Root9B Holdings Inc (NASDAQ:RTNB) Could Be A Quick Turnaround Day Trade

Pulling a profit from the smaller end of the markets doesn't have to always be about identifying as yet unrealized or unrepresented value. As many of the day traders reading this will corroborate, the market often throws up certain one-time, special event opportunities and these can be just as rewarding – if not more so – than a successful buy and hold.We like to keep an eye on things and alert our readers to these one-time events and we have managed to do just that on a number of occasions over the last 12 months. Here is one that just entered our radar and that we think could be well worth a look as action plays out over the coming 72 hours.The company in question is Root9B Holdings Inc (NASDAQ:RTNB).For those new to the stock, Root9B is a technology company that primarily operates in the cybersecurity space. It's headquartered in Colorado and has, at last count, around 154 employees at HQ. Operationally, Root9B is split into a couple of core areas of focus, including hardware and software sale and manufacture, and a consultation type offering that is set up to help individuals and businesses manage their varying cybersecurity requirements across a range of industries.During the first quarter 2017, revenues hit $2.31 million for a net loss of a little over $4.5 million. These numbers are down from the final quarter of 2016, with the company having reported revenues of $10.4 million and a net loss of $30 million during the quarter, and they are pretty much in line with the year-over-year variant, with the figures in question coming in at $2.03 million and $3.23 million respectively.Anyway, none of that is overly important right now.Root9B just alerted markets that the outcome of litigation rooted in some promissory notes has gone against the company and that foreclosure (along with an asset auction) is a possibility. Basically, Root9B needs to raise $10.6 million (for reference, current market cap is a little over $13 million) if it is to meet the demands of the litigation outcome. It probably can't do that without downsizing dramatically, so unless something unexpected happens, there's a good chance that that is the route that the company will take.So what is the play here?Well, during the session on Tuesday and immediately subsequent to the announcing of the potential asset auction and all that this brings with it, Root9B ran up to the tune of 236% before having its shares halted. The company closed out the day at just shy of three dollars a share having opened the week for less than one dollar.This move looks like something of a short squeeze and we think that there's probably a large base of shorts, some naked some not, that remain in the stock (and got caught in their positions subsequent to the trading halt) that will rush to exit during the session on Wednesday. As they cover, price is going to be forced higher and we should see a continuation of the squeeze that was cut short on Tuesday.This is not a long-term play, of course.We are looking at a near-term short squeeze and the inherent risk here is rooted in getting caught holding shares as and when the squeeze comes to an end. For anybody wanting a quick turnaround trade, however, and especially for anybody that's willing to take profits quickly as opposed to try and ride out the run to its peak, this one could be well worth a look.We will keep an eye on things as they mature throughout the session and update as appropriate when we see what the markets give us.We will be updating our subscribers as soon as we know more. For the latest updates on RTNB, sign up below!Image courtesy of Paul Downey via FlickrDisclosure: We have no position in RTNB and have not been compensated for this article.