GEO Investing

As the cryptocurrency madness continues, this past week we have witnessed some insane moves in some “blockchain related” stocks.  Shares of Riot blockchainBlockchain Inc (NASDAQ:RIOT), Digital Power Corporation (AMEX:DPW), Xunlei Limited (NMS:XNET) and Marathon Patent Group Inc. (NASDAQ:MARA) have all surged well over 100%, and in some cases, 300% and 400% in a matter of days.  Even MGT Capital Investments’ (OTCQB:MGTI) cryptocurrency mining operation has brought the stock back into the mix.

Some of these stocks have their share of controversy.  RIOT, MARA and MGTI have next to zero revenue and ties to Barry Hoenig, who many believe is a pump and dump artist. DPW has investors with what some may deem to have had a questionable past. Just like when the dotcom era gave rise to pump and dump schemes, blockchain and bitcoin will do the same. We are already seeing an increased flow of blockchain headlines. For example, this morning we noticed this headline from ImmuDyne, Inc (OTCQB:IMMD):

“ImmuDyne, Inc. (OTCQB:IMMD) (“ImmuDyne” or the “Company”), a leader in the development and online marketing of OTC health and wellness products addressing large unmet needs, today announced that it has made  a strategic investment and now owns 1,000,000 common shares of Blockchain Industries, Inc. (OTCPK:OMGT).”

Omni Global Technologies (OTCPK:OMGT) closed at $14.20 on Friday, after rising from $0.13 just two weeks prior.  IMMD bought a stake of 1 million shares in OMGT, and we are looking further into this transaction. We have no idea where OMGT will trade in the coming days, but its current market cap of $14.2 million is near IMMD’s market cap of $17.6 million.

As cryptocurrency and blockchain technologies becomes more mainstream, we are on the lookout for legitimate companies that may benefit from this trend. For example, Gain Capital Holdings (NYSE:GCAP) just announced that it will offer bitcoin as a currency pair starting in Q4 2017 as the CBOE has released a new bitcoin derivative contract to begin trading in the coming weeks.

A Familiar Stock Raises Our Interest Level With Its New Blockchain Angle

Now, a company that is currently in our coverage universe is entering blockchain related activities. It already has a strong fundamental story, even if you exclude its blockchain angle. However, we do believe the stage could be set for the company to benefit tremendously as the public begins to discover this to be the case.  Stay tuned for an alert as we are preparing our extended analysis.

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