We are continuing to cover what we feel is one of the few legitimate stocks getting involved with blockchain technology. This is a dividend-paying company that we originally started covering for our members for other reasons. We liked its valuation potential since it is currently trading well below its book value based on merits other than its new involvement with the technology.
In a playing field of pump and dumps riding the Bitcoin hype, it’s refreshing to see that some companies want to impart real shareholder value to investors through taking on real business opportunities.
Incredibly, the Company’s legacy assets alone are worth nearly 2.5X its current stock price. What the stock market has not fully caught onto is that it also owns blockchain assets through recent transactions; but we think investors will figure it out soon.
It has been a while since we talked about a stock we are buying. We’d rather focus on GeoInvesting’s strategies and educational material.
But we are experiencing a very special moment in the evolution of technology.
It’s fair to say that Bitcoin mania is here. Bitcoin (BTC) rallied to briefly touch $20,000 per coin, a 149,000% increase since 2013 when it became available on Coinbase.com. In the last 12 months, BTC is up over 2400%.
As is expected, similar to what occurred during the dot com era, certain companies are coming out of the woodworks with stories about shifting business plans, subsequently enjoying brief spikes in their stocks’ prices. This time around, it’s about the blockchain and bitcoin mining.
The buzz words included in press releases have been effective in pumping the stocks. However, it is clear from the everyday dialogue you might hear on TV (ahem, CNBC), or even amongst your friends, that only a select few can really explain in detail exactly what these buzz words mean.
- Bitcoin Mining (a mechanism to earn Bitcoins using servers)
- Crypto Currencies (The host of over 1000 digital currencies)
- The Blockchain (the foundation that drives crypto currencies)
Check out these insane price moves of companies that are using the hype to their advantage, but where many believe have little business plan merit and have characters marred in controversy:
- Riot Blockchain (NASDAQ:RIOT) — Overnight, changes focus from being a biotech company to a blockchain company with barely any revenue. Shares rise from around $7.00 to over $45 per share. Has ties to Barry Hoenig who some believe to be serial stock promoter.
- Marathon Patent Group (NASDAQ:MARA)– A intellectual assets company with mounds of losses that is placing bets in the Blockchain. Shares rise from around $3.00 to a high of $10.03. Has ties to Barry Hoenig who some believe to be serial stock promoter.
- Intercontinental Tech (Pink:RCGR) – A cigar company that now wants to mine for Bitcoin! Shares rise from around 8c to a high of 1.04 in one day.
- Digital Power (AMEX:DPW)– Recently announces its entry in the Blockchain. Shares rise from around 70c to a high of $5.95.
- Longfin Corp (NASDAQ:LFIN) — This company that just came public via a Reg-A listing announced that it acquired Ziddu.com, a blockchain-empowered global micro-lending solutions provider. Whether or not this is a legitimate synergy remains to be seen, but the stock saw a seemingly impossible run from $5.34 to a high of 142.82 in two trading days, getting halted multiple times on 12/18/2017.
Now, we are trying to imagine what would happen to shares of a substantial company investing in the future of the Blockchain. If you are interested in learning more about this idea, please accept our offer for a 7-day free trial, no strings attached.
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