Ah man come on. I really like this company. I wish i didn't have to give this news guys god dang it well. It is what it is.

What is up? Everybody welcome to trades trades. We get technical analysis and different stocks in the stock market, as well as potential buy holders sell opinions on these. Given stocks, i like your preference by saying that i'm not a financial advisor nor expert so take what i say with a grain of salt. Let's get into the video today we're gon na be looking at ticker symbol, v-y-n-e vine therapeutics, my friends.

I have been asked by quite a few people to cover this, because i think some people are panicked. A little bit worried and uh we've got some uh. We've got some news: some news to talk about so uh we're gon na look at the fundamentals of the company right, the why to be completely transparent. I don't presently have a position in vine right.

I always want to tell you guys how it is. I don't want to pump or dump right uh, i'm just getting the information straight, as i see it to help you guys out as much as i can so uh with that being said, i'll show you really quick. These are my positions currently on my my weeble account. I am in the amc.

Fight still sends down just a hair whammy down just a hair right. I did just establish these positions and then i do have a couple of calls on agtc, which actually i've been doing. Uh pretty well pretty. Well, it's up to about uh, six dollars and uh 38 cents right now, but that's not important anyways.

I don't currently have a position in vine to be completely transparent and um. I've got i've, got no reason to pump this. So what do they come? What does the company do? What's the, why right we're gon na go over that we're? Looking at some recent news, uh some financial statements right so just look at the the fundamentals. What is what is important right? We've got this.

This huge overlying uh one to four reverse split, which has got a lot of people freaking out, and we got to just clear the air here for people out there who are wondering and then we'll get to the meat potatoes of the chart. In case you do decide to continue investing in this company and you're. Looking for a good entry point, so we'll get this on the one month chart as well as the one day one minute chart to get both a macroscopic and microscopic perspective of the price action right. I've got a couple.

Different indicators pulled up the rsi, which is the relative strength index, anything over 70's overbought. Anything under 30 is oversold. Then we've got the 200 ema and the 15 day m. A the 200 damage is purple trend line.

That is the exponential moving average. This is a price action based valuation trend line over a 200-day moving period, and then we've got the 15-day ma, which is the moving average. Some brokerage accounts call this the sma, the simple moving average. They are one in the same, and this is a price action based valuation trendline over a 15 day moving period, which gives us a microscopic perspective of price action.

We use both of these indicators side by side, so we can predict upcoming, breakouts and upcoming pullbacks and uh. Unfortunately, we are on our way to an upcoming pullback and we will get into this in just a minute, so uh we're looking at some potential entry points. If you are looking to establish a position in vine uh, we got a lot to talk about, so let's just get into the video. So what does this company do? What is the why mental therapeutics is a biopharmaceutical company? The company is focused on the development and commercialization of seropotent for the treatment of paritis associated with dermatological conditions such as atopic dermatitis, psoriasis and perigol nodularis.

The company is focused on developing and uh commercializing, a variety of solutions using its molecule stabilizing technology mst. The company has a commercial stage, product am zeek and several late stage product candidates. It is also evaluating the use of celebrity for the treatment of refractory chronic cough. The company's tolapatine is a small molecule, highly selective and k1r antagonist.

It is developing astrology as a once daily oral tablet therapy. We check out their website really quick, we're just going to pull this up for you and we can take a peek at what they are. I mean vine therapeutics is working to solve some of today's most difficult therapeutic challenges with every problem we take on our approach is the same uh question traditional assumptions and find a better solution. So they've got this mstm molecule stabilizing technology learn about the technology uh.

That is foundational to vine innovations right uh. If we want to look at their pipeline, we can take a peek at some of the different products that they have they've got amzek, which was already fda, approved, silk. She, which was also fda, approved and the fcd-105 foam which has been approved for phase two uh. So we are waiting for that phase three and fda approval on that fds, fcd, 105 foam, and if we do want to take a peek at what that is right, we can come down here to the fcd105 and take a peek.

So it works with this acne vulgaris right, which is a medical condition that causes this sort of acne right and scd-105 is a proprietary three percent monocycline point: three percent adipolene combination, foam formulation under investigation for the treatment of moderate to severe acne vulgaris uh fcd-105 combines The bacteriostatic and anti-inflammatory properties of monocycline with the third generation retinoid adipolene, which acts in regulating man, i'm so sick of saying these freaking huge words. It's so hard anyways, which acts in regulating the differentiation of follicular epithelial cells, oral menocycline and topical adaptolene products are approved for use in the treatment of acne vulgaris in the united states. So they've got the three week and three month, thermal toxicity, completed they've got the positive phase. Two study top line results reported in q2 and they've got phase three programs to start at uh one age of 2021., so some pretty good products they've got good things in the works.

It seems like a pretty solid company at first glance and if you look at their investor overview right, look at the recent press releases. They do have this, and this is ugly. I don't like seeing i never ever. No investor like seeing reverse stock split we're just going to read this quick and i'll.

Give you my two cents on what this means right. So, let's read this: article vine therapeutics today announced that his board of directors has approved a reverse stock split of the company's common stock at a ratio of one for four. The reverse stocks was previously approved by stockholders at the annual meeting of stockholders held on august 3rd 2020, and just because it wasn't approved doesn't mean that it needs to be exercised right. So it was approved back in august 3rd of 2020 and they decided not to exercise this until now.

Okay, vines common stock will begin trading on a split adjusted basis on the nasdaq at the market, open on february 16, 2021. once effective. The reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 205 million to approximately 51 million. So if you own four shares they become one share.

One share right now is trading at what appears to be about two dollars and fifty five cents, so your four shares of 255 would become one share at about 10 bucks. That is how a four to one reverse stock split works. No fractional shares will be issued as a result of the reverse stock split in lieu thereof, the company's transfer agent will aggregate all fractional shares and sell them as soon as practicable after the effective time. At the then prevailing prices on the open market after the transfer, agent's, completion of such sale, stockholders, who would have been entitled to a fractional share as a result of the reverse stock split, will instead receive a cash payment from the transfer agent in an amount equal To their respective pro rate of share of the total proceeds of their sale, so if you don't have uh four multiples of your shares, right, you're just going to receive cash and compensation for the extra shares that you owned.

The primary objective of the reverse stock split is reduced. The number of shares outstanding to a number more consistent with other companies with similar market capitalizations as vine as further described in the company's last proxy statement. So the reasoning that most companies get a reverse stock split right is because they're worried about maintaining nasdaq compliance and that wasn't an issue with vine. So i think a lot of people are kind of blindsided by this we're trading at 2.55.

What's the what's the worry about you know, holding up that one dollar mark you know, so i think some people are freaked out. That's because usually a reverse stock split is a sign of weakness in a company. It indicates that the company's uh management team does not think they're gon na be able to maintain that compliance, but they say right here in this statement right. The primary objective of the reverse stock split is to reduce the number of shares outstanding to a number more consistent with other companies with similar market caps.

As vine, the trading symbol for the company stock uh will remain as vine. The new q7 number for the company's common stock following reverse stock split is 92941v209, so that is what the the reasoning behind the reverse stock split was, and you are seeing a massive massive sell-off because of this, i think people are really really freaking out. They went from 3.23 down to about 255, literally stair-stepping uh, lower lows and lower highs, which is not what you want to see whatsoever in a in a stock, regardless of why they did it right. It's important to recognize why a company did something, but just because they had good intentions right.

They wanted the similar amount of shares, as other other companies with similar market caps right. That doesn't necessarily mean it's going to be received well, and it's not being received well at the moment and that's the truth. So, oh shoot! What do you do here? What do you do here? Well, i don't have a position. We're gon na look at their overall annual revenue first before we get into that right and their gross profit.

They do not have any. They have. They've got no gross profit as of now um their overall revenue. They had none as compared to 2018, which is a 100 decrease right, um, assuming because they are working on some different products that they have in the pipeline.

That would be my reasoning, but take that for what it is, i'm not a financial advisor. That is just my personal opinion. So, with this being said, what should you do if you have a position in vine? Are you looking to establish a position in vine? Personally, i'm gon na watch this from the sidelines. I uh.

I don't like unpredictability a whole lot and, as we've seen right now with this reverse stock split, even though the company had good intentions right the public, the sentiment of the public right now, the retail investor does not appear to be that good right. I'm gon na be interested to see what their institutional ownership looks like if that has changed at all, and we can just take a quick peek just by the off chance that it has um. So this vine institutional ownership. Last time i tried typing this, i couldn't get it to save my life, so we're just gon na take a peek on fintel.

This is usually updated pretty frequently and as it sits right now, um you can see that janus uh henderson group plc now has zero. Current shares and zero percent ownership, which i would assume, is a pretty drastic update. Now i don't know what they previously had before that, but that is a. I don't know why they would report this on this 13g if they did not previously have a stake.

So janus got out, they got out. They did not like that at all blackrock, previously uh uh, as of you know, february 2nd, had a stake of about 7.1 and almost 12 million total shares in vine. So that's that's a pretty good stake. I'm going to be interested to see if other companies decide to follow suit with janice henderson group plc right um, because if they do, you want to follow big money and if big money gets out of this play, i hate to say it.

I really do, but that would mean to me this is probably something you might want to come back to at a later date. Uh i'm gon na stay out of this. I'm gon na stay out of it, but if you are considering establishing a position right, you want to get into this one. It's super super cheap right can remember that whatever you're buying right now, it's gon na multiply by four.

Your four shares will become one and you'll you'll be holding this at 255 instead of about ten dollars and uh 10 cents, or so. If i did my math right, i'm not a great math guy. I think it's 10 20, but regardless the charts right now, we are about to have the 15 15ma crossback under the 200 ema, which is a sign of an upcoming bearish run right. We are.

This is absolutely disgusting, stair stepping down that is uh, that's about as bad as it can possibly get to be honest with you volume, not great, it is down a little bit. We saw a little bit of a push here in green volume at the at the open yesterday, but since it's just been a slow bleed, these bleeders suck my friends because you don't know what to do. It's almost better for a stock to just immediately sell off, because then you know to get out right, but when it bleeds like this, you just have that hope. You just hang on to hope.

You're, like man, man, maybe maybe uh, maybe trader sentiment, will change, but i i don't know the risk seems very high to me with vine. At this point, i was very bullish on vine before um and i might be here in the future again right, but as of now, i think it's it's a little more safe to sit this out on the sidelines until you see how people react when this does Come out as a 401 reverse split right, um! So keep that in the back of your mind, about to answer a bearish run on the rsi sitting at 30. So pretty oversold a lot of selling pressure, a lot of selling momentum. There actually seems to be some shorting opportunities here.

I would say: i'm not personally going to short this. I don't short companies right, but if you are interested in doing so, it does appear that that is the overall momentum and you do have the 15 ma crossing underneath the 200 ema. Here it's in a very clean downward moving channel right now we always look for three touch points. We indeed do have that right.

We've got one two three different touch points and we have a descending level of uh support as well. So you can see this right here. Three uh three touch points, one two, three, four five right. In order to break out of this, we need to break above this descending level of resistance.

So is it a harsh downward moving channel? My friends that looks pretty rough as far as an entry point goes. We do know that we have. You know a fallback position right around here, but that's a ways down. That's a that's a pretty harsh, harsh ways down and from there you know we maybe have another another uh fallback position right about here at about two dollars and 39 cents with one.

We always look for three touch points. Remember that uh one touch point two. Three. Four um: five, six, seven, eight nine different touch points here, so that is another validated level of support right.

So we know that we've got 2.39 and a 1.98, it's tough to say if it's gon na fall all the way down to there. You know today and then come come. The next market open right, which would be. I think, if i remember right, february 16th um, it's gon na be a four to one, so it'll end up being whatever the price is at the end of the day.

Today times four - and it makes it very very - they may very well i'll continue to bleed after that. So keep that in the back of your mind, that's how the chart setup looks right now, if you're looking for an entry point, i think the safest one. It's gon na be 1.98 right, but it may it may bounce here, it's gon na depend if you see a wide range candle bounce off of this level of support right uh. That would to me indicate that you found the bottom at least for now, but uh that is gon na look like this.

This is a wide range candle. So if you see it come down here and test test this level of uh support, you see a drop down right and you follow this up with a small candle like this. That to me does not indicate that we have. We found the bottom.

I would look for a hard bounce with that wide range candle where you see it come up like this and either match it or come very close to the previous candle right. The one hour candle that to me is going to indicate that you've probably found the bottom, at least for now, but as i stated before my friends, i do think there's a lot more risk involved with vine than there was previously. I am not personally going to be taking a position in this until i can watch this from the sidelines for a little while i am 100 content missing out on a run if it does end up happening um, just because the risk involved with a reverse split. So i want to give you guys a quick update wanted to give you guys the the chart setup if you were interested in hopping into this regardless uh.

If we look at this on the one day, one minute chart really quick, i'm just going to delete everything that we have up here. So we can uh keep this nice and clean better, go back and check that out. You can do so just rely on the video and pause it, but you guys can see this uh pretty pretty plain and simple. This isn't a nice disgusting uh disgusting not even a good way in a bad way, uh bad downward moving channel.

So it's just setting lower lows: lower highs, choppy price action here in the pre market, typically indicating there's not a lot of volume, not a lot of volumes, there's probably not a lot of interest, so that is currently where vine is sitting. My friends, i hate that i have to break it to you, but i uh that was not my radar. I was not on my radar. I did not think that vine was going to exercise a reverse split, so that was what i have for the video today.

My friends, i hope you enjoyed - please drop a like if you did really does help support the channel and consider subscribing if you want to see more content like this. Lastly, i have a fill link in the description box down below for weeble. Weeble is the brokerage platform you're watching me use right now. This is version four for the desktop.

If you use my link, you get two free stocks with a 100 deposit, i receive a free stock grab to support the channel, my friends and, if you're, not interested. That's totally fine. I just appreciate your support by taking the time to watch my videos, so that is what i have for you guys today. Thank you for watching my friends and i'll see you all next time.

Peace.