Ticker: AVCT
Description of why you are requesting DD:
AVCT has been getting mentioned more on Reddit recently. I looked into it a little bit. The current price is $1.49. The open interest on January $2.5 strikes is 9.6k. Their market cap is about 120 million currently. That would make about 10%(edit: 1% my math is bad) of their total shares exercisable if it goes up $1. I don’t currently know what their free float numbers are, I will try to do more research when I get to my computer.
Edit: my math was bad on oi, so it would probably be a bad play unless the float total is sub $10 million. I do see a lot stuff about high short interest though.
Applicable links to news articles or Reddit analysis:
The OI is definitely helpful but the high CTB fees, high utilization, and previous high FTDs are a good indication something is brewing. Tutes and insiders own 55% of the stock. There seems to be growing sentiment across Reddit, Twitter, and StockTwits and closed quite strongly today. It will be interesting when actual SI % numbers come out in the next few days. I assume shorts re-entered on the previous spike mid-December.
There is a potential Catalyst on the 23rd of December in the annual shareholders meeting.
From what I’m seeing, this can easily break 2.79, and 3.15 right after.
But I’m not reading any positive news except that they’re trying to raise capital again.
This means retail will have to do the heavy lifting over 3 and maintain that across Jan opex.
I’d be careful not to stay too long here.
Unless there are new contracts or big investors coming in, there’s nothing to ride on except retail hype.
For now, a watch, and at best a scalp.
Yeah I closed my majority of my position because of this. Letting a few calls ride, will need retail to hold momentum if the conference provides no positive news. Seems very unlikely that an acquisition will occur and definitely not at the $9 price point. Will be interesting what is announced tomorrow in the AM.
If you caught this thread 6-9 days ago when it was posted, and entered the play, you should be well in profit and exit with greens.
Any longer and you’re just gambling or holding really long as an investor.
