This Stock Went Up 750% TODAY! transcript

What's up, everyone? All right, in today's episode, we're going to break down how a stock was able to go up over 750% this morning. An incredible move. What a way to start the new month. And this month should be pretty exciting. We've got the pattern day trader rule going away on June 4th. June 12th, we've got the SpaceX IPO. So, we've got a lot in store for us. Let's go ahead and jump on the screen share and start breaking it down.

TGHL is the stock today that made the big move. This is This is wild. So, the low at 8:00 a.m. was 32 cents and it went all the way up actually to a high of 306 at its peak. Unbelievable. This right now has 86 million shares of volume. It'll probably have over 200 million shares of volume by the end of the day. Right now, the float on it is 25 million shares, but it's important to note that this is a somewhat recent IPO.

So, the way I perform my due diligence is when a stock first hits my scanner, I see it on the scans just like this, just like any other of these stocks, and I notice the ticker, the price, the volume, the float, and the relative volume. The relative volume tells us how the volume today compares to the 50-day average of this stock. And so, this morning, if we scroll back here, TJ TGHL, um where is it? So, it hit the scanners first uh with breaking news.

Let's see, the news came out at about 8:00 a.m. And right down here, it hit and immediately was already with 10,000 times above average volume. So, within 5 minutes, the stock was up 328%. I mean, this thing was ripping. I typically am not that interested in lower-priced stocks. So, the initial move from 30 cents up to a dollar a share, dollar 50, not that interesting to me, but then it ends up basing out here at a dollar, squeezing through a dollar 50, and that's when we got that bigger move all the way up to $3.

So, let's break down this company a little bit more. The There's a couple things that I observed. Number one, 25 million share float is a little bit on the higher side. Now, it is a recent IPO, as we can see here on the daily chart. So, if we look at the daily chart, we sort of zoom in on this little bit, we can see the all-time high was back here at $4.25. The stock has not done any reverse splits. It basically IPO'd and then sold off.

They sold 25 million shares $4 a share, so they raised like a hundred million dollars. Good for them. Well, but then the stock went down to 20 cents a share. So, we're going to open the filings and look at some reasons why that might be the case, but clearly the volume has been pretty low and the stock has been selling. So, during this period of sell-off, we had, you know, the IPO day, another day with a little volume, another day back here in February, and then today is the highest volume day that the stock has ever had.

So, this IPO was back in August. So, nine months ago. Presumably, any shares that were held during a lockout period have since been unlocked and trade investors that had shares before the IPO would have been able to sell those shares. In fact, it's usually a 90-day or 180-day lockup period. So, August, so then September, October, November. So, let's see. So, that's um So, that's at October right there. Then, we come up forward about six months to uh let's see, February 28th, which would be about here.

So, we don't see like a surge of volume at any time to indicate that there were a lot of insiders that were selling, but uh in any case, we do know that that's always a risk with IPOs. Uh we've been talking about it with the SpaceX IPO as well, but uh we'll stay focused here on TGHL. I did another uh episode specifically on SpaceX if you guys uh haven't already checked it out. Okay, so the float is a little bit higher um and it's a Singapore company.

All right, so now it's technology, software, and IT services. And then we've got this headline that came out at 8:00 a.m. And so they made a filing with the SEC, so we're going to pull up that filing right here. Um All right, so summary term sheet. Okay, so this is um strictly confidential except of course it's been publicly filed. So it's not really that confidential anymore. Uh the date is May 28th and it's a term sheet entered into um by and between publicly listed company TGHL and the privately held company Anacomp America Incorporated.

Interestingly, uh interesting. So these parties have agreed to all the terms and what this is essentially doing is it is merging these two companies. It is a merger. It's a reverse merger. So this is the public company The Grow Hub Limited and this is the private company. The private company's going to merge into the public company and then they both become publicly traded. They'll be a wholly owned Delaware subsidiary.

So that'll make this the company appear to be a US company, although I don't know that it's exactly going to be a US company. And um we can see here uh the TGHL existing shares are 25 million, the merger shares are 142 million, so the total shares will be 168 million and this is the breakdown of the two companies. So the thing here is that typically mergers aren't typically the strongest catalyst. A reverse merger where a privately held company becomes public can be a bigger catalyst depending on who and what that privately held company does.

Now, the fact is it would be very difficult to perform the due diligence of understanding everything that N Cam America does within the 30 seconds it took for the stock to suddenly surge from 30 cents a share first up to you know, 70 cents a share then micro pull back and all the way to 120. So I think or $1.20. So I think it's safe to say 120 cents. I think it's safe to say that traders were not really trading the actual fundamental catalyst as much as they were trading just the belief that the news was good.

And that speaks to a frothy market. So traders are exuberant, they're excited. We've been seeing big moves. Something is moving and so they're jumping in it quickly without really doing their full research. Goes up to $1.40 and there may be some short sellers who are like, there's no way it's going to hold this level adding adding adding adding adding, but where's the stop? It pulls back and there you go. Short sellers are feeling good.

Drop backs in fact below a dollar a share. Then it suddenly curls back up and uh-oh, it rips through the high and this is where things kind of get out of control. Now, in this area here, um I was watching and I said, "Okay, I'm I'm going I think I'm going to take a break of uh $2 right here." But as I was watching it, it popped up to 206 and then it dropped heavily back down below two. There was a big seller. And I was like, "I don't know." Came back up to two and that seller was still there.

And then it popped for a moment to 212, then it kept dropping back below two. So it was kind of straddling the whole dollar of two here. You could see above and below where it was above and then below. And then it comes up here and I said, "Okay, this is usually where I'd be a buyer right here at about 207 to anticipate the break through 212. I had my order ready to go and I said I'm going to hold off on this cuz I'm just not sure this is going to work.

It's already up at that point. I mean, let's see. So at that moment, we'd already gone from 30 cents all the way up to 215. We were up a lot on the day. And I just wasn't sure it was going to work. There were a lot of big sellers that kept coming out. So, I said all right, I'm not going to take the trade, but I'm just going to pretend. So, I'm going to pretend I'm in at about 207. Let's see what this does. It goes up to 215, then drops back down to 207.

Goes back to 215, drops down, and I say, you know, see, if I was in this, I probably would sell it for the three or four cent winner because this is grinding here, and sometimes we get this action right before a dump. Well, sometimes we get this action right before the stock pulls away as well. I just didn't think it would pull away because of how extended it already was. And so then I said I all right, so I was pretend in here and then out here basically for a tiny profit.

Then it pulls away and I said, well, now see, you know, micro pullback, but can I get back in here after having just, you know, gotten out. Again, this wasn't a real trade. I just was sort of articulating what I was thinking cuz I was holding my hands and not feeling totally confident about it. It breaks 240 and goes all the way up to 260, 270, 280, 290, 3, 310. And I said, well, if you can hold over three, then maybe we have a move and maybe there'll be a a micro pullback there, but then a hard reversal back down.

And so then we came all the way back down here to $1.90. And now we're starting to kind of creep back up a little bit. Um but at this point, you've got this pretty dramatic rejection off the top. So, this high day candle uh also has the highest volume of the day. It has a topping tail and then a strong rejection back down. Remember those topping tails tell us that while buyers bought it up, the sellers were stronger in the end and pushed the price back down.

So, I did not end up taking any trades on TGHL in spite of the fact that it ended up going up over 750%. I held discipline today. After all, today is the first day of the new month. Last month was a great month. It ended up finishing really well with three or four great days last week. Um you know, but it's a new week, it's a new month, and I've got to start out slow by building a cushion. And when I first sat down this morning, I could tell there was dispersed attention.

We had a lot of different stocks moving, and it was hard to tell what was going to hold up. So, now let's talk about the trades that I did take today. So, I sat patiently, and I knew that last week one of our biggest moves was ASTC. Uh Astrotech company sort of piggybacking off the SpaceX IPO. I think they actually do some business with SpaceX. And so, you had this incredible move, which originally I underestimated, but it just kept going higher and higher and higher and higher and higher.

So, when MTech posted a headline right here of unveiling Venus Space expanding AI-powered edge video solutions to low earth orbit nano-satellites, I thought this was going to be a no-brainer. I really thought this thing was like going to explode. It's in the right sector, it's the right type of catalyst, and it has an AI component on, you know, the month of the SpaceX IPO. I really thought this was going to work. And so, as it popped up here, I jumped in at about $2.70.

Uh sorry, $1.70. So, I got in um right around here as it first popped up. It hit a high of two. It pulls back, it comes back up, I add to the position. It doesn't pull away. It dips back down, and I'm like, "Give this thing a chance." Because remember, ASTC took a little bit of time to get going. Once traders see this headline, I think it's going to move. And it went up to a high of 248, but it just was not able to pull away.

And the selling was strong on it. And so I was a bit discouraged, to be honest, that the the exact catalyst that I was looking for and hoping for didn't give us a big move. And I stepped up to the plate on this. I took a big position. I was looking for that awesome trade, and it just didn't happen. Now, it was a winner nonetheless. So, you can see here my Roth IRA account. I'm up 4,400 on the day, and I'm up 3,500 on Mitek.

All right, it is a winner. Now, at the peak here, I was up unrealized quite a lot more, and I didn't sell because I was hoping this thing was going to keep going. I was thinking we'd get a move to 3, 354, especially after just having this huge move on TGHL. However, is it perhaps because of TGHL that this didn't work as well? Traders still watching TGHL, and therefore missing the opportunity on Mitek. Today was a day of dispersed attention.

So, Mitek didn't get the attention it maybe would have if TGHL hadn't made this big move. Then we had HKIT. HKIT put in a huge move earlier, sells off, curls back up right here, and I took a trade on this looking for the break of VWAP. Now, the way I traded it is we got this big rally up, and I didn't want to chase it. It hit VWAP, it pulled back, and I tried to do a micro pullback under VWAP on the 10-second chart, and I lost 3,100 dollars.

So, I got in right down here. It popped up to here, and I was I was in it like this area. So, I got in a little high. Uh first 1-minute candle to make a new high, it dips back down right here, comes back up, comes back down, and I stopped out right there, and lost 3,100. So, at that point after two trades, I was up 400 dollars on the day. Didn't have much to uh show for the morning. And I thought that by itself is a caution flag.

I got to take my foot off the gas, slow down, and wait for something better. So, I sat tight. I didn't think I actually was going to get any more trades. And then, Mask starts to pop up. This is a stock that made a big move last week. And when it first popped up this morning, I observed that we had this descending resistance line from last week. It ends up breaking through that level, and I said, "$3.50 is a line or sorry, $5.50 is a line in the sand." I got in for the break of $5.50.

It goes up to six. It pulls back. And just the move from $5.50 to six was enough for me to lock up about $4,000 of profit. As of right now, it went up to a high of seven, and now it's come back down. So, none of the trades today, as it turned out, were big winners. Um M-Tech had I what I thought was the potential to become a big winner, but it didn't work out. Mask was just a base hit only. Um glad to be green. So, $4,400 is just shy of my $5,000 cold market daily goal.

And I'd say that's a good start to the month of June. It's a green day, puts me on the leaderboard here. And you know what? Who knows? Maybe tomorrow, we do get that catalyst that fits within my price range that I can crush, and I'll make 50 grand. You know, I had a number of really good days last week, and a few great days in the month of May as a as a whole. And so, I just got to be patient. Today was kind of a miss, but I'm locking up $4,000.

So, if each day that's a miss, I can lock up a little bit of profit, then on the day when, you know, we really get something that works, those days are just going to I mean, they're going to add a lot of icing to the cake. In fact, they're going to be the cake. These days are really the icing. Um but, my guess is that they'll be more base hit days and only a couple of huge days, cuz that's typically the way it works.

But, those huge days can amount to 80% of my gains on the month. I mean, it can really add up very quickly. Um I actually have not yet um done my report for the month of May and export all my trades. So, I've got to do that and then we can look at my metrics for the month as a whole. But, in any case, this is where I sit here today. Now, if you guys want to check out the SpaceX IPO video that I made or the episode that talks about my brand new small account challenge, I'll put links to those two episodes here that you guys can watch after this one is and is over.

And I'll remind you as always, if you want to do a two-week trial, you can watch over my shoulder as I'm trading the markets. These next two weeks should prove to be very interesting. So, it's a great time to do a trial. So, make sure you guys check that out and as always, remember trading is risky. My results aren't typical. So, manage your risk, take it slow, and I'll see you guys streaming bright and early tomorrow at 7:00 a.m.

Eastern Standard Time.