HNY 2017 with re-born ERJ, page-9

It's a tricky one, clearly very early to take a stab but some predictions:

1. Some holders will simply want to get out, having dodged a bullet. Expect some sellers to have itchy fingers and prepared to sell at a loss. Pre-open I can see some big sells placed at .005 and then we will see how many are prepared to sell at .004 or perhaps 0.003 just to jump the line.

2. Buyers will clearly stack .001 and then .002 but how many will be willing to jump at the stock for .003 or .004?

This is where the battle will begin - around .004 and the direction from there simply depends on the volume of buyers v sellers.

If ECM holds its stock tightly, the price could exceed .005 quite quickly but at the same time they might like to recoup their $5.8 mill by selling a chunk of stock around .005 also.

Lots depends on ECM and how much (if any) stock they plan to sell. With over 5 billion shares held they could sell off a couple of billion, skewer the share price then recapitalise. For this reason I see .005 as a strong possibility but also a huge risk of ECM dumping stock around that price.

Do ECM have any track record with this type of deal?