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ETRM shaking my head



January 10, 2017 – Comments (0) | RELATED TICKERS: ETRM

The pop in the stock caught my eye on the tape; I see they have new CFO and COB; were almost delisted in Nov; did 1 for 70 reverse split (yikes!) and now they filed an S1 to issue more stock which will dilute existing share holders. New stock issued is based on Jan 5th price of around $3.50.  I'm not sure how that works with their underwriters....(who get 20% of the stock, I think for their payment) if it will be priced near where stock is trading the day it comes out??? They don't have profits; never have, they have a fabulous product, it looks like; and just announced two hospitals are going to start using it, but will insurance cover the almost $8k cost? ( I think that is the cost to the patient) I also noticed that it looked like employees will not be diluted of stock shares due to them in their incentive plans ( We always need to keep our talent!) yet, shareholder will be diluted.  Someone please correct me or clue me in on this situation that has exploded from $1.88 on Jan 3 to $27.20 on Jan 10th  This is the same stock that adjusted for all of the reverse splits traded at an equivalent of $4,473 on July 13, 2012.

I hope if you are reading this, you caught a nice trade last few days, and were not short (farm losing event) but if you are thinking this is a good investment and their product has long term viability, please tell me..... Looks too fishy for me at this point.

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