Nothing says "healthy business" quite like an educational micro-cap with an $861,000 valuation writing a formal letter begging the public to see their "fundamentals." That is the catalyst behind $KIDZ gapping up 43% today.
When management has to write a letter to defend the stock price, it is usually because the charts cannot do it for them. The data is clear: in 10 prior gap-up days for $KIDZ, the stock faded to close in the red 80% of the time. The market does not trade on letters; it trades on liquidity.
We saw this movie on Friday when we tracked the $SXTC dilution—which closed down 75%. If you bought $KIDZ today hoping for a squeeze, you might have just signed up to be the next long-term investor.
Close the trading tab and take a long lunch.