Red Flags means stay away
1. If any of the comments have AMC, moon, squeeze,meme, or misspelled words then stay far away or short it.
2. When the stock has over 300 million shares available.
3. Prospectus filings that are open or they have filed 2 or more in the past year.
4. Insiders haven’t bought any shares in the past year.
5. Company has added more employee options(free shares).
6. The stock price is at its 52 week high.
7. It’s within 2-3 days of its ER.
8. The company beats ER but the stock goes down.
9. A reverse stock split has happened in the past year or is coming up.
10. It is named $Robinhood(HOOD.US$ or has any association with the company.
2. When the stock has over 300 million shares available.
3. Prospectus filings that are open or they have filed 2 or more in the past year.
4. Insiders haven’t bought any shares in the past year.
5. Company has added more employee options(free shares).
6. The stock price is at its 52 week high.
7. It’s within 2-3 days of its ER.
8. The company beats ER but the stock goes down.
9. A reverse stock split has happened in the past year or is coming up.
10. It is named $Robinhood(HOOD.US$ or has any association with the company.
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earning_s : A reverse stock split causes the company’s stock price to rise. Why is it a red flag?
Mcsnacks H Tupack OP earning_s : It’s an artificial rise. They remove stock shares that were sold to investors without compensation for them. Shares should only be removed by buybacks. The company buys the shares they sold to investors earlier which causes the stock to rise authentically. They instead are just throwing away shares that had/have value.
curtaincall : 90% agreed. No.1 means oppotunities too lol, beginners should avoid tho
Mcsnacks H Tupack OP curtaincall : 1 and 10 are meant for the way to draw in the reader with a funny joke or humorous closing to make it more memorable.
Chloechan01 : y