Insignia Systems, Inc. (NASDAQ: ISIG) is making a run for the top in the market this morning. However, if you’re digging for press releases, you’re not going to find anything. The catalyst in today’s run seems to be an SEC filing surrounding the acquisition of beneficial ownership.
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ISIG Stock Climbs on SEC Filing
In the filing, investors learned that two entities have purchased a large stake in Insignia Systems. According to the release, the following transactions have recently taken place:
- Cable Car Capital LLC. According to the filing, Cable Car Capital LLC acquired 610,000 shares of ISIG stock, representing a 4.99% beneficial ownership.
- The Funicular Fund, LP. According to the filing, The Funicular Fund acquired 585,000 shares of ISIG stock, representing a 4.79% beneficial ownership.
So, what’s the big deal? Why are these transactions sending ISIG stock for the top?
There are two reasons that we’re seeing the dramatic gains:
- Follow the Money. The retail investing community is known for following big money. After all, investors will millions of dollars to drop spend much more time analyzing the market and generally have a better understanding of what akes a good investment. So, with big money investors droping loads of cash on Insignia Systems stock, it’s not surprising to see that retail investors are following in their footsteps.
- Tiny Float. ISIG stock has a tiny public float of under 8 million shares. This is like winding up a spring and letting it go when something good happens. With such few shares available to the public, when good news increases demand for shares, supply simply can’t keep up. As a result, we tend to see skyrocketing prices. That seems to be the case with ISIG today.
The Bottom Line
The bottom line here is simple. While Insignia Systems didn’t release any news of its own this morning, it didn’t have to. The SEC filing showing that large stakes were purchased by two smart money firms, excitement led to buying. With such a small float, this buying is leading to a dramatic increas in the price of the stock. Considering the fact that the float is so small and there is positive news acting as a catalyst for the run, there could be plenty more room for gains in ISIG stock ahead.
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