Majic Wheels Corp (OTC US: MJWL) has been a bearish encampment for the past month, with shorts piling in at a ravenous pace.
However, the company’s website just shifted to show a banner noting, “New Company Launching Soon”.
We generally take something like that at face value. Hence, we would assume a company that has recently returned to current status and put a notice like that on its official website could be looking at a major series of catalysts on the way.
The Squeeze Potential
The data shows that MJWL is a heavily shorted stock, which is an important dynamic that should be relevant for shareholders.
Specifically, MJWL, which is now in transition, apparently, as a company, has been shorted massively, with over 344 million shares transacted as a part of short-side transactions (out of about 506 million shares involved in total transactions) over the past month of market action.
That’s over 68% of total transactions over that time.
In addition, 17 of the past 19 market sessions have seen more than 50% of all transactions occur as the result of shorts making a play on the stock.
Shorts have greater vulnerability than longs due to their inherent greater risk in terms of contrary movement, given that longs have only to worry about a move to $0/share while shorts must contend with infinite potential losses.
That skewing of outcome distributions feeds back to inform the game theory landscape that defines all decisions in such situations. In the case of MJWL, we could be lining up a squeeze.
Majic Wheels Corp (OTC US: MJWL) most recently announced that it has new management and intends to file with the OTC Markets to become OTC Pink Current.
Since its last filings, the Company has not provided substantial information to its shareholders. This is because there has not been a change in material events. Denise S. Houghtaling has resigned from her duties as the CEO and Sole Director of the Company. The Company is now under the new control and management.
The Company recognizes its profile will need to be updated with OTC Markets. The Company plans to apply for OTCIQ ACCESS to update the profile and upload the required financial and disclosure statements to achieve Pink Current Status.
The Transfer Agent is Transfer Online, Inc. and there are no gag order instructions currently in place. The float and verified numbers will be streamed to the OTC Markets profile page.
Please look to the company’s profile page on OTC markets for any information regarding the Company and or Official Press directed from the Company.
DISCLAIMER: EDM Media LLC (EDM), is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. EDM is NOT affiliated in any manner with any company mentioned herein. EDM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses, and may NOT sell, offer to sell, or offer to buy any security. EDM’s market updates, news alerts, and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. EDM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed EDM has been not compensated for news coverage of the current press releases issued by Majic Wheels Corp (OTC US: MJWL).
EDM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and EDM undertakes no obligation to update such statements.
EDM Media LLC