I just received an email from a HUMBL stock reader. Someone had told him he had taken a huge dive but was going to go up. Normally I don’t trade shares over-the-counter, but I thought I would take a look. So, is Humbl stock worth buying?
The short answer is that HUMBL stock is not worth buying right now. The stock fell from a 52 week high to 7.72 and is now trading at $ 0.92. Most investors would find this stock too risky and this does not indicate a trend reversal or a return in value of the previous stock.
Before I begin, I would like to point out that upon the merger with HUMBL Inc. in December 2020, Tesoro Enterprises (ticker symbol TSNPD) received approval from the Financial Industry Regulatory Authority (FINRA) to change its name to HUMBL Inc. So if you were wondering what happened to TSNSPD, then now you know it.
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Reverse stock split and its ramifications
The merger resulted in a reverse split of the share. What does this mean for investors?
The reverse division was performed in the ratio of 1: 4. In other words, four actions become one. If you owned 100 shares before the consolidation, you now own 25. However, the value of your investment remains unchanged except for regular price movement. The stock which was trading at $ 0.85 before the split is now trading in the $ 3 to $ 4 range, sometimes reaching $ 5. The reverse split ratio reflects the value of the stock based on the value of the combined entity. Unfortunately, the stock has since slumped and is currently trading at $ 0.92!
This split has caused some confusion among investors. Originally, the assigned symbol was TSNP, which became TSNPD when HUMBL Inc. added an additional letter in the symbol.
One of the immediate results of this acquisition and reverse stock split was a substantial increase in HUMBL’s trading volumes. It is not uncommon for companies to use such tactics, known as “price inflation,” to make the stock attractive to investors. This helps to remove the label from a “penny stock” which, due to its association with higher risk, is on the no-go list of many investors. This is especially true for OTC stocks, stocks traded over-the-counter and not on any of the major exchanges.
What can investors expect?
HUMBL announced the acquisition of Tickeri Inc. In the wake of its acquisition of Tesoro, it demonstrates the success of HUMBL’s strategy and its appetite for growth through acquisitions.
As there could be price inflation resulting from recent acquisitions and mergers, based on the long-term outlook, investors would be well advised to enter HUMBL should prices fall. Since this is an OTC share, you will need to go through one of the top brokers like E-Trade, TD Ameritrade, Schwab or Fidelity. You will not be able to trade over-the-counter through trading apps like Robinhood.
HUMBL stock forecast
From the floor and wall coverings originally offered by Tesoro, the HUMBL product set is a radical change. HUMBL’s diverse offerings give it the opportunity to succeed in a number of ways. HUMBL Financial and HUMBL Pay – a competitor of Square, give it a place on the high table of fintech. He also has plans for blockchain technology.
Between the 1st from December 2020 and 1st from February 2021, its stock has appreciated by 132%. This was followed by a gain of 332.91% in the following week alone. If it has more acquisitions up its sleeve, HUMBL could experience an extended rally. While prices are down 45% from that high now, it’s a stock to watch.
… ..And then fell like a set of car keys to $ 0.92!
However, at this time, little is known about her long-term plans and how she will leverage the brand which has several growth engines working for it. A definitive purchase recommendation can only come once it is known.