$MGOL loading for potential 2x+ run and short squeeze — $300,000,000 valued reverse merger with Heidmar Inc to close by February 10th 2025

UPDATE: Title is likely optimistic. After further review there is enormously high risk involved in this play and it is highly speculative. I'll keep the post up but I've more than halved my position.

FOREWORD

I wrote 2 DDs for RVSN and SPRC previously, posting and calling them before they did their 400% and 200% runs respectively. Learning from RVSN, I won't be writing any follow-up posts for these stocks nor posting personal PTs, this is all up to you. I have realised that I'm not the best with trading and only good at finding the stocks before they do their first run!

Full report: https://docs.google.com/document/d/1sLQ6rFxoKHCZYJLsTInOzEunrNcdyCvkUEeXJqnK3IU/edit?usp=sharing

Please note that the below summary is very limited in scope. I strongly urge you to read the full report before entering as the play can be quite complicated and you may feel overexposed if you don't understand it completely. Make sure to do your own DD as well before making any decisions. The only other forum I posted this on is r/pennystocks.

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Provided by Montgolfier Stocks, see bottom of post for a little overview.

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SUMMARY

  • Thesis Summary: $MGOL is a stock that has been run to the ground over the past several weeks from $1 to just $0.10. This was caused following huge dilution involving the exercising of 42m warrants (diluting to 100m+ shares). As the stock is now at $0.10 (which is evidently the floor), it is grossly undervalued based on a company equity valuation of $18,000,000 compared to a market cap of $10,000,000.
  • Furthermore, the company will be entering a $300,000,000 value reverse merger with Heidmar Inc that is set to close by February 10th 2025, triggering catalyst-level news flow that may lead to a huge short squeeze.
  • As MGOL was also the most shorted stock on the NASDAQ over the past week, shorts will have to begin to cover as the stock is not dipping further and more merger news will be filed in the coming week (short-squeeze). The news will also trigger algos, thus triggering a major run-up.
  • Conservatively, I see at least 80% upside.

Breakdown

  • Merger target: Heidmar Inc. is entering a Business Combination Agreement (in a way a reverse merger) with MGOL. Heidmar has an equity valuation of $300,000,000, whilst MGO is currently trading at a market cap of $10,000,000. Consequently, news of the merger will trigger a huge run-up.When the merger plans were initially announced in May the SP ran from $2 to $18. I believe that an upside potential of at least 80% (assuming that MGO on its own reaches a fair value of $18m as independently valuated) is to be expected. It will likely be much more.
  • Institutional activity: Following an offering of $6,000,000 on the 23rd and 24th December 2024, three investment funds purchased positions in MGO Global Inc., for 921,000 shares each (or 9.99% of the float) – the purchase price on the date of their investments is estimated to be $0.40. 
  • Consequently, it is unlikely that these institutions purchased without thinking they will make a ROI, meaning that it could very well run past $0.40 (I won't be taking the risk and probably start selling past $0.25).

Company valuations:

  • Heidmar value: $300,000,000
  • MGOL value: $18,000,000 (currently trading at $10,000,000)

Heidmar financials (EOY 2023):

  • Revenue: $49,097,436
  • Net income (profitability): $19,639,297
  • Return-on-equity: 119.5%.

Disclaimer: This is not financial advice. Read my full DD before making any decisions. Always conduct your own due diligence as well before making any investment decisions. This stock is potentially very high risk.

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Addendum

I posted this on behalf of Montgolfier Stocks, a group I am trying to create that posts high-quality DD, sourced and fact-checked, that accurately informs investors of investment potential in undervalued stocks. There's always a lot of misinformation and misunderstanding in different companies and I hope we can address that through this community. No rocket emojis, no exaggerations - just the facts. Fully transparent as well, ask any questions about our holdings, intentions etc we will be completely honest.

If you are interested in following see the google docs for more info, it's free. Institutions shouldn't be the only people with high-quality research.