LPTH, BIOL, AYRO (See desc. for full list) – Microcap Rodeo Winter Wonderland

Full List of publicly traded companies presenting or with a booth: ACON, ARTL*, ASRT, IONM, AUUD*, AUGX, AYRO, BFRI, BIOL, CMPO, DTST, DPSI, DRCT, DLPN, ETON, EVOJ, FAR, GNSS, GNE, GUER, HGBL, INLX, LPTH, MGAM, MITQ, NMRD, OCUP, OMQS, PYR, SIDU, EDT, STAF, STRM, SURG, TTI, IDAI, YTEN

The MicroCap Rodeo can be quite the Catalyst for the companies involved.  These are companies that have a small market cap, and are usually much quieter on the PR front than a lot of other companies.  So, attending the event gives the companies a chance to release PR of their own, and benefit from any articles or PR driven from the event itself.

Secondly, many companies attend and have booths or presentations.  Each company likely draws it’s own group of attendees, and then there are many attendees that are there for general purposes.  Once they are all there as a group, every single company has an audience made up of majority non-shareholders.  As in, most these people attending the event who are looking for the next best thing to invest in do not already own shares of most of the companies.  If one company has a very persuasive presentation or booth, a lot of people may opt to whip out their phones and make a purchase right there.  This would have a short term effect on the stock price [this is key, if it is a sudden price hike dur to volume in reaction to a presentation, it is likely that the price hike will sell right back down], which is why a lot of “Runup” traders become “Runup and Event” traders for an event like this.

Runup Traders, who are trying to buy the rumor and sell the news, will have gotten in during the weeks leading up to the event at a sign of a technical bullish trend.  If the profits from the “runup” period don’t satisfy the trader, they may opt to hold and wait to see that sudden volume pop.

HOWEVER, just like traders want to buy low and sell high, so do companies.  If a company has a cash need, and this catalyst sends their stock price higher than expected, they are almost obligated to make an offering and raise money on the inflated stock price.  The reason I say “almost obligate” so because they are obligated to act in the interest of longterm shareholders.  If they definitely need to raise money by doing an offering (diluting shares), the interest of long term shareholders is to do it with the smallest dilution possible.  If the stock price pops 100%, suddenly a company can raise the same amount of money with half as many shares.  So, “Event” traders probably want to be careful to avoid the “Afterglow” unless the companies they are trading after the event have plenty of cash and generated real buzz from their presentation.

In the case of MicroCap Rodeo, most of the time there is nothing new in any of the presentations.  Companies definitely talk themselves up, but they are not bringing new products out or singing new contracts at this event usually.

Link to Event Website: https://microcaprodeo.com/components/27315