Folks in today's video, we need to talk about one specific 33 Cent stock with a potentially very powerful squeeze setup a stock that a lot of the whispers are saying could 10x and a lot of the other whispers are saying could one-tenth in this video I'm going to present you with the stock, the entire setup, both the good and the bad and the Catalyst that you need to know about and the further ones coming in the future. And of course, before we get into it, we'll also be discussing other plays and updates on those. and today's video is brought to you by zip Trader you and our Flash 40 coupon code which will be expiring shortly on Friday Flash 40. we'll get you 40 off our full program and unlimited access to our step-by-step license, private chat, daily morning briefings, and full price Target list along with all other trading resources.

Okay, so let's go ahead and start with Recaps on plays. So we'll start with comms. So we briefed on comms at about seven cents yesterday and it had a small fake out after open before it ran up to 17 cents at highs towards close. from briefing price to highs that was 142 increase.

But how did we find it? It was showing proof of concept, kept in the pre-market and was selling off, setting the stage for a post-market bounce. if volume continued to stay elevated and the overall direction continued holding upward. and this was successful. But there's a very important lesson here.

Look what happened the day after which was today. It sold off and it sold off violently. People across the internet yell Buy and Hold Buy and Hold You have to buy and hold So retail Traders are walking away with the wrong impression that literally everything deserves to be bought and helped when in reality, that is certainly not the case. In fact, most things don't deserve to be bought and helped.

The only thing that you should be buying and holding in this economy are canned goods and other end of the world equipment. Just kidding. Well, kind of. But the point is, when it comes to Catalyst Runners they always always end poorly, especially micro caps.

There's nothing to like long term in a NASDAQ stock that can't even meet the threshold to stay above a dollar. This is the definition of a sketchy sketchfest. Penny Stock And it will eat your lunch if you let it and you should be be hungry. You should not let others eat your lunch next.

Fnhc This was a wild play. Mr Wildy Mcwildy We briefed on this one halfway or so in the first cycle. it skyrocketed and then I called it out wrong on the channel saying that it would be unlikely to bounce back due to the massive sell-off, but that was actually wrong. Very wrong.

A few trading periods later, it started showing proof of concept again and we started briefing on it again on the 13th, which was pretty good timing and it ended up going from around 32 cents to 120, a 275 percent or so increase from briefing price to highs. Obviously the goal with briefings is to narrow down catalysts and narrow down all the noise in the stock market so that you could actually find stocks that have and our view a higher likelihood of running based on different characteristics that are running in the current market environment. But when you are building your own morning bravings or you're looking at ours, there's a few takeaways to remember here. Number one: you can be late.

We were late on the briefing here and it still doubled afterwards. Number Two: You can be wrong. On the immediate day on the 13th, we briefed on. It was the first time in the cycle that we briefed on it and it went up a bit, but then the setup didn't really realize itself until a day or two later.

And then of course, number three. Every Catalyst play has an end point where it Dives massively and people take profits and the bottoms just fall out. So again, if you're somebody that believes that holding and hoping is the only way to go, you belong to the Church of hold and hope. Please rethink that religion.

You need to have concrete entries and exit plans. An example of that is, let's say you take the directional approach above our redirectional SMA Perhaps your plan is. well, I'm going to buy in when the price action breaks and holds above the redirection SMA line and then sell out when it breaks below it. Sure, that isn't going to get you all of the run.

In fact, you're going to miss a lot of it. but at least at least you'll have your risk controlled because you'll sell out when it breaks Direction and you'll have an actual take profit at actual take profit. Point Next Madam Lays So this is a stock that I had high optimism for because I liked the weekly momentum setup. We projected a take profit period was going to happen early on in the week, and that did happen.

But but it went farther than what we wanted to see and it's really failed to meaningfully find support and bounce. Worse yet, it had a fake out period that got completely eaten up. That said, if the low today becomes support that holds through tomorrow and over the weekend, I'd have renewed optimism for a new high, but if not, I'd consider this a failed play. So those are my updated thoughts on the latest play.

Okay, now for the ticker of the hour Mullen Now I Do want to go ahead and preface this by saying that we do not have a position in the stock that we're going to be talking about in a few moments, nor any of the small caps covered in this video. Nor have we been paid by the companies to talk about them or any promoting agency or anything like that. I Want to remind you of that just so that you know that my opinions in these videos are my true opinions and whether they may or may not be correct opinions? Well, they are in my opinions. So context.

We briefed on Mr Mullen this morning at about 23 cents a share because it was a squeeze candidate that purchased the assets of Electric Loss Model Solutions and has previous history of massive spikes on small cattle analysts that usually get eaten up pretty fast but tend to run pretty aggressively in the immediate aftermath. All of things that set this up for a nice run, which it did indeed have. But what about this moving forward? Why even talk about this right now? Charlie While the stock is down quite a lot and that is the understatement of the century, but it's down quite a lot from Highs at 16 bucks a year ago and it's a lot easier to make massive moves. To the upside when you're trading so damn low and the company is still showing some ability to purchase and acquire new companies, right things that make it consistently stay relevant more or less.

So let's go ahead and start with this new deal that pumped the price today. So according to Seeking Alpha the deal includes the acquisition of the acquired firm's manufacturing plant in Indiana capable of producing 50k Autos per annum. Mullen Also acquired all intellectual property of the defunct Auto Company Honestly, I See that as enticing. Very enticing for Catalyst speculators.

I mean you have the small EV company that otherwise would be struggling quite a lot to build out this level of a manufacturing capacity and they're just going and buying one for really a massive discount because of the current market that we're in. and when you're able to acquire Technologies and capacity instead of have to build it out yourself, well, that is a huge huge skip ahead in cheat code. Now on one hand, yes, this is a dangerous deal in the sense that the deal was at about 240 million dollars and Mullen's entire market cap is like 177 million and Counting which means Mullen is paying more for this company than its entire market cap is and we'll explain how at the end of the video. but on the other hand, from a positive perspective, if this run retains itself and this continues to cause Mullen's price to go up, perhaps part of the acquisition pays for itself and of course perhaps Mullen's goals are more likely to be hit and even sped up.

Which from a purely Catalyst spec basis and I'm choosing my words carefully here because you know how I feel about this economy, but from a purely Catalyst spec trade basis, this bodes well for the stock. In fact, Mullen said that this acquisition quote allows acceleration of the path to production and market for Mullen 5, which is their vehicle and Bollinger B1 B2 retail Vehicles by 12 plus months. So that's a substantial acceleration 12 months and amongst other benefits, the platform and plant acquisition results in a significant reduction of the company's previously forecasted overall spent. which means in theory, if these things are true, well faster time to Market and and lower expenses to get to Market.

And last month, they did another acquisition quote on Thursday September 8, 2022 Mullen announced its acquisition of a controlling interest in EV Truck Innovator. Bollinger Motors This is Mullen's first EV acquisition and propels the company into the medium duty truck classes three to six, along with the B1 and B2 sport utility trucks. The purchase price is 148.2 million in cash and stock for a 60 controlling interest, which gives Mullen the majority ownership of Bollinger Motors and positions Bollinger to capture the electrical, electric, sport utility, and Commercial Vehicle markets. So it's like, okay, Mullen is attempting to acquire its way to success success, acquire distressed competitors at cheaper than otherwise they would be able to if these were more if these were normal market conditions and hopefully use that to gain a massive market share when the economy recovers.

and in terms of very, very close by Catalysts. on October 27th, Mullen is starting a specific analyst tour which could provide a lot more coverage for the super small cap. And historically, when super small caps get a lot of coverage, they tend to go up maybe a little bit less in this market condition. but tends to be the case that traders that like to do short-term trading.

they tend to be available in any kind of market. So how do we look at Mullen Stock moving forward. Now that we already had today's run well, this is my thought process. If you are ever late to a setup and you've seen it coming off a run that looks like this, the mindset that you have should never be.

Oh I need to buy in as fast as possible because then you would be fomoing the mindset should be. Oh okay, it's run quite a lot. Maybe it runs more, Maybe it doesn't But I'm going to wait to see if this Momentum has the potential to continue first before getting in or getting back again if you've already locked in profit. So do you hear that it's not guessing if the stock is going to go up more or assuming that the stock is done running? No, it is looking at the stock and acknowledging that both situations can happen.

And I need to watch the stock price to determine which is more likely what is a risk management to do that? Well, wait until it sells off and find support. If it finds a high support level, then you know there's a substantially higher chance that the Momentum is still in a period of time where it's active rather than dying and you look over at the options chain for contracts expiring this: Friday you have significant concentration at strike prices 50 cents, one dollar, and 150 with open interest at just about 10 975, 31, 677, and 27 945 respectively. Keep in mind that a one dollar strike price is still like three times the current price still, which means there's a lot of concentration at strike prices that are a lot higher than the current price. which means a lot of money betting that it's going to go up a lot more and you even have concentration going out to 250 which has 21 000 contracts.

But overall, the takeaways, there's still a significant interest in this going substantially higher and for expiring October 28th, you're starting to see concentration start at 50 cents, which suggests markets think it's at least going to hold near current levels right. At the time of filming this, we had only hit Highs at 41 cents. Yet, people are buying contracts that are only going to be valuable and in the money when they hit above 50 cents and and these contracts expire seven days from today. So what does that mean? It means that people think that this aggressive Catalyst run which usually in this market these Catalyst runs just give away within two days.

Well, people think it's going to break above 50 and retain in that general area minimum through next week. So I mean I Don't think it's terribly unreasonable if you read the options chain and you read the TA on the chart and you read the different catalysts to think that hey, if this does show that proof of concept with retaining of support and it bounces off that I don't think it's terrible to see the opportunity that you could find a nice risk managed position with a small amount of capital. To the upside: Okay, now the risks and the ugly. and there's a lot of ugly now.

I was critical of Mullen in the past. If you've watched a lot of videos on this channel and you've been watching the channel for a while About six months ago, I was very, very critical of two things: dilution and financing and Leadership but we're not going to get into leadership right now. The fact of the matter is that when it comes down to dilution, things have gotten substantially worse. How does Mullen seemingly have unlimited money to keep acquiring interest in more and more companies? Well, that dirty d word dilution and donuts, but mostly dilution according to investor: Place Mullen Automotive Listed on the NASDAQ exchange last November after completing a reverse merger with Netelement.

After the closing of the transaction, they there were 51.17 million shares of Mullen stock issued and outstanding on a fully diluted basis. As of August 10th, there are 509 million shares outstanding, Which means that shares outstanding have increased by 895 since the merger. 895 share increase during a massive massive bear market for small cap stocks. But that's how they came up with all this cash.

Talk about a mass and in fact, according to recent filings, Mullen has the approval to issue 2.25 billion more shares and insiders are eligible to sell over 900 million shares whenever they want. So I mean from an investment standpoint or even a hold more than the stock shows. Proof of concept for on a minute-by-minute basis standpoint. this is a hell No from me.

Something we said six months ago and got a lot of criticism for six months ago for by the way. but from a spec trading perspective during pumps, a risk on Trader can rationalize very short-term small positions with risk management. Today's run shows very clear the opportunities when you do get these days where cattle pump. But keep in mind that the longer that you hold it, the more likely you are to deal with random massive dilutions, some that you won't even see coming at all.

Anyways, that caps off today's video: If You want to get access to our step-by-step lessons, private chat, daily morning briefings, and full price Target and actually build a strong foundation for your trading. Well, I'm going to go ahead and put that link down below and our program is still 40 off until Friday at midnight. So if you want to take advantage of the coupon code flash 40, make sure to do it before that. Take a little bit of time and look over the program and see what it is that we offer and ask yourself can we Are we the right fit to help you meet your goals and I think that we very well might be Anyways, have a great rest of your day and we will see you in the next video.