NFT News: Top Pick WKEY - HOFV, DLPN, TKAT, JFIN, ZKIN, OCG, KBSF, ABXXF

Our top NFT pick WKEY pulled back 30% after doubling on Wednesday on more great news on the digital security and NFT front. It announced the introduction of WISe.Art, a digital certificate of authenticity — a “non-fungible token” (NFT) — that lives forever on the blockchain, unchanged and unchallengeable, as proof of buyer’s ownership. This is the company's fifth NR in eight days, and second one it released during market hours, killing shorts. Traders should be aware of the likelihood of great news releases during market hours, usually around 1pm Eastern. The stock could see buying pressure tomorrow and every day going forward during lunch hour in expectation of another big release. Today's pullback makes for a great loading up opportunity in our opinion. WKEY's market cap is $271 million, far less than TKAT's $445 million market cap even though WKEY clearly has the better and more important news in the NFT space and is based in Switzerland, an important financial hub and more trusted jurisdiction than China. TKAT's market cap topped out at over $800 million on this run. WKEY could do the same.

In addition to TKAT rising today, OCG also rose while JFIN and ZKIN dropped. But the leader in Chinese NFT or NFT-rumored stocks was KBSF, rising 31%.  KBSF has recently combined with a company that owns Luxventure, a social media platform offering cross border merchandise through online and off-line channels and luxury tourism experiences to its members. So it's a good candidate for NFT speculation. It also has only 1.6 million share float. This is four times smaller than TKAT's 6 million float, so it can really move on any rumor. DLPN and HOFV had a quiet Thursday, the day after announcing a partnership.

ABXXF, Abaxx Technologies, is a blockchain technology platform in Canada setting up a commodities exchange powered by Ethereum that could be an NFT play. Like WKEY, it's also developing remote document signing services. ABXXF was up again today. CEO Josh Crumb recently tweeted about his contribution to NFT back in 2017/18 with a colleague and hinted at plans in the future for Abaxx. 















Disclosure: We own shares in WKEY, ABXXF, KBSF

Comments

Post a Comment

Popular posts from this blog

Carvana: The Gamma Squeeze is Real, Time to Bankrupt Kerrisdale

Image
Heavily shorted Carvana Co. (CVNA) is in the middle of a squeeze. One that looks eerily similar to the beginnings of the one we saw on GME that eventually made it run to $400 and took down Melvin Capital. Once again certain market players or commentators who focus on fundamentals and who misunderstand or downplay the short squeeze thesis will only add fuel to the fire as they short the stock. Will Carvana be able to refinance its debts next year? Will it become profitable by then? Who knows, and who cares. 2024 isn't the timeline here. The timeline starts as early as June 16, 2023. Triple witching day on options. This time Kerrisdale Capital is the target. The firm is in a desperate spot because the last short call it made was C3.ai, Inc. (AI). AI is in the middle of its own short squeeze and has nearly doubled into $40's since Kerrisdale tried taking it down: The AI report is still featured alongside on the CVNA one on Kerrisdale's website , so we can assume this position
Read more

The Next NVDA-Backed Runner and New Asian IPO Squeeze Play

Image
We have seen stocks like Super Micro Computer, Inc. (SMCI) and SoundHound AI, Inc. (SOUN) have incredible squeeze runs thanks to their connection to NVIDIA Corporation (NVDA). We think the next one will be Spire Global, Inc. (SPIR), which popped a week ago after it announced a collaboration with NVDA to enhance AI-driven weather prediction. A few day later it dropped on the announcement of a financing at $14, with the potential to raise $61 million if warrants at $14.50 are exercised. We think there is a good chance that NVDA got in on this financing, as it tends to invest in the companies it does these deals with when spreading AI across different sectors. One such recent example was with Recursion Pharmaceuticals, Inc. (RXRX) for AI in drug development.  It looks like SPIR didn't really need this financing as it has enough cash and looks like it will be cash flow and net income positive in 2024. This financing was of a strategic nature, not something led by brokers to fund a com
Read more

CVNA Squeezing, ROOT and RXRX are Next

Image
Earlier today we stated that Root, Inc. (ROOT) and Recursion Pharmaceuticals, Inc. (RXRX) were next to squeeze after Carvana (CVNA). One month ago  we mentioned  the gamma squeeze potential on CVNA. Now that this is at hand and the stock has more than doubled, it's time to go long on two other heavily shorted stocks that stand to benefit from the CVNA squeeze as desperate shorts have to cover.  The strategy worked perfectly as ROOT increased 19% and RXRX increased 16% on the day while CVNA rose another 40%. This will be just the beginning as shorts are hemorrhaging on multiple related positions. If you look at the chart for the day, it becomes very clear how highly correlated these three stocks are right now. This is undeniably a sign that shorts, particularly algo HFT shorts are covering simultaneously held positions.  CVNA  made a $126 million investment  into ROOT and has embedded its insurance program into its systems. So any improvement in financial performance on CVNA implie
Read more