All of my followers know that I have been bullish on SOS ever since February. It's been a battle against the bears and it's not like they don't have any valid points about this company's transparency, but I just hate having to see this stock go down even after good news.
Today's catalyst was SOS is issuing new warrants to raise capital for their Crypto Mining Operations, thus diluting the stock and investor interest.
Anyway, I just hate having to see the price teeter totter because it gives me less TA information to work with. All I can do is draw a new resistance point at $4.50.
There's not much fundamentals to work with either due to the fact that this company has only re-branded itself just recently, and the Crypto Industry as a whole is still highly speculative. But if you're here looking for reassurance, and you are still holding onto SOS like am (I'm down 50%) this is what I have to say:
Fundamentally this Chinese company hasn't proved itself to be a ten bagger, yet. Personally, I believe this company is totally overvalued due to the limited information available, but I also believe this company is undervalued compared to the competition. Additionally, the number of shares outstanding for SOS stock are low in comparison to say RIOT and MARA which too are diluting their shares with warrants.
Best case scenario: SOS gets all of those 15.5K miners active, online, and operational by the end of the month. Then, hashing at an average-rate fast enough to mine 41 BTC (353 Peta-Hashes/s) and 909 ETH (707 Giga-Hashes/s). At the current price levels today, that would be equivalent to about : $4055200 in mining revenue USD. - ( SOS's Expectations: service.sosyun.com/sos_en/news_list_210315.html ) by the end of Q1.
But then let's also say the price of BTC and ETH remain around these price levels for the rest of the year (which I doubt). That' would be 20 Million (more or less) in revenue for the year 2021. Because I'm bullish on crypto as a whole, I am fully confident that SOS will outperform expected earnings. Only time will really tell. I can see SOS hitting $20 by the end of the year, but I can also see it going down. And at that point I will continue to hold and buy more unless there is concrete evidence that SOS Limited. is indeed a fraud and it'll just be an expensive lesson for everyone to remember.
I apologize if this wasn't reassuring enough, but as intelligent investors we have to stick with facts and not stimulation. Of course I wished I had waited just an extra month before I had jumped in and bought a large amount of SOS stock, but I do not regret it.
I would love to hear other people's opinions in the comment section.
Comment
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I liked that we saw a bit of a Bullish Engulfing pattern by the end of the day.
thank you for the insight. i'm figuring out my position.
GratefulGains
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i've been in since early February and went through the Pump up sold %20 of my shares, made my initial investment, and took a small profit. As of now I am sitting in all profit. I'm still bullish on this. I would love to have some liquid to buy up more shares, especially with that sub 5 dip today. But I'm in some long plays (aka i'm not selling at a loss)
I understand it is a chinese company, but with that came a lot of FUD... I mean a lot. Which they came back and released videos and updates now. I think SOS will work its way back up to above $10 on some positive news, as of now it is a little tarnished. I believe it was an attack by short sellers to drive the price down. I don't say that as a catchy word, look at the short % in late feb/early march.
As far as technicals, I have a lower support/resistance point around 4.35 (looking through feb) and then it drops to about $2. charting SOS has been difficult, for me, due to volatility. I agree with your elliot wave end point, and favorable news comes back and everything "looks" legit, SOS will be above 10 again.
I'm going to be waiting with my shares for about 3 months. After that I think I'll be out.
SPADESASSETS
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@jessecolenewsom, Yeah honestly why short SOS right? The stock would need to hit 0 in order for the short sellers to make a reasonable profit. That video gives me hope because I like how SOS isn't worried about using capital for a fancy facility, they are being cost effective by spending on what gets the job done, not what looks cool.
GratefulGains
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@SPADESASSETS, It is chinese based and there was a recent release of some fake chinese companies on the stock market, or some netflix documentary. So, why not ride the wave of FUD and push some shit out while betting that it goes down. Seems costly, but it worked. lol, i feel like i sound like a conspiricy theorist, but so much FUD and people out there were echoing it. society is weird!
lt_jimDangle
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Will the release of eth2 negatively impact sos SP
SPADESASSETS
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@jvanhise7, ETH 2 is an update to the existing decentralized protocol so I don't see how it could negatively affect SOS. If anything it would benefit SOS a ton. SOS will be a big ETH Stake holder along with other miners. So, SOS will receive staking rewards just for holding ETH and contributing to the network (basically free money that won't require additional energy on their end).