Novice question...

[KevDog60]

Big gainer during U.S. Market hours, sharp sell-off right after close, any thoughts for a novice? Likely cause? Thank you

 

[timsk]

Big gainer during U.S. Market hours, sharp sell-off right after close, any thoughts for a novice? Likely cause? Thank you

It looks like a penny stock which are often targeted by 'pump 'n dump' traders. There's no obvious news (that I can see) to account for the rise or subsequent sell off, so my guess is that there was a lot of hype about it from buyers on social media which gained traction and, when the time was right, the instigators sold their holdings for a decent profit. All speculation on my part - I could be completely wrong!

 

[BigDeal]

When you see a big drop just after the close, there are a number of things to look for; company result which are much worse than expected; a big dividend payout, or in this instance it's becasue the company are going to issue more shares to raise $7 million which results in a huge dilution of existing holdings.

 

[KevDog60]

It looks like a penny stock which are often targeted by 'pump 'n dump' traders. There's no obvious news (that I can see) to account for the rise or subsequent sell off, so my guess is that there was a lot of hype about it from buyers on social media which gained traction and, when the time was right, the instigators sold their holdings for a decent profit. All speculation on my part - I could be completely wrong!

Thank you!

 

[KevDog60]

When you see a big drop just after the close, there are a number of things to look for; company result which are much worse than expected; a big dividend payout, or in this instance it's becasue the company are going to issue more shares to raise $7 million which results in a huge dilution of existing holdings.

Excellent, thank you!