We are big proponents of shorting over-exaggerated microcap public release pumps (pr pumps). Today we had the opportunity to short Inventergy Global ($INVT stock). According to some headlines, INVT hired a penny stock pumper to push the stock.
After looking at its horrible financials and balance sheet, we were confident shorting this pig back into the ground as it popped +107% at its intraday high. The company has a huge debt load (larger than its current market capitalization) and a dwindling cash supply lasting a couple months at most. We expect a secondary offering to raise cash as imminent, diluting current shareholders or shall we call them "bagholders."
We covered on the way down and wanted to overnight partial of the position, but since it's almost end of the year we want to keep our books flat as possible so we took all profits into the close.
INVT short was a very easy trade for us as we understood the financial distress of the company needing to pump its stock up right before a massive imminent equity raising. All live trade alerts are posted in the #MookTrader stock chatroom for members only.