80-90% of spec market placements the past few months go under the placement price within two weeks. I know because I track them all.
The majority of sophs dump as soon the shares hit their accounts. It only takes 5% of the raise amount to get dumped for the price to tank.
Even when placements supposedly go mainly to instos the shares are still almost always distributed within weeks. The ALC raise was very widely available FYI.
It's very unusual for the share price of a company to be 28% above the placement price a few days before the shares come online. Hence why I have sold ALC and posted to let you all know about the likely drop.
ALC may be the exception and only retrace to 33-36 cents but I would be shocked if it didn't tank considerably once the shares are dumped.
25-32c is very possible downside in coming weeks considering how fundemantally overvalued ALC is (not to mention being technically extremely overbought on daily/weekly RSI).
More than 50% of SPPs go below the placement price during the eligibility period.
Still nobody dares justify the $400 million valuation here... I wonder why?!
ALC Price at posting:
41.0¢ Sentiment: None Disclosure: Not Held
