Oh man, that's disgusting. I love seeing that. I love seeing that i'll. Tell you that right now i expected a run-up.

I expected to run up when i posted this video, because i i saw there was a lot of hype surrounding the stock right now. I saw that i saw that there's a lot of people talking about it, but i did not expect it to jump to 0.0019. That is nasty. That's like a 100 gap from uh where we closed the the previous day.

So i hope you guys were able to get into this stock uh. When i put the video out, i did post this. I think one or two days ago - and i said hey guys - i really feel like this is gon na run up. We've got some good bases here for a reason to invest in this and sure enough.

We did so we're gon na give you a quick update. What is up, everybody welcome to trace trades, where we get technical analysis on different stocks in the stock market, as well as potential buy, hold or sell opinions on these given stocks. I can purpose by saying that i'm not a financial advisor nor expert so take what i say with a grain of salt. The reason i started this channel is because a couple years back, i was about 30 000 deep and some medical debt, and i was very fortunate to have some close family friends and mentors that push me to work hard and invest my money, and i am happy To say that not only my not financially free, but i'm doing pretty well for myself at the age of 23.

So if i can pass along the information, resources or tools that are given to me here in the community make a couple people better off than ever before. That's all that i can ask for. Lastly, when i'm dropping a like on the video, it really does help support the channel and consider subscribing if you'd like to see more content like this. Now today, like i said, we have an update on ticker symbol hcmc.

This is an otc market stock and i do want to be completely transparent and tell you you cannot buy this on weeble, so do keep that. In the back of your mind, i do not have a position in hcmc, i'm currently in the process of transferring over. My account from fidelity over to uh weeble and in my fidelity account i do have amc, bb, noke, clwd and snpw, so i do not have a reason to pump this to you guys. This is exactly how i see it, and i just want to give you the straight back, so we're going to cover this on the charts as best as we can, but, to be honest with you, the price action is a little bit ugly.

It's pretty bar code-ish, not a lot of good stuff here to say, but i will tell you why i expect this stock to run up and why it is important for you guys to look into this a little more deeply right. So uh, let's just get right into the video, so one thing that i want to show you guys is this lawsuit. We've got going on right now, so this lawsuit - let's just pull this up. This was actually posted, quite a while back on november 30th, 2020 and you're, probably thinking to yourself well.

Why is this all of a sudden taking off right if this was posted back on november 30th? 2020? Why would people start caring now? Well, that's the beauty of reddit, my friends, absolutely insane! So there's a there's, a penny stock thread on reddit in which people started talking about hcmc and they said hey. We saw this article from november 30th, saying hcmc is currently filing a lawsuit for patent infringement against philip morris. Now, let's just read a little bit of this article and give you guys an idea of what's happening here so hcmc, healthier choices. Management corporation today announced the filing of its patent infringement lawsuit against philip morris usa incorporated and philip moore's product's essay in connection with their product known and marketed as iqos.

The lawsuit was filed, the united states district court for the northern district of georgia. The international law firm, cozen o'connor, has been engaged to represent hcmc in this matter. Hcmc's lawsuit includes claims that philip morris is infringing their patent rights in connection with iqos. An alternative tobacco product marketed and sold by philip morris philomorm's philip morris claims that it is currently approaching 14 million users of its iqo's product and has reportedly invested over 3 billion dollars in their smokeless tobacco products.

Philip morris has been very open about their ongoing transition from traditional, fully combustible cigarettes to their modified risk. Tobacco products, including iqos, and this number guys is massive three billion dollars in our smokeless tobacco products and 14 million users of its iq os product. Now, let's check this out really quick just so you can see what it is iq os product, philip morris and just see if we can find anything regarding this. So this is what we're looking at.

This is the iqs product. This is the uh. What this looks like, i'm just going to back up and find you guys an image instead, but essentially it's just an easy. It's a it's a vape, vape pen.

Essentially so it's a smokeless tobacco product that that philip morris basically is infringing upon the patent rights of hcmc and they're, infringing upon so with two different ways. So the phil morris iqos product is currently the subject of two other patent infringement proceedings filed by rj reynolds tobacco company. One proceeding is before the international trade commission and seeks to stop the importation of the iqos product into the united states. The other is a patent infringement action currently currently pending in the eastern district of virginia rj.

Reynolds patents are unrelated and not affiliated with the patents asserted in the hcmc case, so these are not related patents to the hcmc case. We are pleased that, after a lengthy and careful analysis, a law firm with the patent litigation, reputation and strength of coz and o'connor will be enforcing our patent rights, said jeff holman, the ceo of hcmc. He concluded. We look forward to proving our allegations of infringement in this matter and intend to continue to move forward against any and all companies that infringe upon our intellectual property in both the tobacco and cannabis categories.

So that is what this looks like right now and what really catches my eye guys is this three billion dollars and there's smokeless tobacco products and the reason this catches. My eye is because if you look at their financials, let's look at their last annual revenue. The total revenue in 2019 was 15.11 million dollars and the gross profit was 6.48 million dollars, which is actually a little bit down down about 9.5 percent from the previous year. But if you look year-over-year guys, they don't see a lot of profit.

I mean they have been slowly growing. 782. 000. 3 million 5 million 6 million 7 million down a little bit this year right, but so they are growing as a company ever so slowly and 6.48 million in gross profit compared to three billion dollars.

Now, i'm not saying that they're gon na they're gon na get three billion dollars out of this. But if phillip morris is putting three billion dollars into the smokeless tobacco products, that's how much they have invested in their smokeless tobacco products and their iqos system is infringing upon the patent rights of hcmc. In my eyes, that should basically mean that they are entitled to a lot of financial compensation, and even if this is just a fraction of that, even if it's just let's say 500 million dollars right, their gross profit is 6.48 million dollars. So if you're just to do some quick math and let's just round this down to say five right, that means you're looking at a 100 times increase on their yearly revenue compared to what you've seen in the past and that's low balling.

If you say three billion dollars, you get where i'm going with this. That is absolutely madness. That is insane at this. In my last video i said this could easily 20x and i always love all my estimates guys, but in reality, in the harsh reality, this stock could vary very easily one thousand to 2000 x and i'm not kidding in the slice slightest bit um.

This could go from literally less than a cent to over a dollar, and that sounds insane, but you really need to understand three billion dollars compared to a 6.5 million dollar in gross profit is a huge, huge gap that is insane. That is a big deal, and one thing that was pointed out to me by multiple people is that this is expected to get reacted to by philip morris by february 26th. So we do have a date in the back of our minds that we do know leading into the stock um so that that lawsuit right. We are expecting something to happen by february 26th.

So now we've got a news date. We've got a catalyst, and i expect that now that more people are talking about hcmc you're, going to continue to see a slow and steady run-up on this stock leading into that date. So if you are able to purchase this this uh this stock right, i think you are able to do so on charles schwab, if you, if you use weeble right so if you set up a charles schwab, you will be able to buy into this stock um. I anticipate it's going to continue to run and we haven't seen a lot of price action in the past right.

It was pretty flat basically down at zero cents, but right now it looks extremely extremely bullish. We've got a huge gap right now between the 15 ma and the 200 ema, which are both indicators that i typically use on the charts uh the rsi not correcting very harshly at all the relative strength index, anything over 70s over a bot. Anything under 30 is oversold, and these two indicators right here are basically price, action-based valuation trend lines. The purple line of the ema is over a 200-day moving period and the 15 ma some brokerage accounts call this.

The sma is over a 15 day moving period. So this gives you both a macroscopic and microscopic perspective of the price action. If you look at this in the past, it was pretty flat, but now you can see there's a huge huge gap happening right now to see this jump on the 200 ema, as well as the 15 ma indicates to me that there's some extreme bullish momentum happening Right now, look at this volume guys now keep in mind. This is trading for less than a penny, but we saw 5 billion shares traded right at the bell on this stock in a five minute window, which is absolutely insane.

That's pretty filthy uh. It's it's crazy to see how much this has been taken off and if you were able to get into this, when i put that video out, i am so pumped for you guys, you're able to turn a profit. I know some people that honestly got into this back when it was trading at like point: zero, zero, zero. Two and if you got into point zero, zero, zero, two dude, there's, there's almost no downside for you at all.

The only way that you can go is up. That is how you make a a millionaire out of a thousand here. That's how you make a millionaire out of 100 here honestly um, it's insane! So what's a good entry point for this right, what what's uh? What's the game here? Well, let's just do a little bit of uh a little bit of pattern configuration. So what we're seeing right now is the last retracement.

We saw right the last run-up it pulled back to about 61.8 percent, pretty harsh pullback you're. Typically, looking for 50 is a good sign of strength, so if we follow that same trend in that same pattern which i'm not guaranteeing, you will happen, i'm just saying if this does happen. You're gon na see a pullback to about .0013 and this is a pretty nasty gap up guys, that's a that's a nasty gap up and typically when you see a gap up like that, the price action is eventually filled. So i do want you guys to be very careful getting into the stock before uh before you see some pullback, because you know you may miss out a little bit of a run-up right.

But if this drops from point zero, zero one nine down to just like point, zero, zero one right - that is a huge difference, you're looking at a big big big swing in price and that could crush your portfolio, so the cheaper you can get into this. The better off you're going to be and the more your upside is right, you're just going to be able to return more and your risk is going to be lower. So i think one of two things is likely to happen: either a we're gon na fill this gap right here this gap up in price action. You know we do have a small amount of price action here, but it's it's candle wicks, it's not very good.

Clean price action, so i think at the very least, you're gon na fill this spot right here, at least to these two zones, because we've got one candle touching here, one candlelight touching here and a candle touching here. So i find it very likely that we end up falling back into this price range somewhere. So if you see it pull back down between .0013 and .0014, i think that is likely to be a pretty solid entry point into the stock and if you see it bounce around a little bit, you know bounce here, bounce here bounce here. At that point, i feel pretty comfortable buying into the stock, and i think you will do extremely well as far as exit points go.

I think the best opportunity here is going to be as a short-term hold, i would say, hold this for at least you know a couple of weeks, leading into that february, 26th date uh for the lawsuit. I will cover this on the channel as regularly as i can give you guys, some updates on what everything's looking like, but i'll tell you what they win that lawsuit. This stock is gon na, go absolutely insane. It's gon na be filthy disgusting.

Disgusting filthy, like i can't even i can't even tell you how gross that's gon na be if they see the full three billion dollars in compensation that uh philip morris has invested in their product. Infringing upon this patent, i mean you, are you can see the math. You can see the math 6.48 million in gross profit for hcmc in the last year 2019. That would be insane.

That would be absolutely insane and you would see an increase in share price, like you probably have never seen in your portfolio in your entire life. So that is what i've got for the video today guys if you enjoyed it, please drop a like. It really does help support the channel and consider subscribing if you like, to see more content like this. And lastly, i'm going to fill in the description box down below for weeble weeble is a brokerage platform that allows you to trade in the pre-market starting at 4am, and if you use my link to get four free stocks with 100 deposit i'll receive a free stock.

Great way to support the channel and if you're not interested, that's totally fine. My friends, i promise you, i'm just glad you're taking the time to watch my videos, so that is what i've got for you guys today. Thank you for watching my friends and i'll see you all next time. Peace,.

.