Let me start off by saying that you all are smarter than me, but if you ask me, this stock looks a little rich. Super levered. Trading at a higher expected EV/EBITDA versus where similar companies have traded - doesn't look like the expected EBITDA is going to be realized...a concern for an overly levered company. Weaker than expected earnings this quarter pushed the stock to 12.15 on 5/8. Now word that a NY hedge fund manager has a stake in it launches the stock price to over 15. Combine that with 15mm shares sold short, Ron Perlman indirectly owning 34mm shares, top 10 institutions holding 31.49mm shares, a share count of 85.82mm shares, a float of 36.7mm shares, a 3 month average trading volume of 1.28mm shares, and 72,839 contracts written on the 15 call for months June to January, and I think that we are getting ready for some interesting price action. Hello volatility!
MNGA is major trading news after confirming the sale of its MagneGas® to two major buyers based in the US. Both buyers could buy more of MagneGas® which means huge growth potential for MNGA.