When I do my research, I do it top down.
I’ve had some success in doing this the past few years which is funny because I’ve actually developed a pretty sweet stock selection trading system that can produce many 30%-80% winners. The thing is I’ve fallen in love with bagger hunting. It’s become a bit of an addition and the more success I have…the more I want.
I’m also a gold bug and found SBM, NST this way…I found them early but didn’t ride them all the way up like I should have. More recently AGY, which I am going to ride the top.
With my top down approach. I look at the sector. Throw every stock on a spreadsheet and just plow throw all the data. Read every ASX release, report. Google, Once the list is smaller…speak to management, investors etc. Then check out everything the directors and management every did, good or bad. If little Bobby pushed Cindy of the swing when he was 5…I want to know about it.
How I found OOK is interesting.
With Gold, Lithium and other sectors there are 100+ stocks. With lithium there was about 50+ at the time (now there’s 120+…I’ve lost count.)
Me and a good friend got into a chat about bitcoin recently and how much it’s over hyped. We then got into a rather nasty argument about it, even though we both agreed overall. I think it ended on like something like you’ll probably sell all your shares and buy bitcoin. I said NO I won’t!
Then that week I decided to learn everything about it (as I’m sure my friend did too)…this got me onto blockchain …which is REALLY what it’s ALL about (not bitcoin). Then after my research. I decided that there’s going to be a MASSIVE investment opportunity in blockchain. Even though this isn’t the best analogy…it works for me…
Bitcoin: is the gold and the prospectors risking everything to get it.
Blockchain: is selling the picks and shovels to get the gold.
(We all know which investment worked out better from a risk/reward ratio.)
So I thought I’d have to go through the 100’s of bitcoin/blockchain stocks on the ASX. Then I realized…there are hardly ANY! Bloodly hell.
I believe we are at the VERY beginning of the sector and its going to be massive.
Then I asked myself…why aren’t there 100+ bitcoin/blockchain stocks to choose from. This even after the ASX and many other large money centres would be getting into the technology. Experienced investors know when there a “NEW thing” the small caps pop up everywhere and FAST. We all just saw this recently with lithium. Every mining junior “suddenly” became Lithium miners and slapped lithium on the front door for a 100% pop in their SP.
I was shocked to other find about ONLY 15-16 ASX stock that have any blockchain exposure. I asked myself why?
Here’s the thing…as this is a new field…there aren’t actually a lot of good people or firms in this area. I believe this is Lithium 2015 or to go back a bit…Gold rush 1851. If you get in NOW…you could maybe do incredibly well IF you pick the right stock.
Now, I’ll let you DYOR research to confirm this but, out of the 15-16 I found…3-4 were empty shell with a press release hopefulls. There were some larger caps that part of their business might be getting into it. There’s only a handful actually serious about blockchain.
For me as a investor I want to buy HIGH risk/reward ratio stocks so the lower the MC, the better. (Or what’s the point of investing?) This is why OOK stands out as the ONLY real serious option for me. Also, I think I’m not the only one who’s figured this out too.
I’ll be covering these reasons in more detail later and I’ll also be covering why I think Brontech “could” be THE hot property in blockchain on the ASX.
-It’s small, only 20M MC. (a little over 200M shares)
-Management are young and switched on. These aren’t blockchain guys. However, they are money guys and know this is the sector to be investing in.
-Peter Wall is a director and he’s getting a reputation as having the midas touch on the ASX. He’s also a director in Myfiziq…the best performing stock on the ASX. Stock is up 2,800% !! and could still have a way to go, if they execute well.
-Recent investment in Brontech a coup. Very hot blockchain company (see my post on why I like OOK’s investment in Brontech)
-Brontech is talking to many big names. A future deal would unlock massive value in Brontech and have a dramatic effect on OOK SP.
-Brontech has it’s own bitcoin. Let’s be honest here…to have a investment in a company that has it’s own bitcoin…well you just have to look at what’s happening in the bitcoin space. Then you look back at OOK’s MC and you can see the incredible possibilities.
-OOK has more funds to invest, as there may be a option to take a larger stake in Brontech in the future.
-I’m talking to a lot of people and the main “guess” we are thinking is Brontech could use OOK as a platform to list on the ASX by a reverse take-over. This ONLY happens if Brontech gets a few big runs on the board.
-OOK is STILL looking for more investments in blockchain. Now that OOK has Brontech…other blockchain companies around the world may have a better view of OOK. This however is just IMO. OOK isn’t done yet.
-The next 1-2 months are going to be packed with ASX announcements and updates. The Brontech deal needs to be finalized. I get a feeling there’s another blockchain investment on it’s way. OOK would then have 3 blockchain related businesses and would be a sought after asset.
-Of the 2-3 other players in the space...one can see the % moves in the SP on deals and solid updates. I’m seeing 30-50% moves in a day. There’s just not much supply and some investors don’t fully understand the space and jump in. This is good and bad for OOK.
-If one of the banks…which has been rumoured or another major name do a deal with Brontech. Look-out, it will open the floodgates. Brontech, itself on its Twitter feed has said they might have some exciting news in Jan. This is just a couple weeks away!
-Brontech has applied for 3 major financial licenses. If they get 1 or all. OOK through Brontech will get a major re-rate.
-OOK’s other asset is a company called Akela Platform which it owns 100% of. It in its own right could become special and has had some recent success.
-The investment media is in love with OOK and Brontech. Brontech’s CEO Emma Poposka got a full editorial in the SMH last week. Many mining stocks that have done better with more couldn’t buy that kind of FREE editorial. This ONLY helps Brontech build awareness and OOK’s SP.
-From a trading/investment side…the stock’s side sell is incredibly thin compared to it’s sometimes massive volume. In my experience, this tells me current shareholders fully understand all the above and aren’t giving away shares.
-Management are on minimum wage. 24k a year!! Zak as de-facto CEO is on 60k. Good lord…I love seeing this…it’s screams corporate responsibility. So often we see execs do CR after CR just to pay salaries! Tight on expenses…LOVE it!
-Zero debt!
-Take-over. Look at the large tech companies actions or buys of the last 20 years. Companies like Google and Mircosoft don’t start new techs…they buy them for incredible amounts of money. Even banks or large billion dollar data companies like Equifax “could” look at getting ahead of the game quickly. OOK getting a piece of Brontech was a masterstoke. There just aren’t that many Brontechs out there.
-Did I mention it’s MC is ONLY 20 million!!! If you take on-board that most traders/investors would hold an avg. 100k position. (There will be 708s grabbing a lot more). Then there’s management with a bunch. That leaves 150 spots maybe 100 or less. Supply issues anyone? If an investor who’s done their research into OOK and bought between 3-8 cents…how many are going to sell at 1 or 2 bags?
There’s just NOT a lot of quality blockchain investments with good assets that have a bunch of positive news events coming. I think OOK is special. I’ve been lucky…maybe clever in finding a few baggers but, if you DYOR you might agree with me that OOK is a winner.
Recapping…
I think this is the best of a small lot (blockchain) on the ASX and I think the market just starting to figure this out. The rest of the market will understand that they need exposure to blockchain.
IMO…a OOK share could become the golden ticket.
I’ll post my MC thoughts on OOK shortly.
**VERY IMPORTANT**
All the above is IMO!!!!
Please DYOR!!
I could be totally wrong in everything I’ve said.
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