The Preannouncement, One of the Most Powerful Catalysts, Ever. A Soliton $SOLY Case Study

Today was a massive day for Soliton $SOLY, a medial device company, closing up 61%.  This small cap company uses acoustic shockwave technology for tattoo removal, and hopefully one-day, to treat cellulite.

Here's the intraday chart for today.

$SOLY intraday chart on July 8th


Wow, right?! So what happened?

A sleepy press-release got more and more investors' attention and excitement as the day wore on.  The PR sleepy title is Soliton to Announce Cellulite Trial Data for 26-Week Period on July 15, 2019 (PR LINK)

First a little backstory.  Soliton's Rapid Acoustic Pulse (RAP) device is FDA approved for the use of tattoo removal.  RAP looks like a superior option to other forms of tattoo removal, needing only 2-3 office visits, as opposed to 10 or more office visits for the laser-only methods.  The tattoo removal industry is estimated to grow to approximately $4.8 billion by 2023, so that all sounds pretty good. 

But that is not where the big money is.  The company is looking to get their RAP device cleared for cellulite.  If this RAP device actually works to reduce cellulite, you can imagine that the TAM (total addressable market) is very, very, very large.

So today they announced that they are going to give an update on this 26-week period cellulite trial.  But not today, they are going to do it in one week from now.  This is what I like to call a pre-announcement, meaning that the company makes an announcement about an announcement that they are going to make in the future. 

An announcement of a announcement


As you can imagine, traders LOVE preannouncements.  It gets everyone the chance to buy today, and hold the stock for a week almost risk free while they tell all their friends and their friends' friends to buy.  Then even before the announcement, you can sell or sell half of your position if you don't want to gamble on the outcome of the announcement, for an almost certain gain on your investment.

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Comments

Nana Yaw posted -
Amazing article really enjoyed the content,  one of your best so far!
power to u.
Belo posted -
Very Good!

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