Stock Picks
- July 7, 2008
HCFI Stock Price Dive After Stock Split
“Healthy Coffee International” or “Health Coffee USA” restructured its game plan for the better with a stock symbol change and a reverse split just a couple of weeks ago. Since then, the stock has taken a sharp dive from $1.01 all the way down to 16 cents.
A 74 cent dip that calculates to a 82.22% loss is huge, but what does it mean? In pre-launch. A founder who believes this to be the next big opportunity of the decade decided to up and leave an international ground floor company that’s set to kick off in a few days? Probably not.
Possibly, one of Healthy Coffee International’s brilliant founders has put in a pull back…
I could see good reason for this (on their behalf). Let’s say one of the big boys owned 100,000 of the 362,000 shares of the company. He sold off at 90 cents causing the whole thing to fall to 16 cents. If he should by back into the company at 16 cents, he’d then own 562,500 shares. But remember he started with only 100,000 shares, so a move like this can harden his position with the company by a 5x multiple. Cash rules!
On everyone else’s behalf, it only adds the opportunity to buy in the teen’s instead of the ninety’s as one of the first shareholder’s in the company.
Shorts haven’t touch down yet, so I couldn’t imagine anyone else leaving at a cheap 16 cents. This could be a time to buy into HCFI at such a discounted rate, at least before a buy back.
Get Free Updates, Subscribe to MsMoneyGirl.net Stock Magazine by Email
« Previous post in category: Energy Stocks: TGC Speculating
Next post in category: The Story Of That Girl »


