On Friday, we alerted our readers about Eyecarrot Innovations Corp. (EYCCF) (EYC.V) at $0.235 upon news that Former Aurora Cannabis (ACB) CEO Terry Booth was named as Executive Chairman. After a couple of up and down days, EYC broke out on Wednesday, moving up 54% to close at $0.315. We think that this is just the tip of the iceberg and a massive multi-day run to $1.00 or more could be in the works. We are up to 889 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 14 followers here. You can follow us on Twitter @StockTradePicks which has over 4,000 followers.
Why do we think that EYC can move so much? Booth being named as Executive Chairman is similar in nature to when former Canopy Growth (CGC) (WEED.TO) CEO Bruce Linton left and decided to focus his time on Martello Technologies (DRKOF) (MTLO.V). But is superior in a few ways that we will get to below. The market's reaction on Wednesday stemmed from a news release in the morning that Booth will be doing his first public interview about EYC on Thursday afternoon. Buyers are obviously looking forward to seeing what he has to say and if the stock sees any mainstream buying like MTLO did.
EYC was quite hot at the start of the year before the pandemic and market crash ruined its momentum. Its interesting vision care technology and deals with key sports figures coupled with Terry Booth's involvement will almost certainly get the stock trending and challenging 52-week highs once again. Booth said the following about his appointment to EYC:
"I am beyond excited to be a part of a new technology platform that will focus on improving vision globally. In particular, improving youth vision through this revolutionary technology that has not only been proven but is being used by world class athletes to improve their binocular vision, balance, and strength. Our product will set the standard in this nascent industry on a global basis,"
A similar start as MTLO, but could be an even better finish
EYC's performance last Friday is eerily similar to what happened with MTLO when Bruce Linton left Canopy and decided to focus his efforts on it. This is the price history immediately following Linton leaving Canopy last July:
On July 3, 2019, MTLO rose 39% on 6.6 million volume and closed at $0.265. This is almost identical to EYC's 38% move on 5.8 million volume on Friday. MTLO followed that up with several highly bullish days, culminating with a $1.00 high on the 5th day of the run before pulling back. While EYC gapped up on Monday at the open, it traded down in afternoon trading and on Tuesday. It was Wednesday that saw aggressive buying throughout the day that accelerated during the final hour with EYC ending at its day high. This is a very bullish sign and EYC is back on track for a possible MTLO-like run.
While there are some striking similarities between Linton and MTLO with Booth and EYC, there are also a couple of key differences that we think will make EYC an even superior mover. First, Linton had a history with Martello, serving as a CEO before joining Canopy. His focus on MTLO did not come as a complete shock, but still was enough to really move the stock. Booth becoming EYC's Executive Chairman is a completely unexpected development.
MTLO had 191 million shares outstanding at the time of the Linton news. Its market cap grew from $36 million to $191 million on the Linton run. EYC has just 51 million shares outstanding, or about 58 million if we include the private placement. It has just an $18 million market cap after Wednesday's increase. If it was to run to a $200 million market cap, the stock price would approach $2.00.
An additional thing to look closely for is the possibility of Terry Booth buying EYC shares on the open market as he could easily afford more than his 2 million share subscription. If that occurs, that will be another catalyst to shoot the stock way up.
Disclosure: We are long EYC.V
What's next for microcap stocks? TradeMiner identifies seasonal trends and market cycles, the Penny Stock Prophet and Microcap Millionaires finds the next big small cap plays in various industries while Addicted to Profits makes trades from a Canadian perspective.
There are also some good books available on microcap stocks and day trading such as:
Mastering Microcaps: Strategies, Trends, and Stock Selection (Bloomberg Professional Library)
The Little Black Book of Microcap Investing: Beat the Market with NASDAQ/AMEX Microcap Stocks, OTCBB Penny Stocks, and Pink Sheet Stocks
Microcap Magic: Why The Biggest Returns Are In Stocks You've Never Heard Of
How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
How to Day Trade: A Detailed Guide to Day Trading Strategies, Risk Management, and Trader Psychology
A Beginner's Guide to Day Trading Online (2nd edition)
Stock Investing for Beginners: Marijuana Stocks
Here are some other good stock market resources. This includes technical analysis and day trading, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies:
The dividend stock report from dividendstocksonline.com
Why do we think that EYC can move so much? Booth being named as Executive Chairman is similar in nature to when former Canopy Growth (CGC) (WEED.TO) CEO Bruce Linton left and decided to focus his time on Martello Technologies (DRKOF) (MTLO.V). But is superior in a few ways that we will get to below. The market's reaction on Wednesday stemmed from a news release in the morning that Booth will be doing his first public interview about EYC on Thursday afternoon. Buyers are obviously looking forward to seeing what he has to say and if the stock sees any mainstream buying like MTLO did.
EYC was quite hot at the start of the year before the pandemic and market crash ruined its momentum. Its interesting vision care technology and deals with key sports figures coupled with Terry Booth's involvement will almost certainly get the stock trending and challenging 52-week highs once again. Booth said the following about his appointment to EYC:
"I am beyond excited to be a part of a new technology platform that will focus on improving vision globally. In particular, improving youth vision through this revolutionary technology that has not only been proven but is being used by world class athletes to improve their binocular vision, balance, and strength. Our product will set the standard in this nascent industry on a global basis,"
A similar start as MTLO, but could be an even better finish
EYC's performance last Friday is eerily similar to what happened with MTLO when Bruce Linton left Canopy and decided to focus his efforts on it. This is the price history immediately following Linton leaving Canopy last July:
On July 3, 2019, MTLO rose 39% on 6.6 million volume and closed at $0.265. This is almost identical to EYC's 38% move on 5.8 million volume on Friday. MTLO followed that up with several highly bullish days, culminating with a $1.00 high on the 5th day of the run before pulling back. While EYC gapped up on Monday at the open, it traded down in afternoon trading and on Tuesday. It was Wednesday that saw aggressive buying throughout the day that accelerated during the final hour with EYC ending at its day high. This is a very bullish sign and EYC is back on track for a possible MTLO-like run.
While there are some striking similarities between Linton and MTLO with Booth and EYC, there are also a couple of key differences that we think will make EYC an even superior mover. First, Linton had a history with Martello, serving as a CEO before joining Canopy. His focus on MTLO did not come as a complete shock, but still was enough to really move the stock. Booth becoming EYC's Executive Chairman is a completely unexpected development.
MTLO had 191 million shares outstanding at the time of the Linton news. Its market cap grew from $36 million to $191 million on the Linton run. EYC has just 51 million shares outstanding, or about 58 million if we include the private placement. It has just an $18 million market cap after Wednesday's increase. If it was to run to a $200 million market cap, the stock price would approach $2.00.
An additional thing to look closely for is the possibility of Terry Booth buying EYC shares on the open market as he could easily afford more than his 2 million share subscription. If that occurs, that will be another catalyst to shoot the stock way up.
Disclosure: We are long EYC.V
What's next for microcap stocks? TradeMiner identifies seasonal trends and market cycles, the Penny Stock Prophet and Microcap Millionaires finds the next big small cap plays in various industries while Addicted to Profits makes trades from a Canadian perspective.
There are also some good books available on microcap stocks and day trading such as:
Mastering Microcaps: Strategies, Trends, and Stock Selection (Bloomberg Professional Library)
The Little Black Book of Microcap Investing: Beat the Market with NASDAQ/AMEX Microcap Stocks, OTCBB Penny Stocks, and Pink Sheet Stocks
Microcap Magic: Why The Biggest Returns Are In Stocks You've Never Heard Of
How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
How to Day Trade: A Detailed Guide to Day Trading Strategies, Risk Management, and Trader Psychology
A Beginner's Guide to Day Trading Online (2nd edition)
Stock Investing for Beginners: Marijuana Stocks
Here are some other good stock market resources. This includes technical analysis and day trading, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies:
The dividend stock report from dividendstocksonline.com
The dividend stock report from Dividend Stocks Rock
Goldmasterinvesting.com Ocean Of Gold Report for the top 15 gold mining companies
Trader Review
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
And try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
Goldmasterinvesting.com Ocean Of Gold Report for the top 15 gold mining companies
Trader Review
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
And try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
For those who are interested in trading bitcoin and other cryptocurrencies, here are some links to valuable reports and strategies:
