Today consisted of a Bullish run, New 52 week high & and a direct offering that scared off many investors with $KTOV- What does this all mean, why maybe the panic selling wasn't the right move after all & where do we go from here?

(Thread below)

*Always remember, this is my opinion based upon my research. I've put lots of time into this stock so make sure you always research before investing*

1. First, today was crazy, it felt like the stars were aligned. Pre-Market had $KTOV hitting in the $1.20s & the Dave Portnoy effect seemed to give KTOV the awareness we needed to see another strong run as we waited for a Collab, but then lunch time came & things got weird...

2. Before we get into that, let's look at how $KTOV has ended up in each stages of trading over the last few days:

Up Friday pre-market
Up Friday
Up Friday after hours
Up Monday PM
Up Monday
Up Monday AH
Up Tuesday PM
Up Tuesday
Up Tuesday AH

.....

3. $KTOV continues to make higher highs & higher lows, a recipe for growth. The amount of volume has been unreal as well:

Monday - (150 Million)
Tuesday - (332 Million)

When a stock's price and volume increase, it indicates the buying interest in the stock as we've seen...

4. As stated in previous threads before, we've begun to see the potential with $KTOV & everything circulating this stock as far as their unique potent drugs, collaborations & potential sales now with Consensi available in the US. But then, a direct offering hit us at 1:20 PM...

5. & BOOM! We saw a bullish stock drop from $1.15 to .81 & everyone went nuts. I mean, do you blame anyone? I myself even contemplated just throwing in the towel. I let my emotions almost dictate my decisions but then I remembered WTF I've held for the last 2 months..

6. Once I calmed down, my first reaction was, "oh shit, this is a direct offering". The last time $KTOV did a direct offering, the stock went up 17% pre-market. Now, you might ask, why did it go down? I believe there's multiple variables here, let's discuss them...

7. First, straight panic sell, an emotional response that led to a behavior in selling. Offering can mean different things in stocks & seeing the word offering probably gave off a reaction to get the hell out and many followed suit. I mean, it's normal, you get scared & react...

8. But this was a "Direct" offering, where no dilution of stocks take place, a huge benefit for the company & in my opinion, for investors. I'll explain later but let's focus on the other offering that isn't so good in often instances, public offerings...

9. There's a couple reasons based on my DD. First, it could indicate that the company is having difficulty maintaining financial solvency with current revenues and is in constant need of additional financing. Layman's terms: we need money so let's dilute to get what we can...

10. Second, in public offerings, new shares are created, underwritten & sold to the public instead of using existing shares which drive the worth/price of each share down, it's not as valuable. Dilution at it's finest.

11. Think about this: Suppose a company has issued 100 shares to 100 individual shareholders. If the company then has a secondary offering and issues 100 new shares to 100 more shareholders, each shareholder only own 0.5% of the company.

12. Now to the Direct offering, a little different ball game. Let's look at the offering first (see picture). $KTOV did an offering at .90 per share to health care focused institutional investors. NO new shares offered and valued at $35 Million but here's the golden nugget...

13. .. The deal was done Monday. If we all remember, $KTOV closed at .77 & if I do my math right, the offering was agreed upon at a price (.90) higher than the actual close? But why? Does that even make sense?

14. If the company is buying HIGHER than the actual price of the stock, this tells me a few things. 1. Expectations are HIGH and no company is giving away money of that size without some form of promising potential & a good deal...

15. 2. On Monday if you told all of us that when the market closed at .77 cents, that healthcare focused institutional investment firms were going to buy $35 milli worth of shares at .90 per share that woulda been great news. Why? because price is below that, why wouldn't you buy

16. Also, why else would a company buy at .90 considering $KTOV had been consolidating for months in the .40s? Maybe because something is going to drive the price up so they know it's a good deal? Maybe something like a powerful Collab like the $SURF Collab example?

17. Clearly all speculation but think about it, $35 Million and you buy a stock for .13 more than what it's at? If I'm an investor, I'm not doing that unless there's for sure something benefiting me. Maybe I'm wrong but that's my mindset.

18. So where do we go from here? What's next? The next interesting thing is the offering closes Thursday. Well, first, $KTOV was already funded through 2021 before the offering. So they weren't poor. Second, no new shares is huge and it's undervalue even more now w/ .90 offering

19. Third, the Collab partner still hasn't been announced. You would think they'd fire it up after the offering closes? Maybe they needed to secure this funding to attract the likes of Merck or Lilly to finalize a Collab? Maybe I'm wrong but when you dive deep, $KTOV seems solid

20. When you look at it, $KTOV is still trending up & even the panic selling fear of a direct offering didn't ruin $KTOV from still being Green today. Knowing shares aren't diluted & an offering being purchased at .90 when price was .77 all make me think hard about this stock.

21. When you look at it, $KTOV is still trending up & even the panic selling fear of a direct offering didn't ruin $KTOV from still being Green today. Knowing shares aren't diluted & an offering being purchased at .90 when price was .77 all make me think hard about this stock.

22. & then we have the NT-219 Collab partner still yet to be announced which is what we've been wanting/banking on. You'd have to think, we're kinda still in the same spot we were the last few days. Some investors are down, some are up. But what we want still hasn't come...

23. So that leaves us wondering what will happen? I continue to hold & focus on what could happen given a Direct offering doesn't hurt us & the $SURF Collab that happened last month shows us promising upside if it's Merck of even if it's Lilly (Higher share price).

24. Our catalyst is still out there & we hope it comes to reward us greatly. It'll be interesting but I look forward to seeing what happens. I hope this helps, let's pray a collaboration hits but given this DD, I'm not running yet & hope $KTOV takes all of us to the promise land!

@yatesinvesting @StanTradingMan