Just bought more. Stock is now oversold. Too good to pass...

Just bought more. Stock is now oversold. Too good to pass up.

Currently 0.32% of EHL is short sold so barely anyone is pessimistic. The day to day volume is low compared to previous quarters. IMO it seems like a few mid - large players are selling down for what ever reasons (risk, rebalancing, profit taking).

Another little theory I have (could be wrong) but if you are a nimble trader, it is much easier to capture larger price changes when the share price is restricted to larger proportional incremental movements. For example going from 10c to the next possible amount of 10.25c gives you 2.5% gain but if you consolidated 10:1 then the next possible price thereafter is $1.0025 which is a 0.25% change. So maybe a few players have exited their positions in search of other stock with better trading prospects as the stocks in the 10c - 40c range offer proportionally higher incremental gains.

But yep, I think this is a great buy.