The reverse split secondary offering cycle did an episode on it on YouTube just a couple days ago and a couple more examples. We are in a little um, just uh I don't know what you'd even call it. um a period where we're seeing them back to back to back to back. So the latest one? um, yesterday Iccm this stock makes a remarkable move.

Now the Iccm had news that came out. Um, it came out at 4 P.M On what was the day, it was on the 19th. So let me check my news on this. So um, this was on the 19th.

Let's see right here. So this is a biotech stock. Here's our headline: Uh, you know they announced a safe and effective um that they're this. Pro Sense product is safe and effective in treating kidney tumors with 89.5 percent.

uh, reoccurrence free rate based on interim study results. That sounds great I Mean that is great and you know what? This is Awesome! These companies are coming up with some amazing treatments that can help people live longer. This is really good, but you know this is the thing that we see that we have to kind of take it with a grain of salt because the stock squeezes up and boy it's squeezed quick. It went from a low of 95 cents up to over 11 dollars a share.

That is crazy. I Mean I Know, like this chart doesn't even make it look as exciting as it was, but this thing just went straight up. That's a huge move. Okay so you know.

then Day two yesterday. Uh, it sold off hard pre-market which kind of surprised me. uh it comes back up and at the open it did rally off the low of 220 all the way up to 450. But then during the day notice some of these really big candle wicks and there's no chart today because right now the stock is halted because we've got news out.

All right. So the news out this morning. uh let's see this is on that was on Iccm. So the news out this morning on this.

Um well what was the offering price? I'm trying to remember. um proposed offering did they give? Have they given the price yet? it's halted pending news right now? I'm not sure if we have a price on no price yet. All right. So we've got halted pending news and if you notice yesterday this price action back this up a little bit.

Um, what we were seeing having a hard time loading my see I think it's because it's it's halted that it's not loading? Yeah, but that's not funny by one minute. All right. Well, we could still look at the five minute chart. I'll switch this back to one minute.

Um, so the five minute here from yesterday You kept seeing these, um, these upper candle wicks, right? There were a couple of really nasty upper candle wicks where it popped up and then flushed out, popped up, flush down, popped up, flushed down again again. and then finally. you know, selling off. uh, into the close.

So it makes you wonder whether or not uh, they were doing a offering price to the market and those big flush candles. were them selling shares? because when I was looking at it yesterday and and I could be wrong. Uh, it could be that there were insiders or some institutions that were holding that were selling shares. That's possible too.

But there was a lot of selling. and you we were seeing these big bursts of orders. and the way these orders work, you have to remember that the market is very, um, it's very segregated into pools. you have, uh, Citadel right? you have Robin Hood TD Ameritrade all of these traders that are executing their orders against this pool of liquidity that's within Citadel and they're uh, you know, it's a duopoly.

it's them. and then there's virtue and well, I guess there's a there's a couple other big payment for order flow companies, but uh, their liquidity is sort of separate. So like if if for instance, you're on TD Ameritrade and you know you want to sell 50 000 shares unless Citadel reroutes your order to the lip. Market I'm trading on the lip market, right? because I'm using um, the light speed.

so this is sending my orders directly to NASDAQ Bats edgex. You know a couple different routes. so I I actually don't have access to your liquidity. You may provide liquidity, but I don't have access to it.

So the way this ties back to these direct offerings or the offerings that are priced on the market is that when you see these firms dump shares, they're dumping them within one of the pools they have access to. So they may I mean uh I don't know. maybe they can access some of the pools that have more liquidity. but if they're selling it direct access on the open market, you're going to see these flushes where these Algos basically it sweeps the book is you get the uh the marketable order and the reason that happens is because these high frequency trading algorithms they subscribe to Market data.

So they see a 50 000 share block order coming in and they pull their orders that are on the bid. so they the first order starts to fill and then because of Reg Nms and the Nbbo, it then reroutes the rest of it, the rest of it, the rest of it. and so the orders that were on the bid start to get pulled and this has been going on for a long time. So all of a sudden you get this this sweep effect where a big order sweeps the book and all of a sudden the the bid drops 15 cents and then it can come right back up.

And we were seeing a lot of that yesterday on Iccm and I was just like I don't I don't feel comfortable trading this because it's just it's these. It's hard to manage risk when kind of at any moment you could have that happen. So anyway, so that was on Iccm. so not a reverse split.

but this is an example of a stock that had news and then turns around the next day basically two days later. secondary offering Atnf. Here's an example of a reverse split. Stock does the reverse split and then you know, so they do the reverse split.

they regain compliance for their NASDAQ listing. Squeezes up, makes a big move, and then we've got the news of let's see. this one's Atnf. Uh, six million dollar offering? All right.

So the Six Million Dollar offering. Let's see this was priced at three dollars and fifty cents a share. Um. shares brought 55 shortly before 2 30.

let's see and let me just check here. What time? What time was this? um announced? Does anyone did anyone see the headline uh or the the time of when that offering was. When that news hit, we had the stock split 20 to 1. surprised I'm not seeing it on the 8K right up here.

Maybe someone in the chat room it was like 2 P.m right? Okay, so let's look at the chart. Yeah, right there. So yeah there there it is says squeezes up and then boom right there and that's the sell-off Come on. I mean the it's just.

we keep seeing this. We're seeing it again again and again. and it's a it's it's the small cap cycle. We've seen this for a long time, but um, we just keep seeing it.

And there was one other. Oh there was Cosm. Uh, when I did my my video the other day uh I was talking about Cosm and then um, we got news that Cosm priced an offering. What was it priced at I can't remember.

Uh, 32.5 million dollar direct offering priced at the market 11.50 a share. which actually that's right. I Thought that was a pretty good price, but uh. but in any case, the stock pulled back.

So this is just again urging you guys to be cautious and you can always check to see whether or not a company has a shelf registration. So let's let's look. for instance, we have Htgm on the scanners today. Okay, so Htgm, Let's start to look forward a little bit.

Do they have a shelf registration? They do. It's from April All right. So they have a shelf registration right here in April Let's see how much it's for. Um, so Nine million? 700? approximate? Uh, thousand shares.

So now hold on. I'm just trying to understand this one. Um, this registration statement. Let me look at the chart here for a second so you can see it's got a fairly long history of selling off, right? So it's been selling off.

It's been selling off and down here. You've got the secondary offering. sorry Hcgm. Um, yep.

Similarly, long history of selling off. Uh, reverse split Back there was a few years ago up. This is what shelf registration usually looks like. All right.

200 million dollars. This looks like this is a registration of shares that they may have already sold. So uh, in any case, you know this was probably the vote on a reverse split. See, let's just check.

Yeah, reverse split vote. So you know again. Now we're wondering here whether or not in the next couple days could we see? Could we see the secondary offering? Now The thing is usually part of this small cap cycle is that we'll see. Um, you usually will see some good news like we did on Iccm Iccm.

That one makes a little bit more sense to me because they have good news out which now warrants some new investors coming being like okay, I'll step up and invest in this company, right? So maybe they could they could raise more money because now they've got something that they can show, right and that That makes sense when they do the secondary offering. But they don't have any good news. All they did was the reverse split and then the stock kind of surged up. That's what you're like.

the reverse split and then the stock just kind of popping up created the liquidity for that offering. Um, I don't know. it's just. we just see it a lot.

and lately I Don't know if it's because it's the end of the year, but we've seen in the last few weeks we've seen like 10 of these. so we're definitely in a little bit of a cycle. And it's not to say that there's not some opportunity to trade them long or short. Some of them have been very volatile, so there could be opportunity there, but you do not want to be a bag holder.

so make sure you are managing your risk. Thinking about your downside before you're taking a trade because hello, Trading is risky, so take it slow. All right. That's just adding to the topic of what we talked about yesterday on reverse splits and secondary offerings.