The truth about $NTCL: It wasn't a company rug pull, it was a WhatsApp scam group. Here is the actual data on Monday's split.
Hey everyone, I've been seeing a ton of posts calling NetClass Technology ($NTCL) a scam and saying the company rugged us. I got caught in this too, but we need to look at the actual filings because the story is different. The company didn't pull the rug—a massive coordinated WhatsApp scam group (targeting specific language chat rooms) pumped this thing to the moon and then dumped millions of shares on regular retail traders at the top.
The company is actually scrambling right now to save its Nasdaq listing before a hard July 27 compliance deadline. Today they officially closed at $0.1022 and announced a mandatory 1-for-50 reverse split for Monday, July 6.
Here is the raw, no-bullshit data on what is actually happening on Monday and why the shorts might be in massive trouble.
The Real Data:
- The New Price: On Monday morning, the stock price automatically jumps from $0.1022 to $5.11.
- The Float Collapse: The total public shares are getting slashed by 98% (from 63 million down to just 1.2 million shares). The float is going to be microscopic and completely locked up.
- The 1000% CTB Rate: Because the split is cutting off the supply of shares, the Cost-to-Borrow (CTB) rate just spiked over 1000% today. It is costing short sellers a fortune just to hold their positions over the weekend.
The Good vs. The Bad for Monday
The Good (The Squeeze Setup):
Because the short borrow fee is over 1000% and 98% of the shares are vanishing, the shorts are walking into a massive trap on Monday morning. When the market opens with an incredibly tiny, illiquid float, any tiny bit of buying volume is going to cause the price to gap up vertically. This will force short-covering algorithms to panic-buy shares to close their positions, triggering a massive pre-market short squeeze.
The Bad (The Risk):
Penny stocks undergoing reverse splits are incredibly dangerous. If no buyers show up on Monday morning, trapped retail investors might just panic-sell at the $5.11 print to get their money out, which will bleed the stock back down.
How to Play This:
If you are holding a position from higher up (like a $0.18 average, which becomes a $9.00 target post-split), do not try to manually trade this during regular hours. These low-float spikes happen incredibly fast.
The play is to log into your broker early Monday morning, check that your shares updated, and set a Good 'Til Canceled (GTC) Limit Order at your exact breakeven price. Make sure you turn Pre-Market / Extended Hours trading ON. The algorithms usually trigger the squeeze between 4:00 AM and 7:00 AM EST before standard retail apps even open up.
Let's stop blaming the company for what the WhatsApp scammers did, look at the 1000% borrow rate, and see how this crazy float plays out on Monday.