Key insights
- The author discusses potential investments in shell companies, one possibly pivoting and another consolidating. High volume and price correlations are noted. A small sell-off in the consolidating stock raises questions about balance sheet cleanup. The author seeks advice on the risk/reward of investing in these volatile, low-liquidity assets, particularly regarding potential trading halts and post-halt outcomes. Given the speculative nature and lack of fundamental information, this carries a negative influence.
I was researching some unusually high volume stocks and found a shell company that's had 10x volume for 2+ days. I looked into the CEO (they dont have one) the director though, he owns a financial company that does shell companies and this is like his 7th one or something. He runs another shell at the same time that has price movements at the same time as the other company, across years.
The consolidated stock thats probably going to be sold went down today -13% or only ~15,000$ worth of stock sold, ai says it could be trying to clear up balance sheets.
If a company if going to pivot and go tier 2 and gets halted. Whats my odds of walking away with positive money afterwards? Would I be better off buying the unconsolidated stock? Or nothing, or both?