1. SEC investigation
2. Over 1.7mm shares free to trade from initial investors at $4.00 bucks (take a 100% profit)
3. In 60 days mgt can begin selling 17% of stock issued (crazy amount of stock issued)
4. No NASDAQ uplisting in the near future for now (mgt avoided questions from last conference)
SEC investigation has already been announced, and the market has already reacted. As more information about the investigation becomes available, the stock will go down - or up - accordingly.
Predicting future price movement in this stock based upon available number of shares is beyond stupid. ASSUMING your numbers are right:
- The 1.7m shares free to trade from initial investors at $4.00 have BEEN free to trade for a long time. I'm quite sure the initial investors were hoping to sell those shares much closer to $40.00 than $8.00, and - at least from a sales growth perspective - not much has happened to change anyone's estimates of future valuations five years down the road.
- I believe that 17% of the "crazy amount of stock issued to mgt" is about 225K shares. The percentage of those shares that will be sold will (presumably) range from 0% to 100%. So 60 days hence, mgt could choose to sell between 0 and 225K shares over a period of time? Yawn.
The fact that there is no NASDAQ uplisting in the near future for now is already known, and the market has already reacted.
I'm not saying that this WON'T go lower.
I'm just saying that it could go lower, or it could go higher.