crawfordpaul

LINK Short

Short
OTC:LINK   None
Interlink Electronics is an OTC stock that saw a large run up in share price on relatively low volume. The problem with OTC stocks is companies can sell shares back into the market creating somewhat of a "pump and dump" effect often times when these large run ups occur. The stock sold very quickly on 2/11/21 and during the price drop most of the volume took place around 15.18 which could be a good reference point later on. However, my expectation is that unless there is a partnership in the works or an innovation of product I do not expect any move back into those areas. The near term resistance for this stock to first break would be 13.88 and I wouldn't expect a close above this area only perhaps some potential intraday moves. My bias on this stock is that it returns to value or near where value was in January which would be closer to 9.14. Strictly from a technical standpoint, the stock looks like dead money and I expect most of next week to consists of short sellers closing out and potential for more share selling from Interlink into the market to perhaps regain equity. On the more fundamental side of things, this company has seen a decrease in EPS which is a good indicator of the stocks value relative to profitability. Their book value per share has also been relatively flat which concerning as it shows that the company hasn't been growing or coming to par with market competitors On a lighter note they recently brought on Maria Fregosi who specializes in financials, helping establish HMPT which has become a well preforming and established margate lender. For now this is the only bullish point I can make for the stock and I don't expect it cause any real floor establishment at these prices for the underperforming company.
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