We are working in a late-stage bear market context right now, which means, as the old pros used to say, bears are an endangered species and tend to get shot on sight. In other words, anything with lots of short interest has a squeeze target painted on it.
In that spirit, we would invite attention on For The Earth Corp (OTCMKTS:FTEG) and Caduceus Software Systems Corp (OTCMKTS:CSOC), two very similar stories that could be primed for some squeeze action.
Caduceus Software Systems Corp (OTCMKTS:CSOC)
CSOC was a left-for-dead ticker on the OTC until December, when the stock took off to the upside. The company has started to get current with filings and seems to be locked in on a reverse merger candidate that could suddenly embody this ticker with a commercial-stage business driving real revenues.
The company just announced that it has selected a final candidate from among the various candidates that were being considered. According to the release, the target company satisfies a profile that the CSOC management team and board used to guide the search.
That profile includes: Revenues and Assets exceeding a total of 5M$; Projected revenues of over 15M$ for 2021; Expansion and scalability are key; Potential and eligibility for up listing to NADSAQ/NYSE; and Recession & Market proof industries.
According to the release, “Caduceus has been in discussions with the candidate for some time. However, given the existing confidentially agreements in place, the acquisition target candidate cannot be named as of yet. Nonetheless, based on the current status of our negotiations and due diligence, we are confident an LOI will be produced very shortly. The target company is located in the state of California and has products currently being sold in the US and Canadian Markets with further orders to fulfilled at a future date through large retail chain stores.”
In addition, OTCshortreport.com shows CSOC shares to be overwhelmingly popular among active bears, with over 15 million shares of short-side transactions over the past few days making up almost 75% of all transactions in the stock over that period.
For The Earth Corp (OTCMKTS:FTEG)
FTEG is a similar story. This left-for-dead ticker has been perking up as well. While the company hasn’t put out any press releases encouraging speculation on a merger, the signs are there.
One of the main signals is the recent rush of filings being disclosed to bring the company up to “current” status. The company also hired an independent lawyer to review documentation and submit a Sufficiency of Adequate Current Information letter to OTC Markets Group.
This is often something done ahead of the announcement of a reverse merger and a new entity gaining control of the stock.
In addition, over the past 20 days, over 54% of all transactions in the stock have been shorts at work according to OTCShortReport.com. The vast majority of days during that period have been dominated by shorts betting against the stock.
Given the pace of filings, we could be near a more manifest signal from the company about the potential for a merger announcement, which could spark a major squeeze.
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 compensated fifteen thousand dollars for news coverage of the current press releases issued by Caduceus Software Systems Corp by a third party.
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