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What Analysts Got Wrong about the Recent Volatility.Since I'm not a professional analyst, I've sunk many hours of research in the past week to understand the recent move in the market on a deeper level. Here are my findings. I hope you find this informative. I've been hearing different analysts' opinions about the recent move in the stock market. I heard the money is moving from tech stocks to banks, or from growth stocks to value stocks. I'm here to say that neither is true. NASDAQ:GOOG is a tech stock and it's been rising. NASDAQ:COST is a value stock and it's been falling. Observe different stocks and you'll find numerous examples. The recent move is rather about companies in debt vs companies with free cash flow . It turns out that when interest rates are raised, it can be predicted with certainty that more money is going to flow into servicing existing debt rather than into productivity. Watch this talk with Brent Johnson to understand this concept, minute 50 to 60. Banks, who recently had their debts quantitatively eased, have more room to buy corporate bonds from companies like GM and Ford. This debt is used to service older debt. The big money, which understands this debt-based economy well, knows precisely where value is going when interest rates rise. Big money used their tried-and-tested calculations and decided to move their investments from free-cash-flow companies, to debt-generating companies. That's what's been happening, and that's the reasoning behind it. However, there is a point the smart money is missing and they keep missing it and never learn. There is much more value to reap from technology and innovation than there is in loan interests. This value of tech is not priced into their tried-and-tested calculations. It's probably too uncertain for them. But realize that when companies like Amazon, Apple, Google, Facebook, and Tesla create value through technology, they are carrying the rest of the useless debt-generating economy on their backs and creating prosperity for the entire nation and for the world. Real value is in productivity. The United States has moved slowly after WW2 from an industrial exporter to a liquidity and debt exporter of sorts, which also reflected on the US's internal economy. And that weakened the industrial sector over the decades and bubbled the financial sector to an overwhelming extent that it's sucking more and more money from productive businesses and pouring it into existing debts with the purpose of buying more time. The retail investor should learn and understand this in order to position themselves with high conviction on the side of technology and simply hold stocks like Tesla for a decade. You are already benefiting the economy by saving money aside and putting it in the right place and of course the reward is high. Let me know your thoughts. I probably made mistakes and left some statements in need of more elaboration.
SP:SPX
by TechNerdOmar
4
TITAN - 5G - Lumen Tech. $LUMN - The 4th Industrial RevolutionI am ultra bullish on Smart cities, AI, edge computing, 5G/6G telecommunications, cybersecurity and AR/VR. Lumen Technologies (CenturyLink) seems to be a sleeping giant that checks all those boxes. Lumen is facing a similar situation as Nokia and Blackberry as value company which is about to enter a second growth cycle, and like Palantir Technologies, it is facing a situation of massive short selling pressure during institutional accumulation. The ruthless manipulation after earnings beat signals to me how bullish institutions are on the company, and the overwhelming (unreasonable) bear sentiment signals that the shakeout is upon us. FA: Highlights: "Lumen Technologies is the only company to win Frost & Sullivan's prestigious 2021 Global New Product Innovation Award". Who are they? - "Lumen brings together the talent, experience, infrastructure and capabilities of CenturyLink, Level 3 and 25+ other technology companies to create a new kind of company—one designed specifically to address the dynamic data and application needs of the 4th Industrial Revolution." - Company website. - Already is the global leader for fiber network. Lumen has the largest ultra-low-loss fiber network in North America with 3.5 million miles of high-capacity. - Owns the world’s most-connected CDN (Content Delivery Network). What do they do? - "Lumen is an enterprise technology platform that enables companies to capitalize on emerging applications and power the 4th Industrial Revolution". They are focused on the 5G/6G sector, which I speculate will see explosive growth soon. - "We integrate network assets, cloud connectivity, security solutions and voice and collaboration tools into one platform that enables businesses to leverage their data and adopt next-generation technologies." - Focused rebranding for edge computing solutions and 5G sector. - Lumen has partnered with VMware to develop cybersecurity software: Distributed Denial of Service (DDoS) Mitigation, Web Application Firewall (WAF), Bot Risk Management (BRM). - Black Lotus Labs is their threat research arm, the world’s most deeply peered networks and industry-leading endpoint protection and datacenter virtualization. Key Products: - Premises Edge: Tactile Internet, Virtual reality, Augmented reality. - Metro Edge: Smart manufacturing, Video analytics, POS transactions, Retail robotics, IoT. - Cloud Core: AI/ML platforms, Big data analytics, Disaster recovery, SaaS, Cloud storage, Hyperscale environments. Clients: - Salesforce, Zoom are big customers already. Financial Performance: - Growth & Trend shows they are almost profitable: Reported a Net Loss of $1.232 billion for the full year 2020, compared to a Net Loss of $5.269 billion for the full year 2019. Excluding Integration and Transformation Costs and Special Items, reported Net Income was $1.801 billion for the full year 2020 compared to $1.409 billion for the full year 2019. The trend is positive. - Cash Flow Positive. - Invested Capital and Total Assets are decreasing, yet total liabilities and debt decreasing, while CapEx is increasing. - Reduced Net Debt by approximately $1.6 billion and reduced leverage to 3.6x Net-Debt-to-Adjusted EBITDA. - For 2021, Lumen has debt obligations of $2.4 Bn still. - However, Lumen had $34.1 Bn of debt in 2020. - LUMN finished the year with $2.9 billion in free cash flow and a requirement of $1.1 billion to meet its dividend obligation. - Insiders & Insider Trading: -0.92% - Institutional Ownership: 79% - About 659 funds hold LUMN, and interestingly enough, while the stock price dumped, Average 13F Ranking has been steadily increasing. This aligns with the Accumulation Distribution model that I presented. - Float: 976.12M. - Short % of Float: 7.51%. - Valuation: 0.97 P/B ratio and 0.64 P/S ratio. Undervalued, by traditional valuations. - Financial Reporting: Solid. - Potential: 5G Market: Market size value in 2020: USD 41.48 Billion Revenue forecast in 2027: USD 664 Billion "The global 5G Applications and Services Market is expected to grow at a compound annual growth rate (CAGR) of 25.8% from 2019 to 2027" (According to 180+ page research report by Fidelity National Financial) - Lumen Technologies should benefit from the growth of the 5G market, so we can expect 25.8% CAGR in revenue from their market share of 5G, and factor in growing market dominance. TA: - Accumulation/Distribution Phases are rather difficult to predict with Elliot Wave Theory, so Dow Theory will be used instead. - Expecting 600%+ move up on breakout. - MACD long term analysis: - Short term outlook: Fib support level, with a big whale buy. Looks ready to move up. - MACD short term bullish divergence: - Stoch RSI indicating possibly one more shakeout: - Historical analysis showing this is likely, if the same whale is in charge: - However, Fib levels indicate that it cannot possibly go much lower! QA: - Interestingly, it would take 5.7 days for shorts to fully cover. It is likely the shorting was used to take the price down from the previous distribution level. Great short squeeze potential. - Naked short selling report collected from FINRA shows that naked short volume was massive in the end of Jan. Most likely to suppress the price at the resistance point. Institutions were not positioned for the breakout yet. - Options flow does not present high gamma squeeze potential, however, the low OI presents a very good long entry. VERDICT: - The company is reducing debt and leverage. This is smart, as there is sentiment that a market correction and stagflation is nearing. - The critical point that investors will need to decide on is if the company can survive such conditions with their remaining debt. At this point, it looks like their debt will soon be eliminated, and they will be profitable. - It is my speculation that in the case of a tech correction, and a rotation into value, tech will still thrive, but it is companies like these - non-speculative, but necessary, will be real winners. A lot of retail excess will be trimmed from unreasonably valued companies. At least some Institutional investors seem to share this sentiment, judging from their accumulation. - This company checks many boxes for me, and looks ready for an explosive move up, so I assign it an S-tier rating. STRATEGY: - Accumulate. - Entry levels: 7.50, 4.00. - Trigger for Long: breakout of falling wedge resistance. - Wave 3 PT: 80.00. - Wave 5 PT: 130.00. I think the Impulse wave 3 target of 80 aligns with the MACD signaling a 600% move-up to come. This is a high probability level. This would put the company's valuation at 86B~, which is not unreasonable, and even still would be undervalued, in my opinion. GL, and if you like the content, give a like, leave a comment, and follow! P.S. Trying to take a more succinct presentation model for DD, based on constructive criticism I have been receiving.
NYSE:LUMNLong
by UnknownUnicorn1043646
9
$HCI TypTap Raises $100 Million from CenterbridgeHCI subsidiary corporation, TypTap Insurance Group, Inc., is pleased to announce that a fund affiliated with Centerbridge Partners, L.P. has invested $100 million in the company. The investment, representing about 11.75% of TypTap, implies a post-money valuation for TypTap of approximately $850 million. In exchange for its investment, Centerbridge received from TypTap preferred shares with liquidation, dividend, redemption, and other rights and received from HCI a four-year warrant to purchase 750,000 HCI common shares at $54.40 per share. The preferred shares automatically convert to common shares upon completion of an initial public offering meeting certain parameters. finance.yahoo.com
NYSE:HCI
by AlenCiken
2
Why cryptocurrency $CAN stock surged in February?$CAN stock surged in February as the extended rally in cryptocurrencies continued to boost $CAN stock. CAN stock is particularly well-positioned to benefit as a maker of Bitcoin mining machines, presently scarce and in high demand. Last week, Canaan announced “improved revenue visibility” for 2021 after receiving orders for 100,000 mining machines in North America, many of which were prepaid. Canaan Creative is just the latest beneficiary of the recent rush into cryptocurrencies. Founded in 2013, Canaan released the first ASIC-powered Bitcoin mining machine and is currently the world’s second-largest designer and manufacturer of BTC mining machines. finance.yahoo.com
NASDAQ:CAN
by AlenCiken
2
Rocket Lab to Become Publicly Traded Through Merger with $VACQRocket Lab, an End-to-End Space Company and Global Leader in Launch, to Become Publicly Traded Through Merger with Vector Acquisition Corporation. End-to-end space company with an established track record, uniquely positioned to extend its lead across a launch, space systems and space applications market forecast to grow to $1.4 trillion by 2030 One of only two U.S. commercial companies delivering regular access to orbit: 97 satellites deployed for governments and private companies across 16 missions. Transaction will provide capital to fund development of reusable Neutron launch vehicle with an 8-ton payload lift capacity tailored for mega constellations, deep space missions and human spaceflight Proceeds also expected to fund organic and inorganic growth in the space systems market and support expansion into space applications enabling Rocket Lab to deliver data and services from space Business combination values Rocket Lab at an implied pro forma enterprise value of $4.1 billion. Pro forma cash balance of the combined company of approximately $750 million at close Rocket Lab forecasts that it will generate positive adjusted EBITDA in 2023, positive cash flows in 2024 and more than $1 billion in revenue in 2026 Group of top-tier institutional investors have committed to participate in the transaction through a significantly oversubscribed PIPE of approximately $470 million, with 39 total investors including Vector Capital, BlackRock and Neuberger Berman. finance.yahoo.com
V
by AlenCiken
4
QuickLogic's Amazon-Qualified Reference Design built in AlexaQuickLogic's Amazon-Qualified Reference Design Brings Alexa to Hearables - Smart hearable reference design for voice-initiated, hands-free Alexa Built-in Devices with Close-Talk support - ­Provides hearable OEMs and ODMs with a head start on designing their own products with the Alexa user experience. QUIK today announced it has released an Amazon-qualified reference design that empowers OEMs and ODMs to evaluate and develop their own smart hearable products quickly and easily. This kit integrates the Alexa voice-initiated Close-Talk experience, enabling a broad set of battery-powered applications to communicate directly with Alexa for a multitude of use cases. "The age of the smart hearable has arrived, and our always-listening, Alexa Close-Talk reference design is the ideal platform for developing next generation AI-enabled hearable products," The QuickLogic QuickFeather AVS reference design for Amazon is available now and can be ordered from QuickLogic's online store. finance.yahoo.com
NASDAQ:QUIK
by AlenCiken
2
$TAOP Enters into Blockchain Deployment Consulting AgreementTAOP Enters into Consulting Agreement with Great Bay Capital Investment for Blockchain Deployment $TAOP announced today that the Company has entered into a consulting agreement (the "Consulting Agreement") with Great Bay Capital Investment Limited ("Great Bay"). Pursuant to the Consulting Agreement, TAOP engaged Great Bay as a consultant for a two-year term effective February 19, 2021. Great Bay will provide various consulting services including the following: Provide the Company with business development services focused on blockchain and digital assets (such as Bitcoin, Ethereum, etc.) investment opportunities. Introduce TAOP to potential investors for strategic investment. Introduce potential M&A targets in blockchain industry, and assist TAOP in completing relevant due diligence work and propose M&A plans. growing market demand for digital assets such as Bitcoin, maturity of advanced solutions, and improving regulatory clarity present considerable market opportunities. It’s time for TAOP to embrace the opportunities in blockchain industry and digital assets, especially Bitcoin. In consideration for the services to be provided by Great Bay, the Company agreed to issue to Great Bay a warrant (the “Warrant”) within 7 days after the execution of the Consulting Agreement for the purchase of 1,000,000 ordinary shares of the Company, exercisable at $3.50 per share (subject to adjustment) at any time prior to the 181st calendar day after the date of issuance. The Warrant can only be exercised for cash. finance.yahoo.com
NASDAQ:TAOP
by AlenCiken
$SINO Announces LOI to Acquire 51% of Computing Power CenterSino-Global Announces LOI to Acquire 51% of Computing Power Center Company $SINO announced today that it has signed a Letter of Intent ("LOI") to acquire 51% of Inner Mongolia Nine-Chain Intelligent Big Data Park Service Co., Ltd. ("Nine-Chain Intelligent"). Based on the information furnished to the Company, Nine-Chain Intelligent's computing power center currently has about 150,000 KW*hour capacity for Bitcoin mining. The total Bitcoin computing power reaches 4500P. In addition, the center has 50,000 KW*hour capacity for Ethereum mining. The total Ethereum computing power reaches 28T. 51% of equity interest is approximately $8.5 million. We are extremely excited to execute an LOI to help us strategically expand our business to Bitcoin and Ethereum mining. Recently, cryptocurrency mining has evolved rapidly with scalability and infrastructure. This investment will provide Sino-Global a foundation to develop the mining project efficiently. finance.yahoo.com
S
by AlenCiken
$AXT revenue in Q4 rose 47% year over year to $27 million!“2020 was a year of solid improvement for AXT, capped off by strong indium phosphide growth, particularly in 5G, in Q4, which is typically a seasonally down quarter,” Revenue for the fourth quarter of 2020 was $27.0 million, compared with $25.5 million in the third quarter of 2020 and $18.4 million for the fourth quarter of 2019. Gross margin was 34 percent of revenue for the fourth quarter of 2020, compared with 35 percent of revenue in the third quarter of 2020 and 21 percent for the fourth quarter of 2019. Net income in the fourth quarter of 2020 was $2.1 million, or $0.05 per share, compared with net income of $1.0 million or $0.02 per share in the third quarter of 2020, and a net loss of $2.0 million or $0.05 per share for the fourth quarter of 2019. three analysts upgraded their 12-month price targets for the stock. Analysts from Northland, B. Riley Securities, and BWS Financial set price targets of $15, $12, and $20, respectively. finance.yahoo.com www.fool.com
NASDAQ:AXTI
by AlenCiken
H.C. Wainwright boosted price target from $24 to $50 Bitcoin believers are reaping the rewards and H.C. Wainwright analyst Amit Dayal thinks the surge merits a rethink for his CleanSpark (CLSK) model. The analyst boosted his price target from $24 to $50, suggesting upside of 72% from current levels. Accordingly, Dayal’s rating stays a Buy. The reason for the new bullish target is easy to explain. The microgrid software specialist has been growing its Bitcoin mining capacity and with the rising Bitcoin price, CleanSpark will be raking in additional revenue. However, the problem with trying to estimate projected revenues for any company involved in Bitcoin related endeavors is extremely difficult due to the constantly moving goalposts, especially when looking several years ahead. The Bitcoin contribution to CleanSpark’s balance sheet is set to increase. The March quarter will see a full quarter of Bitcoin input, with production bringing in between 1.5 to 2 bitcoins per day as the hash rate has increased from 200 PH/s in December to over 315 PH/s in February. By early 2H21, the company expects to have an extra 800 to 880 PH/s of processing capacity which should grow the total Bitcoin mining capacity to between 1.0 and 1.3 EH/s. finance.yahoo.com
NASDAQ:CLSK
by AlenCiken
$EBON to Launch Bitcoin Mining BusinessEbang International to Launch Bitcoin Mining Business Ebang International Holdings Inc. (Nasdaq: EBON), a blockchain technology company in the global market, today held a board meeting and passed a resolution (the “Resolution”) to launch Bitcoin mining business. According to the Resolution, the Company plans to operate its Bitcoin mining business by adopting a combination of deploying self-manufactured mining machines and mining machines purchased from other manufacturers as well as leasing computing powers from other mining farms. At the same time, the Company also expects to invest in data center constructions to provide support for Bitcoin mining activities. finance.yahoo.com
NASDAQ:EBON
by AlenCiken
2
$RIOT blockchain Stock skyrocketed to new highsBitcoin Blasted Above $50,000 Today, Causing Riot blockchain Stock to Soar as Well More and more, Bitcoin is becoming accepted by major companies, suggesting it is well on its way to mainstream adoption. catalysts that are pushing bitcoin price up: - Mastercard (NYSE:MA) announced that it will allow cryptocurrencies on its payments network before the end of 2021. - Bank of New York Mellon (NYSE:BK) will also start supporting its clients' Bitcoin needs, according to The Wall Street Journal. If these truly are the early signs of the so-called phase four of Bitcoin's adoption, then demand could keep growing for Bitcoin throughout 2021. Demand is growing, and that's why the price of Bitcoin has soared in recent months. And many investors believe a good way to play this trend is by buying Bitcoin-mining stock like $RIOT blockchain. . Riot blockchain get essentially paid in Bitcoin for providing computing power to the blockchain network. And investors believe revenue and profits will soar with the rising price of Bitcoin. Moreover, investors are getting excited to see Riot blockchain amping up their computing power (known as their hashrate) because some assume this means the company will be able to mine more tokens. Riot Blockchain announced it's deploying new equipment over the next week that will take its hashrate to over one exa-hash per second (EH/s). That's quite a lot, and it's an increase of 26% from where it is right now. But investors shouldn't assume that means the company will mine 26% more Bitcoin.
NASDAQ:RIOT
by AlenCiken
7
Pricing of $18.7 Million Registered Direct Offering Priced ATMZW Data Action Technologies Inc. Announces Pricing of $18.7 Million Registered Direct Offering Priced at the Market under Nasdaq Rules today announced that it has entered into a securities purchase agreement with several institutional investors for a registered direct placement of approximately $18.7 million of shares of common stock of the Company at a price of $3.59 per share. The price was set at market price in accordance with the rules of Nasdaq. The Company will issue a total of 5,212,000 shares of common stock to the institutional investors. The Company also completed a concurrent private placement of warrants to purchase shares of common stock to the same institutional investors. The warrants are to purchase up to 2,606,000 shares at an exercise price of $3.59 and have a term of three and one-half years. finance.yahoo.com ZW Data Action Technologies signed a strategic cooperation agreement with BitSpace for Joint Blockchain Mining Platform The two parties will use their respective capital, platforms and resources to build a joint blockchain mining platform. The ZW data’s blockchain infrastructure framework (BIF) platform will offer a new model of smart contract for automatic aggregate mining and achieve the automatic distribution of income. finance.yahoo.com
NASDAQ:CNET
by AlenCiken
2
$CLPS Signs Vendor Agreement with U.S. Digital Payment PlatformCLPS Incorporation Signs Vendor Agreement with a Well-Known U.S. Digital Payment Platform, Ramps Up Global Expansion Strategy. $CLPS will provide IT services, including data analysis and payment risk management for their international business. Growing beyond the Mainland China market, CLPS has been extending its presence and client base internationally, including blue chip financial institutions to meet the strong demand for IT services. The Company's competitive advantage and expertise in the payment industry are contributing factors that made the contract with the Client headquartered in the U.S. possible. It enables the well-established business relationship of both parties to transpire in the international market. finance.yahoo.com
NASDAQ:CLPS
by AlenCiken
$SONM Software Applications Earn FirstNet Certified™ DesignationSonimWare Enterprise Software Applications Earn FirstNet Certified™ Designation FirstNet® Subscribers Can Now Access Sonim SCAN and Sonim SOS Android Applications via the FirstNet App Catalog. Achieving a FirstNet Certified™ designation means that the Sonim SCAN and SOS applications are heavily vetted and trusted solutions for public safety, meeting FirstNet app requirements. The Sonim SCAN application utilizes an industry-leading Scandit Barcode Scanner Software Development Kit (SDK) to turn the ultra-rugged XP8 into a world-class barcode scanning solution for front-line workers who must rapidly capture large amounts of data. finance.yahoo.com
NASDAQ:SONM
by AlenCiken
500.com Limited Announces Acquisition of BTC.com Businesses500.com Limited Announces Acquisition of BTC.com Businesses today announced that it has entered into a share exchange agreement with Blockchain Alliance Technologies Holding Company, pursuant to which to Company has agreed to issue an aggregate of 44,353,435 Class A ordinary shares of par value US$0.00005 per share of the Company (the "Class A Ordinary Shares") to Blockchain Alliance at the first closing, which shares represent approximately 10% of the Company's outstanding shares as of January 31, 2021, in exchange for the entire outstanding share capital of Blockchain Alliance Technologies Limited held by Blockchain Alliance after the reorganization. The first closing of the transactions contemplated by the Share Exchange Agreement (the "Transactions") is subject to certain closing conditions, which include, among others, the transfer to the Company of the entire mining pool business of Bitdeer Technologies Holding Company ("BitDeer") operated under BTC.com, including the domain name BTC.com and the cryptocurrency wallet of BTC.com (collectively, the "BTC.com Pool Businesses"). The first closing is expected to occur on or before April 15, 2021. finance.yahoo.com
W
by AlenCiken
1
$CAN Announced all time high purchased bitcoin mining machinesCanaan Announces Improved Revenue Visibility in 2021 today announced that its revenue visibility has improved substantially in 2021 as a result of attaining purchase orders totaling more than 100,000 units of bitcoin mining machines from customers in North America. Many of those purchase orders were placed with prepayment and will likely occupy the Company’s current manufacturing capacity entirely for the full year of 2021 and beyond. With those fully committed purchase orders, the Company now enjoys a much higher degree of revenue visibility and more precise forecast. As such, the Company is able to leverage such information and additional liquidity to conduct its component purchases, production scheduling, warehousing and logistics. In late 2020, we shifted our client base to mostly publicly traded companies and bitcoin-focused investment funds which tend to place sizable orders with longer-term commitment. As a result, we can now forecast our revenue much more precisely. This development from Canaan isn't a total surprise. After all, the price of Bitcoin has risen dramatically in recent months, and that attracts more miners to the pool. When more miners join the Bitcoin blockchain network, it adds to the hashrate. According to Blockchain.com, the total hashrate for Bitcoin has spiked to all-time highs in recent days. finance.yahoo.com www.fool.com
NASDAQ:CAN
by AlenCiken