11/12/2023 0 Comments Torchlight energy stockWhat this post suggests is that hedge fund managers are going to do their best to drive the price of Meta Material down in order to minimize the amount the funds would lose from having to cover their short positions by actually buying the stock. □Īs of June 15, some 15.3 million Torchlight shares were sold short, nearly a third of the company’s total float. This is not financial advice and i’m not a financial advisor. We know they have to cover, why give them any discounts. Today could be the start of a squeeze but be sure as are going to try and shake out as many people as they can before they fully cover. Torchlight will issue 455 million shares in connection with the arrangement. We are dealing with the Devil’s who manipulate the markets everyday to their advantage. Torchlight will acquire 100 of Metamaterial through the issuance of common stock, such that at closing, the former equity holders of Torchlight would own 25 of the combined company with the former equity holders of Metamaterial owning the remaining 75. That could happen, but we won’t know for a while yet.Ī post on Reddit’s r/TRCH group outlines the conspiracy: We’ve noted before that the total value of those assets is likely less than $100 million and the payout per share based on that value would be less than $1.00 per share. It was predictable because the only thing propping up Torchlight stock to begin with was an expected payout to former shareholders in the company who would benefit from the sale of Torchlight’s oil and gas assets. The stock is trading down about 2.5% at $9.65 in the premarket session.ĭepending on whom you ask, the lower share price was either predictable or a conspiracy. Torchlight stock closed at $4.95 a share Friday, and Meta Material stock was assigned a value of $9.90 prior to Monday’s opening. The new company, Meta Materials Inc., will begin trading on the Nasdaq after Monday’s opening bell under the ticker symbol MMAT. EST Monday, Torchlight ceased to exist and its reverse merger with Canada-based Metamaterials was completed. At the same time, it announced a reverse stock split of 1 share of new common stock in Torchlight for every 2 old shares.Īt 12:01 a.m. GuruFocus ranks the overall financial strength of Torchlight Energy Resources at 3 out of 10, which indicates that the financial strength of Torchlight Energy Resources is poor.After markets closed on Friday, Torchlight Energy announced that it had paid shareholders its promised special dividend of one share of Series A preferred stock for each share of Torchlight common stock. Torchlight Energy Resources has a cash-to-debt ratio of 0.01, which is in the bottom 10% of the companies in Oil & Gas industry. Looking at the cash-to-debt ratio and interest coverage is a great starting point for understanding the financial strength of a company. Thus, it is important to carefully review the financial strength of a company before deciding whether to buy its stock. Investing in companies with poor financial strength has a higher risk of permanent loss of capital. Link: These companies may deliever higher future returns at reduced risk. Torchlight Energy Resources Stock Appears To Be Significantly Overvaluedīecause Torchlight Energy Resources is significantly overvalued, the long-term return of its stock is likely to be much lower than its future business growth. Warning! GuruFocus has detected 8 Warning Signs with TRCH. GF Value for Torchlight Energy Resources is shown in the chart below. At its current price of $1.85 per share and the market cap of $268.8 million, Torchlight Energy Resources stock shows every sign of being significantly overvalued. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. The stock of Torchlight Energy Resources ( NAS:TRCH, 30-year Financials) is believed to be significantly overvalued, according to GuruFocus Value calculation.
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