Big companies and big stock exchanges typically move slowly in terms of innovation and excitement. They get bogged down in paperwork and regulation. Smaller companies (like microcap stocks) and smaller stock exchanges (venture exchanges) are more quick to adapt and can be more fluid. They are willing to take greater risks and they nurture venture capitalism.
Over the past two years, both the CSE and the TSXV (the CSE was the true innovator), were willing to take risks on medical marijuana stocks and it has produced incredible gains for thousands of investors.
Now we are seeing the same thing with anything related to Blockchain or Cryptocurrency. The gains and irrational behavior (herd mentality) already exceed what we saw during the tech boom of 1999 – but it doesn’t matter. There is no point standing in front of a bullet train.
Typically one would think this type of irrational exuberance would not end well (and it typically doesn’t), but look at what has happened with Bitcoin. Few ever thought a $10,000 Bitcoin was remotely possible?
And now with small public companies (microcap stocks), the exchange of information and ideas moves so quickly through Social Media and Message Boards that the herd mentality on hot sectors is being fueled like never before. And in Canada, investors can thank (or curse) the TSXV and the CSE for accommodating that.
INCREDIBLE (ALBEIT, IRRATIONAL) GAINS SINCE THE SUMMER
1) HIVE: TSXV $3.95 – HIVE Blockchain www.hiveblockchain.com
Gained 2000% from a spring 2017 financing to early November. I warned publicly about this one weeks ago as a massive amount of cheap paper was coming due. It subsequently corrected hard from $6 to $2.80 but the current market cap is still over $900 Million. HIVE is a coin miner.
2) GET: CSE $3.12 – Glance Technologies www.glance.tech
20 cents in August and hit $3.80 this week for an 1800% gain in three months!! Market cap now $400 Million and Q3/17 revenue was $240k. Yes, that’s $240,000 in revenue and < $1 million in the bank.
3) NC: CSE $6.50 – NetCents Technology www.net-cents.com
40 cents in October, hit $6.70 this week for a six week gain of 1575%! Market cap > $200 million. Financials ending July showed a company that was broke and had $54,480 in revenue. The business model resembles a (legal) Ponzi Scheme.
4) BLOC: TSXV $2.60 – Global Blockchain www.globalblockchain.io
20 cents in July and hit $3.30 early November for a four month gain of 1500%. Holds a basket of companies within the Blockchain space. Raising $40 Million at $2.55. Excluding that financing, the market cap is in the range of $68 million. High – but not completely irrational.
5) MOGO: TSX $8 – Mogo Finance Technology www.mogo.ca
The most viable tech of the group. A very well established fintech company that is also developing Blockchain technology. I featured MOGO to MicroCap.com subscribers in Q4/16 near $1.25 so it has produced a gain of almost 600% in 2017.
November 2016 I also featured MOGO on LinkedIn Pulse at $1.50
6) BTL: TSXV $8 – BTL Group www.blockchaintechltd.com
100% gain in the past month and nothing “ridiculous” on this one. They are developing a Blockchain platform. Seems the more credible the business model, the less irrational their investors / shareholders are. What is that telling us?
7) PXI: TSXV 25 cents – Planet Ventures www.planetventuresinc.com
Trading at 3 cents this summer, the stock even at 25 cents is up 700% in two months – simply because they have discussed going into Blockchain and Cryptocurrency. Market Cap near $20 million with 20 million shares recently financed at 5 cents.
8) CODE: CSE 28 cents – 360 Blockchain www.360blockchaininc.com
4 cents through the summer and up 600% the past two months. Market cap $32 million. Focus on Blockchain versus coin specific. Financials ending September show $1.5 million cash and $47k revenue.