Investors have been weighing the risks associated with three late term tickers held in a custodianship play by George Sharp. Banking on his past successes, bullish investors were exuberant when George Sharp shared on August 31st that the process had been started to register Goff Corp. (OTC: GOFF), Good Vibrations Shoes Inc. (OTC: GVSI), and Stratos Renewables Corp. (OTC: SRNW) with the SEC. Of course, time is of the essence for these three stocks and investors have been holding out to see if the risk will pay off.
But recently there have been some positive developments for the stocks which have yet to become current with the OTC Markets. SRNW had an 8-K drop on September 8th which disclosed that BF Borgers CPA PC has been engaged to audit the company’s financial statements for the fiscal years ending December 31, 2020 and December 31, 2019. The resulting 10-K will be filed prior to September 28th to meet the SEC deadline.
This update has led bullish GVSI shareholders to predict GVSI will be next. It appears the company dropped a filing on August 30th with the Nevada SOS but the document has yet to be released. In the meantime, many investors are still holding on to the stock. September 8th saw notable activity for GVSI after a general selloff began on the 3rd and continued until the 8th before ending in a 36% bounce back at market close.
GVSI is particularly popular given the stock’s share structure, lack of debt, and small market cap of only 93 million. After a 47% drop over the last few days the stock is mostly held by shareholders loyal to George Sharp who they believe will get the stock current before the deadline. Some investors are even speculating that a merger candidate is already in the works making a connection between GVSI and SWAPP – a DeFi protocol that allows individual users to monetize their own data. This speculation has been fueled by one of the co-founding members of SWAPPFI, @JeremyPlatt90, who has been retweeting posts regarding a potential merger between the companies.
While George Sharp has not been forthcoming on information for these three companies, his August 31st tweet mentioned that the filings would be “for the benefit of the POTENTIAL acquisition targets who require funding options available specifically to reporting issuers”. Also on August 31st, a twitter account @OTCpinkGVSI was formed announcing it “is the official Twitter feed for $GVSI”. George Sharp has since retweeted the post and has done the same for @OTCpinkGOFF and @OTCpinkSRNW. Updates on filings and official statements will likely come through these accounts considering that George Sharp’s twitter account is not accessible to all users.
With almost all OTC investors watching the few stocks that appear to be in the process of becoming pink current, the volume for these three stocks could be immense as the process plays out. While there is a significant risk to investors if the stocks fall through, many seem ready to take that risk.
@CastratrixX shared her predictions for the day but it remains to be seen if George Sharp will follow through.
Beginning before the three day weekend but continuing on the 7th, the panicked selloff ended on the 8th when the stock bottomed out at .0285. Now trading at $.0389, the stock is showing a support level near .0371 and a secondary support at .031. Its possible resistance level is near .048 and a secondary resistance at .0510. Accumulation has been similarly volatile but is improving and its RSI is at 48 with signs of positive movement following a bullish MACD crossover right before close on September 8th.
Should you Buy?
The likelihood that all three stocks will become current before the deadline, let alone find merger candidates is relatively low. However, the amount of interest surrounding GVSI makes it a potential momentum play for investors who are still able to trade the defunct stock. Time will tell whether the stock becomes current and if SWAPP is a merger candidate for the company. However, any potential merger candidates will only be disclosed after the company has come in line with the OTC Markets’ regulations. Given the stock’s recent volatility, once the August 30th filing is disclosed or more information is provided, the stock could hit or surpass its resistance at $.051.
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