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$SPCX -1.64% — what the base rate says

$SPCX -1.64% — what the base rate says

Vertical Aerospace ($EVTL) drops 36% today on news of a '$100 million financing commitment' to advance certification. To the untrained eye, 'financing' sounds like progress. To anyone who can read a balance sheet, it's a massive dilution warning for a company with a $337M market cap.

The retail crowd loves to 'buy the dip' on these drops, thinking they got a bargain. But the historical base rate is cold: catalyst-driven gap-downs like this close red 59% of the time across 865 similar setups. The initial drop is rarely the bottom when new shares are hitting the bid.

What is your rule for trading dilution events?

What the data showed

  • $SPCX -1.64% Space Exploration Technologies Corp.
  • $RCON -3.66% Recon Technology, Ltd. mcap $3M · float 9M shares · sector: OIL & GAS FIELD SERVICES, NEC
  • $YMT -21.21% Yimutian Inc. · closed red 59% · green 40% (n=1,421) mcap $16M · float 1M shares
  • $PLUG -3.44% Plug Power Inc. mcap $3.0B · float 1.4B shares · sector: ELECTRICAL INDUSTRIAL APPARATUS
  • $NVDA -2.70% NVIDIA Corporation mcap $5424.5B · float 23.4B shares · sector: SEMICONDUCTORS & RELATED DEVICES
  • $INTC -2.66% Intel Corporation mcap $512.7B · float 4.0B shares · sector: SEMICONDUCTORS & RELATED DEVICES
  • $ONDS -0.11% Ondas Inc. mcap $5.2B · float 492M shares · sector: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT
  • $HTZ -3.08% Hertz Global Holdings, Inc. mcap $809M · float 134M shares · sector: SERVICES-AUTO RENTAL & LEASING (NO DRIVERS)
  • $TENX -89.47% Tenax Therapeutics, Inc. · closed red 52% · green 47% (n=58) mcap $503M · float 6M shares · sector: PHARMACEUTICAL PREPARATIONS
  • $EVTL -36.74% Vertical Aerospace Ltd. · closed red 59% · green 40% (n=865) mcap $337M · float 67M shares

Don't guess how a micro-cap reacts to a 300% pump or a biotech trial failure. Run the historical odds on FILTRIX.net to see the real win rates before placing a trade. Discipline > FOMO

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