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How to find & buy Penny Stock Runners 2022? Reverse Split Strategy (step by step $VIVE) - YouTube
Channel: Humbled Trader
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So this is exactly how you find low float
runners early, before they even rip. And im
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going to show you guys how to do that step
by step in this video.
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Weâve seen many low float premarket gappers
in the last few weeks such as FRAN, YUMA,
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and most recently VIVE. and what all of these
penny stocks have in common, is the fact that
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they are all recent reverse split stocks.
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So if you can specifically find these reverse
split stocks first and tag a few alerts on
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them, that means you can be ahead of the crowd
and be the first to long the dip before the
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rip, and make that sweet lamborghini money
in 10 years.
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So thatâs the penny stock reverse split
strategy weâre gona talk about today. And
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n o, you didnt have to pay a 5000 DVD for
it. Youâre about to learn it for Free. Okay
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youâre right, itâs not really free, all
its costing you, is to destroy that like button
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at the bottom of this video.
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Go ahead, did you lose some money getting
dumped on by chat room gurus? Then destroy
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that like button. Did your wife or girlfriend
or boyfriend yell at you this week? Destroy
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that like button, and then call them back.
Seriously I should have called him back.
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Anyways If youâve seen many of my past videos,
you know I love trading low float stocks.
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And ive shown you how I look for them on Finviz
for free in this video. But low float reverse
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split stocks are especially my favorite, why?
Well that takes us to the first and perhaps
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the most important step of this reverse split
strategy.
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And thatâs to understand
Why do penny stock companies choose to reverse
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split?
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Now we know probably 90% of penny stocks out
there are sh*t. I think we can all agree to
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that. Remember, companies become publicly
listed to raise money from investors. And
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the sole purpose of these penny stocks, are
to do exactly that. No theyâre not actually
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working on solving cancer, or researching
how to put your pets to mars.
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Penny stock companies release PR, to pump
their share prices up and to get unsuspecting
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investors excited and throwing more cash at
them. Then insiders start selling their shares
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to dilute the shareholders, or the companies
will file for offering and do the same thing.
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Essentially these stocks are an ATM for the
insiders. Just check all the stocks that have
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popped in the past, KOOL, YUMA, TROV, IMRN.
its the same process. Pop, dilute, and drop.
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So in order to continue raising money, these
stocks have stay listed on the NASDAQ. Right?
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If you were an âinvestorâ, you wouldn't
want to invest in companies on OTC. there
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are investor funds that are only allowed to
invest in stocks on nasdaq and nyse. So thats
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the first reason these penny stock companies
will try very hard to maintain the minimum
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requirement to stay on the Nasdaq. And the
most basic requirement is to maintain a $1
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bid.
Penny stocks reverse split to maintain at
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least $1 share price.
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One of recent reverse split stocks I found
recently right now is trading at twenty six
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cents. And theyâve received a delisting
notice from Nasdaq. Meaning in the next 90
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days they must get their share prices back
up to at least $1. So to do that they must
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reverse split their stock. Donât worry Iâll
tell you exactly which ticker it is, how i
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found this, and many other reverse split tickers
in a second.
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So for example, when a stock such as Yuma,
files for a 1 for 15 reverse split couple
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of months ago. the stock was trading around
20 cents and they have a float of 23million
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shares outstanding, that means after YUma
completes the split, its going to be trading
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around $3.4 and the float of the stock is
only going to be a round 1.5 million shares
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float. Which makes YUMA now, a low float stock.
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And that brings us to the second reason why
these penny stock companies choose to reverse
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split... Its so you can smash that like button
if you havent done so already. Seriously guys
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all these research and planning for these
videos take me an entire day. So if you wouldnt
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mind, tapping that like button, its really
the easiest way to support this channel.
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2. Penny stocks reverse split to minimize
the share float
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So back to penny stocks. The second reason
these companies want to reverse split their
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stock. Is to tighten their share float, and
make it easier for them to pump the stock
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when they do conveniently drop a news PR days
or weeks after they complete the split.
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Because the float of the stock is the amount
of shares outstanding available for trading,
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so if the stock has a low float of 1 M, that
means it only takes 1 m shares being bought
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and sold to rotate the share price 100%. Which
is what we call, float rotation.
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And thats why we see low float runners such
as BPTH, going from $2 to more than $60. There
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was so much demand and not enough supply.
Fresh buyers are willing to bid the stock
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up to $60 because not enough people were selling.
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And that's exactly what these penny stock
companies are looking for. They want their
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share prices to be easier for new buyers to
bid up and for insiders to sell their own
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shares or do an ATM, at the market offering,
in order to raise more money. Because like
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I mentioned, these companies are listed in
order to move investorsâ money into their
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own pockets, legally, of course.
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And that's really the name of the game with
these penny stocks. As small cap penny stock
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traders, we must understand how this game
is played. And game the system to our own
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advantage.Understanding why these penny stocks
reverse split is the first part, the second
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part is how to find these newly reverse split
penny stocks early.
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An absolutely essential tool to find these
potential runners is Benzinga Pro. Benzinga
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pro is a news scanner that iâve been using
for more than a year. You can see i have many
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different tabs open for different purposes,
earnings, movers, and revers split screener.
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What I have in the reverse split screener,
is basically a news feed search. It automatically
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updates me on Nasdaq listed small cap stocks
that have the brand new headline keywords
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such as âreverse split, â delistâ, âoffering.
You can see by searching that keyword I found
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AEMD, ONVO, FVE, NNVC, and TTPH. just from
doing that search.
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And itâs also by searching that way that
I found about about VIVE. the stock that gapped
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up from $4.4 overnight to a high of $5.6 premarket
on October 1st. And it spiked to a high of
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$6.4 at the open before selling off. But I
knew this stock could potentially run back
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on September 18. Almost 2 weeks before actually
run.
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Because Benzinga screener picked up that VIVE
got approved for a 1 for 100 reverse split
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on September 18. And I was alerted about this
headline by the screener.
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And once I see this headline, I put this ticker
into my watchlist up here, and I ring this
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notification bell icon. Which you should also
do for this channel, so you never miss another
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lambo money video from the humbled trader.
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So by clicking this alert on all these recent
reverse split stocks watchlist. And i will
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receive real time email and sound alerts,
whenever VIVE file any SEC filings and announce
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PR. So I have all the information and all
the time before everyone else to do the necessary
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research.
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And guys seriously, the money in day trading
is in the preparation and research that you
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do outside of market hours. Its not from following
chat room alerts and banging hot keys to buy
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at $6 and sell at $6.30.
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Really? Youâre telling me if i follow your
buy and sell alerts and screen shares thats
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delayed 2 or 3 seconds, I can make millions
of dollars trading from anywhere in the world
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on a beach, in a lambo, or just on a toilet
taking a dump? All that from only 1 to 2 hours
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of work a day, and I after I pay for your
$5000 DVD? Man what a steal, like literally.
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In all seriousness guys, there was a chat
room leading thousands of their members to
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buy this dip at $6 on VIVE. The guy sold most
at 6.23s and stopped out the rest after this
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super fast rug pull. You think thousands of
his followers with a 2 second delay got out
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at 5.90s?
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Now if youâre tired of following chat room
alerts and not learning anything with no direction.
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Stay till the end of this video. I have a
small special announcement that might interest
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you.
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So thats the power of using Benzinga to do
your search early before anyone else. So while
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people are just looking at their scanner and
drinking the VIVE pr koolaid and chasing it
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on this run up to $6. I already knew whats
likely to happen.
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Thanks for the alerts I had on this ticker
from Benzinga, I knew about the SEC Form 3
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and 4 that were filed a few days before. In
the filing you can see that Goldman Sachs
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started acquiring some common shares just
a few days after the stock had finish the
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split on Sep 18.
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Coincidence? That an investment bank is buying
some of this low float trashy stock? I donât
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think so. And itâd be foolish to be thinking
that Goldman sachs is really going to invest
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long term in a trashy stock like VIVE. Theyâre
an investment bank âhelping these companiesâ
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raise more capital. And theyâre gona sell
those beneficial common shares themselves
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to make money with this pump.
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And of course, I did more SEC filings research
on VIVE because that's part of my process
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nad I had the time to do so because I found
the stock early. I know that they have an
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S1 filed in early September with no effect.
That means theyâre going to do an offering
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in the future. They can't do it yet because
they don't have the notice of effect. But
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the key is knowing that this company, is sh*t,
and it needs to raise money. If you want to
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learn more about reading penny stock SEC filings,
make sure to check out these videos after.
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All this research and digging in to the SEC
filings is telling me before hand, that this
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company VIVE. is likely to release a PR soon
to prop the share prices up. And itâ would
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be easy for them to do so because after the
1 for 100 reverse split, the float is only
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400K. That makes VIVE a microfloat. And I
want to long the squeeze up on the front side
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early premarket. And get out before Goldman
sachs or any other possible dilution show
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up at the party.
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So early on Oct 1, the stock gapped up overnight
due to the PR about goldman sachs benefitial
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âinvestmentâ, and the company released
news that they finished an ATM offering for
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6.7 million dollars. While the entire internet
is going gaga over this. Oh Goldman sachs
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in it, I should invest too.
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The people whoâve done their research early
know that this company is in the hole for
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$175M of debt. And they burn through $8M every
3 months. That new 6.7M they raised in the
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PR title. Wont even last them another quarter.
Remember they already filed an S1 to raise
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even more money in the future. So this downtrend
on the daily chart due to dilution, isnât
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over. The bag holder story remains the same.
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So now that weâve gone over why reverse
spits matter, how to find them early, lets
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talk about how to trade and profit from these
reverse split stocks.
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First one is, And like I said many times before,
theres money to be made waking up early and
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being prepared early. Right when i get the
Benzinga PR alert at 7 or 8am market time.
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I know exactly how to execute, and what my
support and resistance levels are on these
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stocks.
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Longing the dip on these premarket low float
movers is a very reliable strategy. Remember
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when you already have above average volume
trading premarket. These stocks will move.
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And If you long premarket you can either get
out of all your position near highs, or hold
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on to a quarter of your postiion and sell
into the market open spike.
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Not every low floats will spike at the open,
weâve seen many examples in the past that
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these reverse splits just get dumped right
at the open such as SINT, and SPI in a sellers
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market. But stocks like FRAN and BPTH squeezed
a lot higher before even dipping down in a
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buyerâs cycle. All the major pull backs
are bought up, and the stock even provide
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long traders lots of opportunities to get
in for multiple days before the party ultimately
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collapse a few days later.
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Just because the penny stocks a reverse split
doesnât mean itâll go straight to the
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moon and make it rain lamborghinis. So itâs
up for you to manage your position and risks
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according to current market sentiment. If
you want to learn more about how to adapt
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your trading in various kinds of penny stock
market cycle make sure to check out this video.
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So as youâve seen earlier on my Benzinga
reverse split screener, there are a few more
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recent reverse split, or soon to split penny
stocks that Iâm tracking. And they are ONVO,
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FVE, NNVC, TTPH, IFMK and AEMD. Iâm giving
you the tickers now. Itâs up to you to do
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your own due delligience. Such as researching
their filings, subscribing on Benzinga for
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future PR alerts just like the exact preparation
process Iâve shown you before.
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And no, donât be that person who go ahead
and just blindly buy everything I just mentioned.
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Im not licensed, Iâm not a guru, Im not
a financial advisor, I dont even have a lambo
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so clearly I have no clue what im talking
about.
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And yes, i get it, Benzinga pro is expensive,
its a bit more than $115 a month on an annual
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plan. But this is a business expense. An expense
that can make you more than what you pay for
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it per month. Benzinga has so many other great
features such as as Squawk live news audio
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alerts, calendars, news and research.
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In trading, knowing the news a second before
everyone else will help tremendously. Thats
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how I learned about the spike on OBLN and
then halt on PDSB early on thursday, before
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the sheep came in. You can try out Benzinga
pro full feature for free for 14 days using
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the link below. Youâre going to love it.
Its an amazing tool i personally use every
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hope to see you there.
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