Multi-Bagger Potential For These Warrants Over The Next Year

Multi-Bagger Potential For These Warrants Over The Next Year

iot warrantsWe discovered what we fancy one of our best speculative plays in a long time. We see the potential for a ten-bagger in the cards over the next year. We are banking on being able to cash in on early winnings (plus some of our initial investment) and letting the rest ride.

This is a truly special situation surrounding an under-followed and complex merger. This leads to an information arbitrage (“InfoArb”) opportunity for us and our members until news breaks that we think will make other investors understand what we deduced from our analysis ahead of the market. One of our favorite InfoArb angles is investing in seemingly complex stories that become easy to understand.

We are not going to tell you this idea is a risk-free investment choice. In fact, it is a play for the hardcore risk-taker à la Jesse Livermore or Andre Kostolany who can think about the world in terms of probabilities. To be honest, it is an even coin flip. It’s either a total loss in the worst case, but at least 5-times your original investment with a win. This is not a pick for amateurs!

 

Asset Class – Warrants/Units

 

Industry – Hot Technology

catalyst50

Catalysts – Merger consummating will lead to instant re-valuation of warrants and units


Summary of Circumstances That Could Lead to Big Gains

  • The company is a shell in the process of acquiring a sexy, yet profitable, technology company.
  • The acquiree has impressive customers and stakeholders including Silicon Valley behemoths
  • After reviewing merger documents and analyzing process requirements, we feel the chances of a merger consummation are higher than what is implied by the the valuation of the publicly traded warrants.
  • The acquiree is conservatively valued in the transaction and has a good chance to get overpriced if its growth trend continues as a public company. The warrants that we are targeting have multiple years until expiration.
  • As always, we temper our analysis with caveats.  In the case that the transaction falls through the warrants will likely expire worthless.

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About the Author:

GeoInvesting is an investment research boutique in Skippack, Pennsylvania The GeoTeam's focus is on providing high quality stock market research tools and in-depth due diligence on U.S. small and micro-cap equities and on Chinese companies trading in China and the U.S. We research long and short ideas, and are the leading research boutique charged with helping investors navigate the treacherous China equity universe with a paramount goal toand protect portfolios from frauds. Numerous notable media outlets have credited GEO We have been credited with exposing numerous fraudulent companies in China. We have built a reputation in the US small and micro-cap space as champions of transparency. On the long side, we have also developed a , with a knack for picking stocks that have the propensity to get acquired at attractive premiums to their current prices will be acquired. Our team is currently comprised of 13 analysts and traders, and 7 on-the-ground researchers in Mainland China.

One Comment

  1. Mike May 3, 2017 at 8:44 pm - Reply

    Does Geo still like BWEN?

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