Vislink's $VISL 300% Gap Up, and What Most Traders Were Thinking

Vislink has a completely wild day as this nano cap worth only $3.6 million got a $2.8 million contract with the U. S. Army today, gapping stock up 300% before it came crashing down to close at only +150%.   Here's the chart:

intraday chart of Vislink $VISL and its 300% gap up


Vislink makes communication devices, think walkie-talkies and wireless video transmitters.  They have been working with the military for some time, and today announced a $2.8 million order from the U. S. Army. 

But for all intents-and-purposes, this is a non-event.  The company brings in revenues of about $37 million, so adding another $3 million is not really going to move the needle, especially considering the company has $9 million in debt.

Traders, however, wanted something to chase after the spectacular move in Oil & Gas company Camber Energy $CEI which ran bell-to-bell over 200% on also a non-event news item.  Here's what happened to $CEI yesterday.

Intraday chart of Camber Energy $CEI


[For more details on what happened to CEI yesterday check out yesterday's article]

So it was not surprising that most traders on Twitter were trading and betting short.  Some sentiment from @GuyGentile

$VICL sentiment from @guygentile



Personally, I thought the stock would fall immediately out of the open and fade all day.  It didn't.  Here's an example of @KaracoCapital playing it safe, with great execution.


Trade executions from @KaracoCapital


In future articles, we'll go over some more properties of penny stocks gapping up over 100%.  Stay tuned.

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Comments

TradingForFreedom posted -
Thanks for the recap and additional color on the US Army contract 

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