My take on TRKA

If I speak for myself, I had no problem with the stock, I had no problem with the up and down days. This dilution thing though, I will be honest, scares me. On top of that, I read this.

"Under the terms of the agreements pursuant to which the Series E Preferred Stock was issued, the Company is prohibited from engaging in a reverse stock split, which is the typical technique for remedying the failure to meet the bid price rule. Thus, the Company will be required to either obtain a waiver of such restriction or if such waiver is not obtained to breach such agreements or to face delisting of the Common Stock from Nasdaq."

So they have to get their price above 1 dollar until May 15 and they cannot make a reverse split unless they obtain a waiver otherwise it can be delisted. Now I know May 15 is still 2 months ahead but I assume the shorts will do everything in their power to keep this down. I am not sure if Series E Pref. holders would agree to reverse split, which is also bad news for us anyway, so I feel like too many risks here. Again I am not saying buy or sell. I just tell you my reasoning.

The first plan was "this is a good company with results, it is heavily shorted so it will create a short squeeze at some point" which sounded reasonable so I was in.

Now it looks more like "outstanding shares are increased but cannot be traded yet but that is enough to scare retail investors also if they cannot reach 1$ and stay there for 10 days in the next 60 days, they might be delisted. Oh and if they are thinking about a reverse split would save them (which is bad news for me again), they cannot do it without obtaining permission from Pref E holders."

The situation has changed for me so I am out. Good luck to everyone who is in.