Forum Merger II Warrants…and Why You Should Have Bought Them the First Day
I get emails all the time, “how did you know” the warrant was going to move. “Why did you buy” or “why did you sell it?” Why did I buy Forum Merger II (FMCI, FMCIW) warrants before the market even opened…something I rarely do…on May 14th.
Lean in close. I’m totally willing to share.
You see, I’m not “the super smart guy”.
And, I’d rather do as little work as I have to. I trade as a job, which has one purpose, and one purpose only. To make money as fast as possible.
It’s not to be brag about being right (who cares??), and not to show off to my friends that I bought Tesla three years ago because I know how to invest (I didn’t, and nobody cares if you happened to get lucky). Most of my friends don’t even know what I do.
I’d rather spend time reading, playing video games, walking the dog, hanging out with the kids (since they are constantly home now).
So how the heck does our little group make the warrant trades that win, seemingly over and over? We’ve had quite a streak the past few months.
VTIQW, owned at $0.53, and then loaded up at $0.80 pre-merger announcement (the announcement was telegraphed, did you see that pattern?). DKNGW, loaded up at $3 when it was still Diamond Eagle and trading as DEAC warrants. This was our number one warrant to own in the March Warrant Observer newsletter.
And, Esports Entertainment Group, GMBLW. We got the crew in Monday of this week (5/25). And had a pretty nice day yesterday, Friday, lol.
But, I digress, back to FMCIW.
The morning of May 14th (the merger was announced before the market open), I sent an email to my paid subscribers telling them I was buying Forum Merger II (FMCIW) before the open. You could have bought all you wanted at $0.90, and even a tiny bit lower after the open if you wanted.
Why? What’s the secret a not super smart lazy guy uses to do these trades????
It’s something they begin teaching in elementary school. Or is it kindergarten, been a while.
It’s patterns. Pure and simple.
Here is EXACTLY what I saw with FMCIW the morning of May 14th (wow, just 2 weeks ago).
First, I had watched VectoIQ (VTIQ) announce the acquisition of Nikola Motors in early March, and sold my warrants into the bounce. (I owned those before the announcement at $0.80, and lower.) Then, I saw the news start flowing…”VTIQ is the next Tesla”.
I had told my paid group what would likely happen once I saw this, which was way before the rip. And we got back into the VTIQ warrants.
I don’t care if Nikola ever actually becomes the next Tesla. I’m looking to trade and profit today, not when Nikola delivers its first truck two years from now.
And, if traders and investors believe its the next Tesla…well, you’ve seen what can happen with a quick glance at the VTIQ chart.
Remember, this wasn’t some secret known by only the Wall Street elite. Anyone could have bought VTIQW or VTIQ before the rip.
So, the morning of May 14th I see Forum Merger II announce they are purchasing an unnamed “plant based food” company. Let me think, had I heard of any plant based food companies recently…and how did they trade? Oh yeah, a little stock named Beyond Meat (BYND). Seems to be doing OK.
Do you see the pattern? VTIQ, the next Tesla…and away it went. FMCIW, the next Beyond Meat?? Up 36% in a few hours the morning of the 14th, not too shabby. And that was just the first day for FMCIW…
It was like owning VTIQW at $.80 before the acquisition announcement. Pattern.
The secret is just seeing the patterns. You can make a LOT of cake seeing the patterns. And it’s a lot more fun to own the warrants at $0.90 than the current $3.00, even if it does move higher from here.
Need help seeing the patterns? Check out our little group of warrant aficionados here: