LMFALM Funding America, Inc. (LMFA) had good volume and a big bullish candlestick on Friday. Breakout watch over 4.98
LMFA
2nd Day Testing Fib Resistance On LMFALMFA has some pretty well established levels if you look beyond that one big spike earlier this year. With the 786 fib line showing to be a strong pivot, the stock has stalled twice now, failing to hold above this level. It was strongly denied this week and looks like the follow-through momentum just isn't there to finish out the week. However, bigger picture the stock is still significantly higher than where it was in late May .
Remember what Bruce said in that first ER:
“Revenues from our community association receivables business declined as we continue to develop a digital asset technology strategy to unlock the potential of this business...We expanded our core business of buying discounted debt and collecting it through court proceedings with the Borqs transaction. We entered the Borqs transaction projecting to net $2 million and we were pleased to realize a $5.7 million return.”
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short term +800%LM Funding America, Inc., through its subsidiary, LM Funding, LLC, operates as a specialty finance company.
KEEPING IT SIMPLE $SNDL POSED FOR 135% UPSIDE.Check out my previous analysis on TLRY, same idea. More legalization talks around cannabis this year with Democratic majorities in the U.S government. Potential buyout here as well.
$LMFA Receives a take over offer and $1.25M in cash for Nov 2020To complete the transaction by November 2020
sec.report
Fresh funds from Craven House to conduct business giving it $6M more in cash for its regular operations:
sec.report
This is what book value feels like before a major take over:
sec.report
Call Broker To Get Shares If They Are AvailableBest to do it today. Stock never follows through, but it has a low float and most of the shares are owned by insiders. They constantly lose money and are late on earnings reports frequently. I see another reverse split coming soon as they have most likely received a warning from the NASDAQ for being under the minimum $1.00 price requirement.
Buy `1/2 today just be safe then follow through once the volume dries up tomorrow
$LMFA OThe Technicals -
A clear divergence of the OBV and Price Action , which preludes growing buyer volume and long position sentiment.
Earlier last week, $LMFA hit all time-lows with its bottom at 5 cents above the half dollar. Although we have a considerable amount of selling to break past, I would anticipate the larger corrective retest to occur at the 1.414/1.618 extension, throw some impulse/corrective waves on that bad boy and leg it up.
The Fundamentals -
Domestic based capital financing/lending company serving the nonprofit sector - overall a safer alternative to other loan portfolios, especially amid the turbulence of global trade and the increasing value of real estate and real-estate development. Recently secured a partnership which appears to have expedited what was already anticipated last week in terms of Price Action . Have not yet read up on these developments (tend to not pay attention to news) but from what I hear, seems to have stirred up investor interest.
LFMA, Strong Share Structure and Investor SentimentCollections agency. Strong share structure, something to keep your eye on. Low floater, gets traded. Not a long term hold due to the risks involved, and they haven't turned a profit yet. Nice day trade swing trade potential, and investors seem to believe in it based on the fact that they agreed to end the pricing period early.
