SOS LIMITED: SHORT REPORTS --- TO THE GREAT RECOVERY
BBC Capital LLC would like to inform all SOS shareholders that we are looking to enter a large position for SOS Limited (SOS). We believe SOS limited is worth a current fair evaluation of $4.90, with a 6-month price of $12.
After much speculation, and lots of research, we feel it is the perfect time to go long on SOS Limited.
We have gathered a fair amount of data regarding share holder sentiment, short seller manipulation, and company fundamentals and operation procedures. With a rebound crypto currency market, we believe this will send a direct ripple effect to all crypto miners, ultimately benefiting SOS Limited (SOS). (MARA) (RIOT) (HUT)
With that being said, let’s breakdown the facts that helped us come to this decision.
SOS Limited News:
SOS Limited is looking to further their operations into North America, by a joint venture with Niagara Worldwide. We should hear the confirmation of this deal soon.
We are awaiting Q2/Q3 Mining Results, which we believe should be coming very soon. Yes, SOS is still mining Ethereum. Some Social media pundits have claimed to have tracked an SOS Limited wallet which shows current mining of Bitcoin and Ethereum, even with Chinese sanctions. We will not put that here as we have not verified it ourselves.
SOS Limited (SOS) currently has: 400 million in Cash
400M/178M Shares= $2.25
Insurance Revenue 54M+ : $.30
Crypto Mining Revenue: $ .45
3.5 BTC/ Day = $48.6M (as of present-day value)
41 ETH / Day= $34.3M (as of present value)
Expected to have Revenue beat by 400% 2021 according to previous reports
SOS Fair Value: $4.90
These are annual estimates *
Of course, with the soon to be meteoric rise of Crypto Currencies, we will see larger returns in the future. On top of this, SOS limited (SOS) is set to release an exchange they had mentioned earlier in the year. The finalization of that exchange was to be set for Mid-year, or anyday now.
The fees generated for this exchange should be estimated around 20-30 million annually, with the possibility of even greater returns.
SOS Limited (SOS) Short Interest Increasing
The chart above shows that with increasing retail volume, short sellers are frantically doubling down on their short positions. Usually this is done as an attempt to suppress the stock even more. It creates violent movements, and extreme price swings. This is a deadly game to be caught up in if the cards turn out of your favor. Currently, the favor is in the Short Sellers hands.
However, Short Sellers can easily be pushed out with a bull rush of large share purchases on good news or PR, which we believe may be coming soon based off past PR and research.
This increased short volume could also be relative to short sellers covering their positions in the $2.50 range.
SHORT SELLER REPORT AND SHORT INTEREST (VERY IMPORTANT)
For starters, let’s address the Elephant in the room. Short sellers have been decimating SOS Limited (SOS) for the past 6 months. It seems that a group of short sellers drove the price up to a 52-week high of $15.88 earlier this year on a Crypto Currency fueled tear.
This was convenient timing to enter a short position on SOS Limited (SOS) since it was experiencing a “blow off top” or “short covering”. Meaning, the benefits on the way back down were outlandishly ridiculous. Millions to be made.
So, who are these Short Sellers with Positions in SOS Limited? Well, we know that Hindenburg may still be short SOS.
Now, one can speculate if Culper Research is still short SOS Limited, but it seems recently they sold some of their position mid-July. So, they could be switching long, or exiting their gold mining operation in fears of a positive news event.
Another fund to be very concerned with is “Anson Funds” out of Toronto, Canada. Now, you may recognize Anson Funds from previous companies they “Bailed out” or lent money to. These companies consisted of (GNUS), (TLRY), and many more.
Now, if you look at the history of when Anson lent support to these companies, you will notice a very interesting Phenomenon. Every one of those stocks dropped over the next few months. The exception being Tilray (TLRY) which had an amazing short covering to $100+.
Of course, one can blame this on underperforming financials as the cause for these downtrends on the other tickers. Either way, it is quite ironic that several positions Anson takes in their “bailout” fashion, only seem to bail out Anson funds to a tune of 50M+ in profit. (Moez might take that as an insult because he probably netted more than 50M)
Moreover, Hindenburg Research has always had a very timely follow up with a nice “Short report” of their own as soon as Anson Funds is involved with certain companies. Makes you wonder, why would “the great Nate” the fraud hunter of Wall Street enter into positions that he sees Anson Funds entering? Is it because the two work together (Anson and Hindenburg) with “non material” information, knowing they will make a killing on a short position, or is it truly for the betterment of the overall market to minimalize certain market caps for particular companies?
Remember, Hindenburg has a motto of “Popping bubbles as they see them”. Hypothetically, if you have a buddy creating an artificial bubble on a stock with “leaked” news reports about a company and their future potential, it’s easy to pop that bubble when you know some of the facts surrounding the statements about the company aren’t true. However, that scenario can be played off as purely “retail hype”. These bits of information are merely a rumor swirling social media, right?
Well, that would beg to ask the question “How are these micro-cap stocks gaining so much sudden media attention”? A very simple answer, paid social media promoters and paid for articles. You scratch my back I scratch yours. These social media voices on Twitter, StockTwits,Reddit, and SeekingAlpha will give out tidbits of information regarding a company to grab retailers attention. They will then let the stocks run up, so they trend momentarily, which gets more people to join in. They do this so it adds volatility to the stock, it makes the options look appetizing, and it also helps them hide their extremely large short covering, or to grab a better position at the top of the frenzy. Ultimately, crushing the retail investor in their path, "For the bettering of the market".
What does this mean for SOS Limited?
So, that brings us to SOS Limited (SOS) and why this is important. Anson Funds has less than 9.99% shareholder stake in SOS Limited, which means they do not have to report a short position. Anson Funds, Moez Kassam, the not-so-great Houdini, is known for short selling. This is how he made his money from the start. Sort of a pessimistic approach to the stock market if you ask me.
Now, take a look at when Anson Funds entered SOS limited (SOS) below;
This SEC document should help explain the massive, short interest, short selling, and random media hype. Anson Funds had a warrant exercise agreement this year February 22nd. Guess what happened 3 business days later, Hindenburg comes out with their “Short Report”. Price drops 30%, which is “Conveniently Ironic”.
Just to help you understand more clearly, the last time this happened was on GENIUS BRANDS (GNUS), in which Anson Funds had business dealings with the company and Hindenburg came out with their report, “A bag holder’s guide to why we think Genius Brands will be a $1.50 Stock Within a Month”
This same wording was used by Nate Anderson in a tweet back in April when SOS limited (SOS) experienced an extreme volume surge and price movement around April the 8th. Nate tweeted, "Sweet baggy Jesus" in regards to the short covering attempt on SOS Limited. Clearly, he has a dog in this hunt, and does not want to see a short covering of any sort. He now believes SOS shareholders will be stuck with their bag for life, as he gave SOS Limited a $0 Price Target.
Following in the footsteps of Anson, Hindenburg and the crew were able to rake in a nice profit on retail shareholders.
Continuing...
Hindenburg claims that SOS limited (SOS) is a shell company that is merely a small insurance lead generator. Now, we are not here to say that this is not true. SOS Limited’s main revenue stream is their Insurance marketing business according to SEC documents.
We believe that Hindenburg followed the footsteps of Anson Funds into this trade because they know how Anson Funds operates, they know that they will short this stock to the ground. “Elevator up, stairway back down”. The stairway backdown motto works better because you make a hell of a lot more profit on the weekly options and stroking every dollar from retailers who believe in the long-term potential.
In Summary, for past manipulation on SOS Limited (SOS) I would not lay the blame on Hindenburg Research. They had a very easy job finding the research for their initial short report. We were able to find where they got all their evidence in 3 days, making many phone calls. In fact, I would point the finger at SOS Limited management for having business dealings with a known short seller (Anson Funds). It is easy for Hindenburg to short a stock they know is going to be crawling with short sellers.
FURTHER DETAIL ON SHORT SHELLING OPERATION $ .77
Do you guys ever wonder why the massive “walls” or “asks” usually come from the EDGX exchange. Who trades using the exchange? Is it Anson Funds?
You ever ask yourselves, why do most Social Media accounts for SOS Limited come out of Canada? It seems the Canadians have a better idea of what’s going on in China then the Chinese even know.
When you start to connect the dots, you will realize that it seems you are in the Midst of one of the largest Short selling operations in the market. How is it a stock like SOS Limited (SOS), being one of the most held stocks on Robinhood, is beat down so bad. Every week for 16 weeks, there has been 1 green day to every 4 red days, or so it seems.
Now, when you add market sentiment to the equation, which currently is, “Don’t buy Chinese stocks” You see how easy it is to shift blame of a downtrend on Chinese sentiment. It’s easier, to fool someone to believe the media is your problem, and not these entities that are shorting you with high speed algos. Hyping you with half evidence news pieces and selling you back down. Wash, Rinse, Repeat.
Overall, we believe SOS Limited (SOS) has the potential for a violent short covering. We believe these hedge funds are piling on their short positions, and it would take them roughly 2 days to cover all of them. With the backing of a retail push, SOS could see highs as close to $7 with some good PR.
What can we do to stop the Short Selling?
This answer is psychological nightmare. First and foremost, people need to stop purchasing call options. If you like a company, it is a reasonable approach to buy a long term ITM call, and shares.
Buying Weekly Calls is a death trap, not for you, but for everyone else who is heavily invested in SOS Limited (SOS).
Short sellers have been spiking the price to drive retail to buy their OTM call options. They are quickly recovering and raking in Hundreds of thousands, if not millions weekly off you. This is merely a psychological game until you break.
The short sellers have a goal of $.77. I’m sure you’ve seen the article “SOS to $77”. That is just hype to get you to purchase more OTM call options.
SOS Limited Future in Block Chain Technology
There’s a lot to look forward to with SOS stock in the months to come. Its plans to pioneer the crypto world’s financial services business, which could be a watershed event for the industry. It will also solidify the company as the most powerful Ethereum miner in the world. Some of these fintech services include insurance, crypto loans, mobile payments, crowdfunding and others.
It is tough to forecast how things will play out considering the short interest in the stock in terms of price. Short interest is high, which points to another short covering. It is tough to forecast how things will play out considering the short interest in the stock in terms of price. Short interest is high, which points to another short covering that could take SOS stock past its 52-week high of $15.88. The implied volatility is attractive for short-sellers, but I feel that it has the potential to be a long-term investment. (Farooque)
Risks: Claims of SOS Limited Shell company
As many of you are aware, Hindenburg claimed they believe SOS Limited (SOS) was running a shell game to move money around from LLC to LLC, or their “shells”. I am not going to disagree with them that SOS Limited has a very strange business mapping. We spent days on this trying to map it out and see what was legit.
Here’s what we found:
Faith Asset group, who is tied with Niagara Worldwide, who is the supposed seller of the Niagara, WI Warehouse for their BTC operations is no longer in operation. They failed to renew their business license. When you call Faith Asset group contact numbers, you receive a prompt that enters you into a $100 Gift Card. Now, if that’s what you’re looking for, give them a call. They are out of South Carolina. The other issue is the employees for Faith Asset Group and Niagara Worldwide where the supposed deal for Wisconsin is supposed to happen. We got into contact with 5 employees of Niagara Worldwide, and 1 person who worked out of New Jersey, but was familiar with the Niagara deal.
Of the 5 employees we spoke to, only 1 confirmed that they were still employed with Niagara Worldwide. He was their financial analyst. We asked him if he was familiar with SOS Limited, and he confirmed he was. We asked if he was aware of a deal for one of their properties for Bitcoin Mining operations, and he claimed he was not legally allowed to speak about it.
The other employees for Niagara Worldwide had not had positions with the company for a time frame of up to 7 years. So, it was rather strange they were still listed as “top contacts” for Niagara.
Eric Spiritas for Niagara is currently in court for a deal gone wrong regarding Finch Paper, LLC. This is the same company SOS Limited (SOS) is attempting to negotiate a deal with for Niagara Worldwide. (Could be to SOS Limited benefit if Eric is cash strapped).
Our associates were able to contact a man in New Jersey who was involved with the Niagara Worldwide property, we obtained his number directly from the Hydroplant Offices, and he informed us he knew about a deal for BTC mining, but that is all he could say at the time.
So, that leads us to believe there are financial agreements that still need to be made regarding the deal, and that would explain the radio silence.
We have a direct contact who lives in the Qingdao district, and she has informed us twice that SOS employees were at work, and she visited the Headquarters for us. We don't not get her down to the supposed mining facility, yet.
In regards to the other claims by Hindenburg, those have been easily dismissed as SOS Limited (SOS) has cleared them up in their most recent filings and reports.
In Summary:
We believe SOS Limited will be a strong performing stock for the latter half of the year. We think it shows many signs as a potential short "trigger" candidate, and many signs as a good long term growth stock.
With Bitcoin and Ethereum, in particular Ethereum, expected to 3-5x in the next few years we expect SOS Limited to have the necessary funds, management, and assets to expand their business and grow to a Multi-Billion Dollar valuation.
We believe there are also potential “Buy-out” rumors swirling around regarding SOS Limited (SOS) at a valuation price of $7/ Share. Remember, these rumors are speculative. The post for that article has since been removed.
SOS Limited will be transitioning to become a North American miner. They will flourish in the United States, and they are poised to add two more power plants to their crypto Currency operations.
They will have one of the worlds first Crypto Currency Insurance programs, and they are looking to have an operating exchange in the next month according to past reports from Krauss and Yang.
We need clarity from SOS Limited (SOS) management regarding a number of key issues. We want numbers, how they plan on executing their plans, and a timeline. This is critical for SOS Limited to gain the traction it deserves.
Disclaimer: We do not currently have a position in SOS, but we will be doing a large purchase in the next 72 hours. All opinions are our own and in no way is this financial advice.
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