The Short Attack Was Misguided, But SOS Ltd. Remains Wildly Overvalued
Mar. 25, 2021 11:31 AM ETSOS Limited (SOS)ARBKF, BFARF, GBTC...29 Comments6 Likes
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@Post Hoc Analytics This is perhaps the single most bizarre piece of disinformation that I have ever seen published on SA. I love SA and its group-sourced model, and I have been a contributor since 2016. However, a weakness of the SA model is that any random character can open a brand new account with SA, and then publish 1 hit-piece in an attempt to influence the market to the short side. This is exactly what you have done with the pseudonym that you are using. All readers want to reference the fact that this clueless hack just opened his account with SA, and this is the one and only "article" that he has published. Now that we know a lot about your personal motivations, let's move on to shredding your attempt at spreading FUD through the use of bogus disinformation: This so-called article is mostly a rambling stream of consciousness that unfortunately found a keyboard... and its way onto a very valuable platform called Seeking Alpha. Your effort to bash a very special, young, growth company is an inexcusable attempt to promote your self-serving short interest. I am a long/short trader that was, in fact, short SOS above $16 in the pre-market. Obviously, the short worked and I made a very nice profit. While I was short SOS, I began doing my due diligence on the company. Of course, the first impression back then was, "Chinese stock with many questions." All of those initial questions were easily answered by anyone who was willing to put in some basic research work. I learned SOS was legitimate. During my research I learned much more about SOS, and being old-school with 34 years of experience in the market I Googled Doug Brown and I called him on a Friday afternoon when he happened to answer his own phone. We spoke for 20 minutes. I had already covered my short and gone long shares of SOS by the time I wrote my first of two articles on SOS. Doug Brown, who sits on the board of directors at Transamerica Corporation, was a vice-chairman at Morgan Stanley, and has decades of venture capital experience in China was very informative during our conversation. After I spoke with Doug Brown, I immediately began adding to my initial purchase and I have built a significant position in SOS. For anyone who is unaware of who Doug Brown is, the man is semi-legendary on Wall Street and for his venture capital success in China. Doug is now the Chairman of the Board for SOS, Limited. I am also in contact with Russell Krauss who is vice-chairman of SOS's board, and has had a distinguished career that included his senior vice presidency at Hewlett-Packard. I was early on Netflix when they first began streaming on demand. I was a subscriber to the service when they used to mail out DVDs. The advent of streaming was clearly going to be big. I built a position in NFLX when the stock was single digits. Netflix was a wealth builder for many investors. I mention Netflix because SOS fits the same mold of pioneering new technology upon the base of a successful core business. SOS is so much more than just a successful crypto miner as this character hiding behind this bogus "article" would have you believe. The company is doing pioneering work on blockchain-related technology, and also "De-Fi" (decentralized finance) that the company has a brilliant, greenfield, global opportunity ahead of it that literally does not have a future ceiling within sight. SOS very much has the potential to become a wealth-building stock for current investors. Here is why: The character who somehow managed to sneak this hit-piece past SA editorial tries to mislead readers by intentionally choosing to leave out the triple digit revenue growth, and profitability, being delivered by the core business at SOS!! Please read that material statement of fact again, and consider who would choose to leave out an entire 60% of the company's existing, core revenue growth. This intentional omission is inexcusable. We all appreciate an honest bear thesis. That genuine type of honesty is helpful for bulls to understand the risks of any given stock. What this rascal has chosen to do is something far different. How can anyone assign a shred of credibility to this individual when he intentionally chooses to leave out the company's primary source of revenue that was pre-announced on 12/20/20 by the company as delivering triple-digit revenue growth YOY from 2019! This is not what we want to see on SA, or in our public markets. Intentionally leaving out the $49.5M in revenue from 2020 that was up by about 300% from 2019 is less than credible. Furthermore, $39M of this revenue came from 2H2020 as the new business model has begun ramping up. Better yet, the company gave guidance that they estimate forward revenue growth in 2021 from the core business alone, to increase by 286% to about $141M! You chose to leave ALL of this hugely important factual, material, tremendous revenue growth out of your dishonest hit-piece. That is not what we want on the SA platform. You also intentionally chose to omit the company's third stream of revenue that will be emerging from the cryptocurrency financial services division in 2021. You omit 100% of the revenues from the company's pre-announcement of 2020's triple digit growth. You omit more than 60% of the company's forward core revenues in 2021. You also omit the company's emerging 2021 revenues from the launch of the crypto financial services division. You fail to mention that the triple digit revenue growth in 2020 will likely increase to about 500% revenue growth in 2021. You fail to mention that the company is increasing profitability, has over $300M in cash (nearly $2.50 cash per share), and has zero debt! How many items of material information does a one-article-wonder in a new SA account have to omit before we all understand the type of individual that is hiding behind this bogus "article?" You manipulatively type the word "dilution" three times in succession, but fail to mention the success of the February recapitalization now has the company flush with cash in the amount of nearly $317M at the time the offering was completed. Do you think a small cap having over $300M in cash is a material piece of information? Most of the reasonable people who have experience in the stock market think $300M in cash at a small cap with zero debt is noteworthy. Are you certain that your meandering ramble was accurate about you having any experience at all on Wall Street? Because most actual Wall Street veterans think that triple digit revenue growth, profitability zero debt, and over $300M in cash is worth discussing in a "research article" on a stock. Do you think that SOS is going to park that $300M in a money market, or do you think it will be used to generate greater revenues? Are you aware that the timeline of SOS pre-announcing its 286% growth for 2021 was made 2 months prior to the event of raising $317M in February 2022? Did you consider it possible that SOS may be able to increase revenue growth with this war chest of cash? Did you know that SOS began receiving miners in February 2021 as well, when the 2021 guidance on revenue growth was made in December of 2020? Neither the capital raise of $300M, nor the launch of crypto mining operations is likely factored into the 2021 forward guidance for growth because neither of this hugely significant events had occurred at the time that the 2021 forward guidance was given. This didn't occur to you?... or you just chose to omit this material fact, as well? From your vast and valuable Wall Street experience, what exactly do you think that SOS is going to do with this $317M in cash, plus some number of additional millions in profits from operations? Here's a wild thought that may have escaped your veteran analytical abilities: how about, Buy More Miners! You go to great lengths to try and diminish the revenue generation that SOS is ramping up from the initial fleets of miners purchased. The revenues from these early miners at SOS will accrue to the top line for earnings reports just the same. Possibly, SOS is now awaiting the confirmation of a purchase for additional miners that will continue to increase the revenue ramp higher, even after the 3rd fleet of 5,600 miners is delivered ot SOS. 15,600 miners is not likely to be the end of crypto mining growth when the company has a $300M+ war chest to deploy. Maybe your veteran experience didn't think of this obvious point. SOS could possibly surpass the kind of successful performance that MARA and RIOT delivered in recent months. SOS could actually become a 10X bagger trade in the next 12 months based upon revenue growth. SOS could become a 20X bagger in the next 24 months, imho. Perhaps the most significant bullish catalyst of all for SOS may now be developing in its pioneering work on blockchain, and also in cryptocurrency financial services. The launch of this nascent division at SOS now has the potential to be game-changing for the entire global cryptocurrency industry. The potential for growth from this newest division at SOS could be tremendous. What's more, any veteran Wall Street investor understands the value of igniting the imagination of investors with a future growth "story stock." Netflix was that kind of stock when I bought it in single digits. My dad was an electrical engineer and I remember him buying the first Apple Mac in 1984 as an early adopter of technology. He loved the Mac so much, that he then bought the stock of Apple and passed those shares down to us as 2nd generation shareholders. Finding ideas that build wealth, and buying them early on in the single digits, is the key to empowering an investors to become financially independent in their lifetime. Some of us remember when fools were saying that computers were a fad. Apple shareholders knew better. I remember being a stockbroker for a NYSE-member firm when prospective clients would tell me, "The Internet is a fad." No Mr. Jones, sorry you didn't buy Amazon after its IPO when I called you, but I bought AMZN for my own account when it was only an online seller of books! Amazon being "the river of knowledge" that this bookseller sold to its customers. Shocker: the Internet turned out to be a really strong fad after all. There were chatrooms filled with bears who told me that Blockbuster Video was going to crush the upstart Netflix company. I disagreed and bought shares of NFLX in single digits and held them for years until they split 7 for 1. I posted articles on MARA and RIOT here on the SA platform, and in my Trader's Idea Flow marketplace service on SA when these stocks were single digits last year. I also posted an article calling for "HODL Bitcoin to $50,000" on 3/8/19 when BTC was $3,913 per coin. I stated my belief that BTC would reach $50K in 2020, so I was late by 2 months. Now I have built a significant position in SOS. We have watched the SOS bear thesis evolve from: SOS doesn't exist! ... to SOS has a funny IP address, and they all live in a hotel that a lady said had no office space! ... to the crypto miners don't exist! ... to now the bear thesis has devolved down to being, "I think the miners might be slow, so revenue growth might only be 300%, instead of 500%, because I won't tell you about 60% of the company's revenue growth!" Seriously, this has been the evolution of the bear thesis. Never in my 35 years on Wall Street have I heard of such bizarre insanity from the bear camp. Perhaps bears underestimate the new investors who have come to the market in the last year, or so. That is a serious mistake because I have watched many of these new investors learn faster than Neo in the Matrix movie. Plug these newer investors into that neural brain scan chair and watch them learn Kung-Fu, or weapons systems, or how to trade stocks! lol. Just like Neo and Trinity in the Matrix. The veterans and the newer traders all understand how triple digit revenue growth will cause an increasingly profitable small cap, with zero debt, that is stacking up BTC and ETH daily in their vault, while deploying over $300M in cash to build explosive growth for the foreseeable future... ... and while that along can take SOS to $60 per share in 2021, and $120 per share in 2022... the real wild card catalyst that could make this SOS stock become a wealth-builder, like NFLX, this is the pioneering work on De-Fi, blockchain, and crypto financial services that the team at SOS has just launched. If you want to see a small cap stock grow wings... then go ahead and show the market a new technology for the future of cryptocurrency that no other company has... do you want to hear the pea-brains of bears go, "Snap, Crackle, POP!" Then stay tuned and watch as SOS brings game-changing technology patents to market, as it delivers 500% revenue growth from its core business and crypto mining. This is going to be a long, and profitable ride for SOS bulls. I am wondering if this character who wrote this hit-piece article on SOS is one of those NFLX bears who thought Blockbuster Video was the winning choice when streaming first launched? Some jokers just never get it right, okay? GLTA and best wishes for continued success!
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