RMGX up 752% Friday, February 3, 2017

Not a marijuana stock, but these peak my interest.  A Nevada filing suggests that THE BLACK SHOPPING CHANNEL, a firm with a market capitalization of $700M in 2014, might reverse merge into the RMGX corporate shell.  Even after Friday’s increase, RMGX has only a $7.4M market capitalization, so only about 1% of 2014 fair market value.  I would be concerned about a reverse split, but there is likely to be some follow-through on Monday, February 6, 2017.  Anticipating a gap up at the 9:30A open.  Watch to see if the bid and ask on level 2 gets a bit silly 10-15 minutes before the 9:30A open.

If so, you are likely to want to sell very, very quickly into a gap up.  Tough to say.  Frequently, the open over-reaction drops back as ANY decline leads to a sell-off, only to resume upward movement later.  In other words, keep an eye out for some “bouncy” trading.  I will not be buying at 9:30A if there is a gap up, but might day-trade later in the day if I see a good entry and exit opportunity.


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