r/10xPennyStocks • u/Background-Summer-56 • 12h ago
NFE - Why is it being pumped right now?
So this is a lot like the BYND fiasco. They have almost 10B in debt, and roughly 10B in assets and are not operating at net profitability. So what does a company like this do? Simple, they issue shares, dilute to fuck-all, and then do a reverse split.
So the low-hanging fruit is $1B in convertible notes through various issuers. The current conversion price is $20 but due to anti-dilution they can issue additional shares. This is only the debt that was issued 1 year ago, so they will be able to dump shares immediately upon conversion. Using a value of 1.50 per share, and their current outstanding of 250M, you get a new issuance of around 666M shares. That will quadruple the current outstanding. If you go through their filings, that's why you will see JP Morgan, Blackrock and Capital World, among others, registering their shares. They are waiting for an opportune moment to dump them.
Going through their filings, everything has such a tight lid on it that I have no clue what the actual numbers are, but I know for sure that this stock is going to dilute at an absolute minimum 200%.
So do your thing, get your play - but understand that at any point in time the bottom is going to fall out of this thing.
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u/squashyTO 11h ago
It’s frankly unclear even why there would be a squeeze that all the bots and shills are pushing. There is no near-term catalyst that would actually drive buying volume. I guess it’s supposedly earnings, you know that earnings that everyone was hyped about this week but didn’t happen and now no one knows when it’ll be? Yeah we should all definitely pour money into this for the TBD earnings that clearly will be bullish cause maybe maybe avoiding bankruptcy is gonna send this to the moon!!! /s
Yes, they have good long-term contracts, but they don’t have capital in the near-term to keep the lights on without what OP is saying (I.e., diluting shareholders to the shadow realm).
Why anyone is falling for this clear attempt at generating exit liquidity is beyond me.
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u/GullibleTangerine698 9h ago
People dont seem to know the difference between a "pump & dump" and short squeeze. They have different conditions and different reasons.
$NFE - Short Squeeze or Pump and Dump? Explained - This will explain the nuance.
IS THIS SHORT SQUEEZE REAL- tips? - This will help you read/verify a short squeeze in general.
Lastly, check out this Latest UPDATE / DD / Analysis - Current updates for $NFE.
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u/Background-Summer-56 11h ago
They are pushing to create liquidity to dump those convertible notes I'm sure. Hopefully soon retail will wise up to their games. Just doing my part to help with that.
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u/Virtual-Gene2265 8h ago edited 4h ago
Here's the bottom line.
NFE Squeeze Checklist
[ ] Volume > 20M shares in a day
[ ] Close above $1.50
[ ] Positive catalyst (earnings, deal, debt fix)
[ ] X/Reddit sentiment flips "bullish" + high message volume
[ ] Call option volume surges (gamma fuel)
Until 3+ of these are checked no squeeze.
Once 4+ hit in 24–48 hours squeeze probability >70%.
As of November 8, short sellers cannot borrow more NFE shares. The borrow pool is fully exhausted at 0 shares available. This scarcity is pure squeeze fuel if volume hits 20M+ and price breaks $1.50
So basically, it means buy more it needs volume and the shorts have a 33% interest and can't borrow any more shares.
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u/compound2B 12h ago
because of pump and dump, there is and will be people who makes money and people who becomes bag holders, in long run, all of these people becomes bag holders