u/NoCommunity4637

We all know that there is quite a bit of overlap between the two franchises, for a number of reasons. But seeing how we have no hope (at the moment) of the third instalment, you absolutely should play RE Requiem.

I won't list all the similarities, as to not spoil the game for those who have not yet played, but this is the first game in the RE franchise that hit all the notes for me, a player that considers EW games to be the pinnacle of survival horror. So many times I've gone through a part of the game and said to myself : "Wait, I already did this before...in Evil Within!" The only thing missing for me was the BAE Nurse.

With the strait closed for the n-th time and the recent attacks on the gulf states, investors might gaze back at our long forgotten darling. If you held it all this time, adjust your "open till expired" positions so you don't sell it for too cheap.

Position: 2k shares at 5.8 average, set the sale at 10.

Original post is here.

Below you will find my original reviews of the bot darlings (italics). My comments will be under the original posts.

Original:

SRXH : A quick glance through the filings shows that there are hundreds of millions of potential shares tied to mergers, warrants and conversions. They have an active ATM facility, and an estimated 550-600% potential incoming dilution. There is a prospectus that allows issuance of 400+ million shares related to the upcoming EMJ Crypto merger. This is on top of the existing 2000%+ dilution the stock has undergone prior to the merger news. They recently announced that 75% of proceeds from the profits from their indirect investment into SpaceX will be given to the shareholders as dividend. This announcement conveniently left out the amount that was invested, the date at which they intend to realise profits and what the share count will be like when that takes place. 4% short interest, 0.25 days to cover and a massive, enormous count of 10, 000, 000 shares available to short with a measly 2.2% cost to borrow make the short squeeze nearly impossible.

My verdict: This is a pivot into a new direction to gather retail hype, then dilution into strength followed by a reverse split. Someone will be left holding the bags. Don't let that someone be you.

Advised action: Scalping from 11-15 cent range (buy at 11, sell at 15) but keep the trades short. Risk averse traders advised to stay away.

1 month summary: Everything I said would happen, happened. This is my best prediction yet. If you bought in at 11-15 and sold at 40 cents as suggested, you made out nicely.

After a full month of daily 10-15 posts about SRXH, a cult like following of some EJ as their lord and savior, the stock crashed to 0.09, the trading was halted and an enormous 1:60 reverse split was announced. The cultists say its a good thing. Trust in EJ. Trust the plan.

Original:

GPUS*: 893% dilution in just 2 years. Potential supply of 3.4 Billion (with a B ) shares. There is an announced buyback that is used as a promotional tool. Only 5 million dollars at a tender offer of $0.21 per share (with current share price hovering around 14 cents). This is a lure, danging in the faces of retail, while the dilution is the hook, line and sinker. Current short interest is a low 10% with less than a day to cover. With 5 900 000 shares left to borrow and 1.2% cost to borrow, this will not squeeze.*

My verdict: An attempt to generate hype with the retail with this potential buyback will then be followed by dilution into strength and then a reverse split. Only way to make money on it is to have the shares at 10 cents and off-load them to some poor reddit sucker at a profit.

Advised action unless you have an open position: Stay away.

1 month summary: Company announced the 5 million buyback (did not do), canceled an ATM and announced a 1.2 billion dollar contract with the potential to extend to 2 billion. Then, they promptly announced a 300 million dollar ATM offering, 6 times the original amount and almost twice the market cap of the company. The stock cratered, after reaching the highs of 0.5. If you listened to me and stayed away, the rug pull did not affect you.

Can you make money off this scam company? Yes, buy in low tens, sell to your fellow investors during retail hype.

Original:

ALP: On paper this is the perfect setup. An upcoming acquisition of a profitable business (GAMEE), a recently signed contract worth 34 million dollars, with a 7.5 million upfront payment, zero debt. Dream come true scenario for a penny stock investor, right? Yet the stock was only able to move from 21 cents to 47 cents before the relentless sale pressure brought it down to low 30s. This made no sense to me at the moment, until I found out that they have a massive ATM and were possibly selling into the retail hype. Disregard posts claiming this is short pressure, as fintel posted short interest at a measly 4.5% with only 0.07 days to cover. The cost to borrow is currently at 62%, which makes it an expensive stock to short. It also has between 100 000 to 800 000 shares to borrow, which is staying consistent. Short squeeze is possible due to high cost to borrow, but is unlikely due to an active ATM.

My verdict: This stock MAY go far, but beware of misleading bot promotion. They bought GPU from Nvidia, which makes them customers, not partners. Their catalysts are legit and their business model is sound, as are their financials, but their ATM is something to keep an eye out for. They will most likely attempt a large dilution to finance the next gpu cluster purchase.

Advised action: Open a position with money you're not afraid to lose, get in and out with profits but don't stick around. They will dilute (unless they already diluted during the spike).

Disclosure: I own 13500 shares of this stock with 34 cent average.

Updated disclosure: I sold at a 3k profit.

1 month summary: Followed my own advice, opened a position, sold at a 3k profit. ATM is killing the gains, stock is now down to mid 20s and occasionally rolls back down to 0.18. Reverse split is inevitable. Stay away until after the reverse split.

Original:

NXXT: The revenue grew by 29%, gross profit grew by by 230% with gross margin improving from 3% to 8%. These are great numbers, but do not tell the whole story behind the #1 bot darling on these subreddits. The fluff posts leave out that their cash on hand is only $200 000. For a business that is extremely operating-cash dependent (their business model requires them to buy the fuel, hire the drivers, pay the logistics operators then send the invoices and await their receivables), this is next to nothing, and it would require either immediate dilution or additional financing (debt). It has gotten so bad that the management itself has raised going concerns. Its also worth noting that they spend more servicing their debt than they make in profits, which results in operating cash burn, negative cash flow and practically a mandatory requirement of dilution/debt to continue its operations. Despite all this, the board of directors did not hesitate to reward themselves with RSU grants, totalling 1.2 million shares.

A positive worth noting is that institutional ownership has increased from low single digits to very low double digits (some report an increase from 4% to 10%), and that the majority of the stock (up to 50%) is held by the insiders.

Short interest is 9.64% with 4.1 days to cover, but there are currently zero reported shares left to borrow and the cost to borrow isn't negligible at 11%. Short squeeze is technically possible, will monitor the situation. Monday morning will tell us what we need to know. If the owners flood the market with shares to raise operating cash, the thesis becomes null and void.

Short interest is still at 9.5% with less than a day to cover (both being pretty bad for a short squeeze candidate), but the cost to borrow is now at 310% and the number of shares available to borrow is again 0. Given that more than 50% of the float is locked to the insiders that are not selling, this thing could squeeze.

My verdict: This is a company that priorities self-enrichment and aggressive growth over cleaning up its own finances. They have a legitimate going concern (this means they could potentially go out of business), very little operating cash and will have to either dilute or borrow more to fund operations. Shareholders will feel the pain, but there may be a short term window of opportunity as retail investors may be mislead into buying the stock due to the positives outlined earlier.

Advised action: Nothing at the moment, the time to buy was prior to earnings. The nearly 100% jump in share value was the window of opportunity. If you missed it, stay away as the sharp pullback is incoming.

I was correct on the violent pullback from the highs, but my advised action has changed since I opened a position. I now own 10480 shares of this stock in a gamble to see if it will squeeze.

They just did a private offering of 10,000,000 shares for $6,500,000 to a large private investor. The bad news is the price is way below the current market value (which means the deal must have been worked on prior to the pump) and it severely dropped the share price from its high of 1.12 to low 80s. The good news is this is a much smaller dilution than expected, and it all went to a single buyer.

1 month update: I am a greedy idiot and am left holding a massive bag. As predicted, the stock tanked on a massive offering. WIll it recover? Yes, with the oil instability it will have several other runs. Just to make it clear, it was shorted by the same company that purchased the shares, and they profited and dumped the stock (speculation on my part).

Original:

MVIS*: This stock used to be heralded as the leading candidate in bringing forth the technology of the future, with excellent price targets and an enormous implied upside. LIDAR tech is without a doubt a very important aspect of our incoming annihilation as a species, when AI in physical forms with those units installed will hunt the remnants of humans through the dilapidated streets of our collapsed cities. In the meantime, investors were promised a generous upside for a fairly small upfront investment. However, despite fluff posts on various forums, the stock has been in a steady free fall. Why? Because of dilution, of course. Why do they dilute? because they have a very high cash burn (current guidance was updated, from 70 million a year to roughly 60 million).*

Their current cash/cash equivalents are in the ballpark of 45 million and a sub 1 million revenue. With a projected cash burn of 60 million a year, dilution isn't a matter of if, but rather a matter of when. With a remaining ATM of 42 million, they can raise funds on a moments notice and will most likely do so when the investor optimism is at an all time high. Investors have several good reasons to be hopeful: Revenue went up 58.8%, Net loss shrunk by 12.11%, net profit margin improved by 44.6%. Their recent acquisitions of Luminar and Scantinel assets also gives hope for a substantially improved financials in the future. Their tech is sound, their acquisitions were useful both short and long term, and they are generating revenue as opposed to being a purely RnD company.

Short thesis: 20% SI, 4.2 days to cover, a significant 14% CTB with roughly 500,000 to a million available shares make a squeeze possible, but once again, an active ATM negates that.

My verdict: Very interesting, future proof tech, but shareholders will be diluted heavily in the incoming months and I wouldn't want to be there for it. Its watch list worthy, but I wouldn't open a position quite yet.

Advised action: Sell during the highs brought forth by the improved quarterly report if you have a position, buy back in after the next round of dilution. Analysts predict several more years of net losses followed by dilution, but if the stock survives, it will be a game changer for many. Its something you want to be in, but get in at the right time.

1 month update: As predicted, stock is tanking and lost 56% of its value (dilution + loses) in the last month.

Original:

MVST*: I have been watching this stock for a long time, since it traded in the 15 dollar range. It survived the 2024 and fared quite well, all things considered. They have their manufacturing up and running and they actually generate meaningful revenue from industry customers. No Tesla, Lucid or Rivian but there are some big names on the confirmed and continuous customer list, and some wishful thinking posts that do conspiracy theory level digging are tying MVST to Oshkosh (that builds military vehicles and as such, is tied to an infinite money glitch aka DoD). If this collaboration goes through, it will send the valuation through the roof, as it will confirm that MVST produces top notch equipment that passes the stringent industrial demands of military contractors. However, there is nothing concrete about that, and unsubstantiated rumours make for heavy bags. One thing however is not a rumour: their management stated that there will be a need for additional financing for the Clarksville construction. Despite having 174 ish million in cash and cash equivalents, and declining liabilities, they will need to dilute to finance the new construction. That being said, this is dilution in the name of expansion as opposed to dilution to stay operational, like the cases of other stocks on our list, which will have a relatively small, albeit negative, effect on the share price.*

My verdict: This is a solid battery player that is suffering from geopolitical issues and in the right circumstances will flourish. Remove the fear of tariffs, bring back EV subsidies, allow them to trade freely with China and the stock will at least 5X from its current price. All of this may become possible with the next election in US, which will most likely get a democratic nominee elected. Until then, the market is rightfully concerned with the upcoming dilution, declining revenue (-48% YoY), declining volume and the adjusted EBITDA turning negative, resulting in the fall of the share price.

Advised action: Watch for geopolitical factors to change, be ready to enter when the circumstances are more beneficial to the company. If Oshkosh is confirmed as a client, I intend to open a sizeable position.

1 month update: Stock down 26%, Oshkosh not confirmed as a client, avoid the stock.

Original:

GDC: This stock is a prime example of "If something seems too good to be true, it probably is". Price per share at the moment is at 0.12, and there is supposedly (Trust me bro) a proposal by an activist group that already owns 9.2% of the shares to take it private, at an INSANE valuation of 10.75 a share.

What a lot of bots/pumpers like to do is tell you that the "Market is missing/mispriced/sleeping on" something so obvious as an enormous disconnect in price between the current share price and the proposed offer. That is simply not true. Market doesn't sleep on anything, market assigns value based on risk. The share price isn't "popping and rocket emoji rocket emoji lambo apes apes" because there is legitimate doubt that the proposal is real, that there is actual financial backing behind it and that this isn't just a promotional stunt to have enough people "Throw a grand at it, see what happens". If you look at the recent history of share offerings, you will see that the company raised 2.8 million in October last year (shares sold at 2.1 per share), 1 million in march (shares sold at 0.9 per share) and in May there were private placement of shares + pre-funded warrants. This is a company that is frequently diluting a micro-cap stock that is running out of steam.

But what about their bitcoin??!! They have 7500 bitcoin and that's why the offer is so high! You're just a fud spreading shortie!

I didn't know what to make of the bitcoin either. On paper, if you have that much bitcoin, the buyout price makes perfect sense. But then I dug deeper, and it turns out that the bitcoin was obtained through a share exchange/acquisition of Pallas Capital (where, incidentally, GDC also heavily diluted). What does that mean? It means that there may be additional claimants to that BTC treasury, drastically reducing the per-share claim of GDC itself. And since we do not know the exact number of shares of either company, and won't know until the next filing, the per-share claim may be minuscule.

Can it squeeze? Very unlikely. The short interest is practically non-existent at 0.23% , days to cover are rounded to zero, and despite a sizable cost to borrow at 40%, there are 1,300,000 shares available to short.

My verdict: I believe this to be a promotional stunt, to have one final go at milking the cow (retail investors) before the company gets delisted/goes bankrupt.

Advised action: Stay away or, if you feel like gambling on something incredibly unlikely to pay out, throw some money at it. I wouldn't, but I like my risk calculated.

1 Month update: Another 100% prediction on my part. Stock is now trading for 1 cent, down 90% from the time I made this post. I hope you listened and stayed away.

Original:

LFVN : A marketing company, that sells snake oil to the gullible and wellness products to the rich. In short, its a trash company (Before you begin, I am a lifelong athlete, and yes I did use some of the products before I became aware of their, at best, exaggerated effects, and of their numerous side effects). Their business model is despicable, but it was profitable for a while. Alas, as it always happens with companies of this type, the hype wears off, enough people find out your products are no better than placebo and the revenue tanks. This is what happened to LVFN, and the stock price, as its trading near an all time low. However, we are not in the business to judge, we are in the business to make money. So how can we make money off of this stock?

The best bet is the short squeeze. This stock is a prime example of "I can't believe its not butter it didn't squeeze yet". All the metrics are far better than needed : 43% short interest, a 49.5 days to cover (absolutely insane, but mostly due to the very low trading volume), measly 2000 shares left to borrow (and the number is consistently sub 25 000), and cost to borrow at a high 70%. By every metric, this thing should have squeezed already. And yet it didn't, and the culprit is the volume. To put it plain: No one cares about the stock, at least not enough to actively trade it.

My verdict : This is a very real short squeeze opportunity, but the squeeze was possible months ago and still has not materialized.

Advised action: Watch it like a hawk daily, this thing could violently squeeze and you want to be there for it. Do not open a position until volume improves.

1 month update: The squeeze was nowhere near as violent as I thought it would be, a mere 100% increase which the stock promptly lost and is now back to 6 dollar range.

I still did not do DVLT, so here it is:

DVLT:

Where do I begin?

Lets start with the share count. According to the SEC filings, shares have increased on average by a factor of 10 last year. Yet that doesn't seem to be enough, as the company has an approved 1 Billion (with a B) shelf offering, which means it can issue additional shares on a moments notice. If you bought in early, you were heavily diluted. If you buy in now, you will be heavily diluted.

Remember your intro to accounting? The most important metric of a healthy business is operating cash flow. DVLT has 3.4 million coming in, vs 31 million (operating expenses) coming out. They have established a projected guidance of 200 million dollar revenue, vs only 3.4 million revenue so far. Ambitious is not the word I would use here. There must be a better word...lunacy maybe? Delusion? you pick.

But it can't be all bad! Look at the bots pumping the stock, they claim 800 million in signed contracts, that's huge! Yes, it is. But even the company itself only projects 90 million of it to materialize, meaning the execution risks are massive.

Markets are not stupid (unlike retail investors). The stock price is indicative of these factors, showing a steady decline and a current share price of only 33 cents, down from $1.40 it was at the beginning of 2026 when the hype train was rolling. This shows that the market doubts the company's claims, their incredibly optimistic expectations and their ability to execute. Frankly, so do I.

Verdict: Keep an eye out but don't invest. Possibly a good scalping stock, but only if a catalyst is present. Good chance it will get delisted unless a reverse split happens soon.

Its cute how the GPUS bots try to mask their promotional posts by phrasing it as questions. More and more of these are popping up, so I decided to make a little summary table for those that may be new.

Lets review the chain of events:

1. Paid bots and bag holders start pushing GPUS after the latest round of dilution takes it from 0.6 to 0.1
2. No one bites. Paid bots start to advertise a 5 million dollar buyback. They make what feels like hundreds of posts on the subject. For the record, the buyback did not happen.
3. No one bites again. Stock goes up to 0.2 then back to 0.12. Many people, myself included, point out that with an active ATM, there is no opportunity for shareholder value to build.
4. They cancel the ATM. Read that again. They cancel the ATM. We are in the clear, retail sheep investors, buy our stock!
5. They release the news of the potential 1.2-2 billion contract. This is huge. Unheard of for a penny stock. No ATM, share buyback AND a huge contract? Shut up and take my money!
6. Stock rises to 0.5 from 0.12. Retail confidence builds. People start posting silly questions like "when moon" and "$1 soon?"
7. Gotcha! Says the management and initiates a massive ATM offering. The one they canceled, remember that one? it was 50 million. The new one is 300 million. Stock drops like a rock.

First time, you may ask? No, third in just my personal knowledge window. This is their modus operandi, this is how they make money.

Can you make money off of this stock? Yes. Buy in in low tens, sell during retail hype. Fair warning though, after 3 rug pulls, even the most redditor of redditors are starting to learn their lesson.

Hello everyone.

I have recently written a detailed post about NXXT being, in general, a poor investment choice. However, I was later influenced by their incredibly high borrow rate and locked in insider float to benefit from a mild squeeze. The squeeze was on a timer: with a company like NXXT, you can't buy and HODL or whatever other nonsense financially illiterate and the bots would suggest.

I made 3 trades in total for this stock, buying lower and selling at a 20% profit for the first 2, returning me $3800 while the third one made me a current NXXT bagholder. I am still in the green and could close my position at a loss right now, with the other 2 trades covering for the said loss, but I think I will hold on to my shares for a little longer.

So what happened? I knew exactly what the risk was, I knew what kind of company I was dealing with. What got me was greed. I set an unrealistic exit price for the last trade. If I had set the exit at 1.1 instead of 1.5 I would have made 8k in total.

How did NXXT screw me (and others that bought above 0.8) up? They did a private offer sale for a 6.4 million for 10,000,000 shares. Considering the high cost to borrow and the share price hovering around 1 dollar a share, this raises a lot of serious questions. Why so much cheaper? Because the private buyer demanded a discount in order to provide immediate liquidity (remember how I said there was only 200 000 in cash available for NXXT?). The buyer then started dumping shares (despite there usually being a lockup agreement, which could technically still be in play but the buyer is hedging their purchase by shorting the stock they bought, locking in profits) and spiked the available shares to borrow.

The new floor for the stock is 0.64, thanks to the desperate management and the savvy decision making of the private investor. The investor potentially made 3.6 million in a matter of days. Not too shabby, and all at our expense.

Now, the deal was negotiated well in advance. Could the bots be paid by the investor, and was the positive news timed specifically to short the stock? I will let you answer those questions on your own.

I hope you enjoy reading my musings and hopefully this will help you make quality decisions when it comes to spammers in this sub. And always remember: the last thing the penny companies care about is shareholder value. You're just sponsors to them, get in, make profit then get out.

Yes, that NXXT, the bot darling that was spammed on every subreddit with fluff pieces. Only now there are technical signs of a potential mild squeeze. You may remember my scathing review of it in my previous post.

In the spirit of the bots, I should be saying 100x from here, everyone FOMO now, buy buy buy!!! but instead I will just tell you what I did and you do what you think is right.

I saw the short interest at 9.5% and barely any time to cover (0.05 days) and said "pft, another trash stock that isn't going anywhere". But then I looked at cost to borrow and it went to 400%. There were 100 000 shares made available, which calmed the pressure down, but as of now, there are again zero shares to borrow and the cost to borrow is at 310%.

I bought in with 10480 shares. Will play the timing tomorrow, my price target is 1.5 per share, at which point I will sell half of my position and keep the free shares running. Of course, there is a high probability that instead the stock will go down to 0.4 and I will become a bagholder, but I feel like taking a gamble.

Best of luck to everyone and don't spend money you're not prepared to lose.

Yes, that NXXT, the bot darling that was spammed on every subreddit with fluff pieces. Only now there are technical signs of a potential mild squeeze.

In the spirit of the bots, I should be saying 100x from here, everyone FOMO now, buy buy buy!!! but instead I will just tell you what I did and you do what you think is right.

I saw the short interest at 9.5% and barely any time to cover (0.05 days) and said "pft, another trash stock that isn't going anywhere". But then I looked at cost to borrow and it went to 400%. There were 100 000 shares made available, which calmed the pressure down, but as of now, there are again zero shares to borrow and thecost to borrow is at 310%.

I bought in with 10480 shares. Will play the timing tomorrow, my price target is 1.5 per share, at which point I will sell half of my position and keep the free shares running. Of course, there is a high probability that instead the stock will go down to 0.4 and I will become a bagholder, but I feel like taking a gamble.

Best of luck to everyone and don't spend money you're not prepared to lose.

Full disclosure: I am a retail investor using a platform that does not allow shorting. All stocks mentioned are presented purely from a research perspective, and I do not hold short positions or put options in any of them. I may however hold a position in a stock otherwise (call or long), which I will disclose when the stock is mentioned.

SRXH : A quick glance through the filings shows that there are hundreds of millions of potential shares tied to mergers, warrants and conversions. They have an active ATM facility, and an estimated 550-600% potential incoming dilution. There is a prospectus that allows issuance of 400+ million shares related to the upcoming EMJ Crypto merger. This is on top of the existing 2000%+ dilution the stock has undergone prior to the merger news. They recently announced that 75% of proceeds from the profits from their indirect investment into SpaceX will be given to the shareholders as dividend. This announcement conveniently left out the amount that was invested, the date at which they intend to realise profits and what the share count will be like when that takes place. 4% short interest, 0.25 days to cover and a massive, enormous count of 10, 000, 000 shares available to short with a measly 2.2% cost to borrow make the short squeeze nearly impossible.

My verdict: This is a pivot into a new direction to gather retail hype, then dilution into strength followed by a reverse split. Someone will be left holding the bags. Don't let that someone be you.

Advised action: Scalping from 11-15 cent range (buy at 11, sell at 15) but keep the trades short. Risk averse traders advised to stay away.

GPUS: 893% dilution in just 2 years. Potential supply of 3.4 Billion (with a B ) shares. There is an announced buyback that is used as a promotional tool. Only 5 million dollars at a tender offer of $0.21 per share (with current share price hovering around 14 cents). This is a lure, danging in the faces of retail, while the dilution is the hook, line and sinker. Current short interest is a low 10% with less than a day to cover. With 5 900 000 shares left to borrow and 1.2% cost to borrow, this will not squeeze.

My verdict: An attempt to generate hype with the retail with this potential buyback will then be followed by dilution into strength and then a reverse split. Only way to make money on it is to have the shares at 10 cents and off-load them to some poor reddit sucker at a profit.

Advised action unless you have an open position: Stay away.

ALP: On paper this is the perfect setup. An upcoming acquisition of a profitable business (GAMEE), a recently signed contract worth 34 million dollars, with a 7.5 million upfront payment, zero debt. Dream come true scenario for a penny stock investor, right? Yet the stock was only able to move from 21 cents to 47 cents before the relentless sale pressure brought it down to low 30s. This made no sense to me at the moment, until I found out that they have a massive ATM and were possibly selling into the retail hype. Disregard posts claiming this is short pressure, as fintel posted short interest at a measly 4.5% with only 0.07 days to cover. The cost to borrow is currently at 62%, which makes it an expensive stock to short. It also has between 100 000 to 800 000 shares to borrow, which is staying consistent. Short squeeze is possible due to high cost to borrow, but is unlikely due to an active ATM.

My verdict: This stock MAY go far, but beware of misleading bot promotion. They bought GPU from Nvidia, which makes them customers, not partners. Their catalysts are legit and their business model is sound, as are their financials, but their ATM is something to keep an eye out for. They will most likely attempt a large dilution to finance the next gpu cluster purchase.

Advised action: Open a position with money you're not afraid to lose, get in and out with profits but don't stick around. They will dilute (unless they already diluted during the spike).

Disclosure: I own 13500 shares of this stock with 34 cent average.

NXXT: The revenue grew by 29%, gross profit grew by by 230% with gross margin improving from 3% to 8%. These are great numbers, but do not tell the whole story behind the #1 bot darling on these subreddits. The fluff posts leave out that their cash on hand is only $200 000. For a business that is extremely operating-cash dependent (their business model requires them to buy the fuel, hire the drivers, pay the logistics operators then send the invoices and await their receivables), this is next to nothing, and it would require either immediate dilution or additional financing (debt). It has gotten so bad that the management itself has raised going concerns. Its also worth noting that they spend more servicing their debt than they make in profits, which results in operating cash burn, negative cash flow and practically a mandatory requirement of dilution/debt to continue its operations. Despite all this, the board of directors did not hesitate to reward themselves with RSU grants, totalling 1.2 million shares.

A positive worth noting is that institutional ownership has increased from low single digits to very low double digits (some report an increase from 4% to 10%), and that the majority of the stock (up to 50%) is held by the insiders.

Short interest is 9.64% with 4.1 days to cover, but there are currently zero reported shares left to borrow and the cost to borrow isn't negligible at 11%. Short squeeze is technically possible, will monitor the situation. Monday morning will tell us what we need to know. If the owners flood the market with shares to raise operating cash, the thesis becomes null and void.

My verdict: This is a company that priorities self-enrichment and aggressive growth over cleaning up its own finances. They have a legitimate going concern (this means they could potentially go out of business), very little operating cash and will have to either dilute or borrow more to fund operations. Shareholders will feel the pain, but there may be a short term window of opportunity as retail investors may be mislead into buying the stock due to the positives outlined earlier.

Advised action: Nothing at the moment, the time to buy was prior to earnings. The nearly 100% jump in share value was the window of opportunity. If you missed it, stay away as the sharp pullback is incoming.

More to come once I have time to really type this up. Leave a ticker in the comments if you want me to look at it. I plan on looking at GDC, DVLT and whatever else may pop up.