at .0003 x .0004/5 thanks to the basher games on iHub over the past several months. A whole new range of price options have suddenly opened up now.
The best outcome would be an announcement from the company that the new CEO John English - who registered Eco Innovation Group, Inc in June 2017 - has taken it public and that there will be a ticker change. DIGXD has an exceptionally thin share structure now (1000 times thinner than before) and is even thinner to the upside to $1 than it was to .0010 previously with some of the previous holders above .0003 now gone. It is of course possible that the end game is to uplist in due course - time will tell.
In the meantime, it should get exciting again - particularly for those who are in no hurry to sell and have shares to trade at all the relevant price points likely to be seen ahead.
Original post #3143: https://investorshangout.com/post/view?id=5192983
Note that the following has already played out as predicted or better:
New President John English did indeed take his company Eco Innovation Group, Inc public - there was the added bonus that all previous subsidiaries have reverted to private ownership and previous share interests of those involved dissolved.
There is indeed going to be a ticker change to a more appropriate acronym for the new company - ECOX requested for Sep 25 - much earlier than expected (lead time is usually 6 weeks so the President was clearly working on this in early Aug).
$DIGXD did indeed open in the .1 > .2 range and - apart from a few insignificant paint downs from basher / manipulators early on in the .0701 > .0800 range which were backstopped by the serious traders in this - has been maintained in that range ever since - for 15 trading days - closing 100% up from the pre r/s price of .1 (.0001) at .2 on Sep 21.
The new company and its TA did indeed get the new shares to brokers in a timely manner and brokers re-enabled on-line trading only 2.5 days after the r/s took effect.
Trading Summary / Outlook - August 28.
The reverse split at midnight tonight - promulgated on the official SEC website - came as a complete surprise to me. As those experienced at trading in this price range know, there was no need for it as there was headroom between the A/S and the O/S, the O/S had been reduced, there has been no dilution whatsoever in 2017 and 2018, and the stock had traded the equivalent of the entire O/S changing hands in less than a year - although of course were a few relatively large holders who never parted with all their shares whilst trading throughout and many who came and went with relatively small amounts. In addition, the company did not notify the NV SOS of the r/s when they changed the company name and confirmed the new unchanged share structure.
However, on the plus side, the company handed experienced, serious traders a huge opportunity today by not making the split immediate - that enabled those who so desired to increase their share count significantly by buying large amounts at prices that have not been available in the modern era from those that either panicked, were smallholders or who didn't possess the expertise or will to trade at the higher levels after a r/s.
There was some evidence that MMs were trying themselves - or on behalf of clients - to get the price down to .0001 for the majority of the buying as the volume of trades at both .0003 and .0002 did not reflect the bids shown.
When it was obvious that there would be serious buying at .0001, the bid was topped up, .0001s appeared on both the bid and the ask, and the first big buy order at .0001 on the ask took quite some time to execute.
The majority of the shares bought at .0001 were bought on the ask with individual orders as large as 36M. After 36M was bought out of 77M, the rest was taken within minutes mainly in 5M/10M chunks.
When all the .0001 had been bought out, and the .0002s were up, after a small amount was bought there was only 114M left - probably all from people who tried to sell unnecessarily for a loss who had not realized the potential. Subsequently, about another 5M was bought by those who bid .0001s and tempted some of the sellers from .0002 to trade at .0001.
The summary of buying by price has already been posted earlier.
What today's action has done is clear out a lot of short term holders from .0004/5/6 and some long term holders from .0007/8/9 range, and concentrated the small float in the hands of far fewer traders at the equivalent of .3 / .2 / .1.
Looking forward, we should see DIGXD open in the .1 > .2 range.
We can expect brokers to have the shares to enable on-line trading within a few days.
Clearly there is a plan - the company would not have had a change of CEO, change of company office in a different state, changed the name against the ticker (whether by as yet announced acquisition or reverse merger), and instituted a r/s to get the price up by a factor of 1000 for no reason.
Whilst awaiting announcements there will be ample opportunity to trade legacy shares in the .1 > .2 range and / or the ability to trade shares bought below .1 to above .1 over a significant spread if one develops. Both are better than the stalemate that developed at .0003 x .0004/5 thanks to the basher games on iHub over the past several months. A whole new range of price options have suddenly opened up now.
The best outcome would be an announcement from the company that the new CEO John English - who registered Eco Innovation Group, Inc in June 2017 - has taken it public and that there will be a ticker change. DIGXD has an exceptionally thin share structure now (1000 times thinner than before) and is even thinner to the upside to $1 than it was to .0010 previously with some of the previous holders above .0003 now gone. It is of course possible that the end game is to uplist in due course - time will tell.
In the meantime, it should get exciting again - particularly for those who are in no hurry to sell and have shares to trade at all the relevant price points likely to be seen ahead.
Original post #3143: https://investorshangout.com/post/view?id=5192983
Note that the following has already played out as predicted or better:
New President John English did indeed take his company Eco Innovation Group, Inc public - there was the added bonus that all previous subsidiaries have reverted to private ownership and previous share interests of those involved dissolved.
There is indeed going to be a ticker change to a more appropriate acronym for the new company - ECOX requested for Sep 25 - much earlier than expected (lead time is usually 6 weeks so the President was clearly working on this in early Aug).
$DIGXD did indeed open in the .1 > .2 range and - apart from a few insignificant paint downs from basher / manipulators early on in the .0701 > .0800 range which were backstopped by the serious traders in this - has been maintained in that range ever since - for 15 trading days - closing 100% up from the pre r/s price of .1 (.0001) at .2 on Sep 21.
The new company and its TA did indeed get the new shares to brokers in a timely manner and brokers re-enabled on-line trading only 2.5 days after the r/s took effect.
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"Per Ardua Ad Astra" - "Through Adversity To The Stars"
A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.
A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.
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