Big Gains for Mental Health Tech Firm
Markets started off today with some solid gains, attempting to rally after yesterday’s losses. The early rally, however, has devolved into volatile trading—with major indexes sitting near neutral at the time of this writing. Today’s tepid rally may be a bearish indicator: markets are sitting below their 200-day moving average after yesterday’s losses. In recent months, this price-point had been vigorously defended by bullish buying sprees. But that response appears muted this time around.
Predicting the next turn of this wild market narrative has continued to be incredibly difficult—if not impossible. Traders relying on news-based analytics, however, don’t need to predict the overall direction of the market to make money. Quantitative stock traders have the information necessary to profit on market momentum—no matter its direction. You can learn more about how news-based trading thrives in the most volatile market environments in our (100% free) training seminars. There’s still room in the next session:
A common-sense principle lies at the core of our approach: any stock-related news event is a potential profit opportunity. In the past week, we’ve made money on everything from shorting a blockchain firm being investigated for fraud to promising data on potential new cancer treatments. Today’s Top Performer demonstrates how even more subtle financial news events can drive substantial trading profits.
Today’s Top Performer – Mynd Analytics NASDAQ: MYND
MYND is focused on improving mental health outcomes through the combined use of telemedicine, data analysis, and “augmented intelligence.” This morning, they announced the placement of $2.1 million in Class A Preferred Stock, representing a sale price of $2.00 per share.
Class A stock means these issues were sold privately, rather than exchange-traded. Preferred shares typically hold extra benefits (eg. Dividends) relative to common shareholders. In this case, the sale price of these preferred shares represented a substantial premium on the public trading price of MYND, which was trading around $1.26 at the time of our News Alert this morning.
Investors have been piling into the stock since, driving it to gains around 70% at the time of this writing (actually a retreat from earlier gains well above 100%). The logic investors are pursuing likely revolves around the sale of these shares to knowledgeable health industry investors. The decision by knowledgeable industry players to invest at a premium serves as a powerful signal to investors. The purchasers have presumablyy both reviewed the books and market potential of MYND’s tech–and liked what they saw.