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COIN Ready To Run?In looking at the progress for Coinbase, it appears that NASDAQ:COIN is setting up nicely. With the euphoria around Bitcoin mining in the USA and the Bitcoin prices rising along with other Cryptocurrencies, Coinbase could potentially be ready to rise as well. The current forecast for Coinbase is at $345 per share which is a fair value considering that it has positioned itself as a leader in the industry with their trading platform, their wallet, their exchange platform and their ability to make the entrance into the crypto space seamless and easy to understand with their learn portion of the app. Currently NASDAQ:COIN is testing prior support/resistance areas and once it breaks through them, it should continue to make its way higher with time. The company has a great deal of cash in case of a down turn which will allow it to build out more research and design, and acquire new projects as they present themselves. This company has over 19% company directors owning it, which is a great sign that they have skin in the game and expect it to do well for themselves as well. I take that as a bet on the company. The statistics for NASDAQ:COIN has a market cap or net worth of $67.78 billion. The enterprise value is $64.55 billion. In which the company has $7.72 billion in cash and $4.50 billion in debt, giving a net cash position of $3.23 billion or $12.89 per share. Return on equity (ROE) is 21.32% and return on invested capital (ROIC) is 7.66%. In looking at the public sentiment for Bitcoin and a more stable system than an inflated fiat, and the versatility of the crypto currencies, people are looking to Coinbase to allow them the ability to exchange and hold their Bitcoin and other currencies. In looking at the charts, the time frame continuity has shown this stock to be up over the year with plenty of upside. It gapped up after the election results and that gap will need to be filled to fill all those open orders from that time period but, who knows when that pull back will come. It is in an uptrend at the moment.
NASDAQ:COINLong
by GlennTrading
Why MSTR Could Hit $350 by April 2025Why MSTR Could Hit $350 by April 2025 MicroStrategy (MSTR) has positioned itself uniquely in the financial landscape by heavily investing in Bitcoin, making it not just a tech firm but also a significant player in the cryptocurrency space. Here's why MSTR might reach $350 by April 2025: Bitcoin's Performance and MicroStrategy's Strategy: Bitcoin has been on an upward trajectory, with recent spikes fueled by events like political developments (e.g., Trump's crypto-friendly stance). If Bitcoin continues this trend or even surpasses expectations, MSTR's stock, which acts almost as a leveraged bet on Bitcoin, could see substantial gains. Analysts have noted a strong positive correlation between Bitcoin's price and MSTR's stock value, sometimes suggesting a premium on MSTR due to its Bitcoin strategy. MicroStrategy's Bold Bitcoin Acquisition: Recent posts on X have highlighted MicroStrategy's commitment to the biggest Bitcoin buy ever at $42B. This aggressive accumulation could signal to investors that MSTR believes in a significant future value increase for Bitcoin, thereby potentially boosting investor confidence in MSTR shares. Market Sentiment and Institutional Interest: There's growing institutional interest in Bitcoin, which benefits companies like MicroStrategy. For instance, South Korea’s National Pension Service's investment in MSTR indicates a broader acceptance of crypto through established companies. Such moves could lead to increased demand for MSTR stock, pushing its price higher. Inclusion in Major Indices: Discussions around MSTR's potential inclusion in major indices like the S&P 500 could significantly boost its stock price. If MSTR becomes eligible for such an index due to its market cap or liquidity, it would attract more institutional investors, driving the price up. Earnings and Accounting Changes: With the adoption of new accounting standards allowing for digital assets to be measured at fair value, MSTR could report more favorable earnings. This could lead to a re-rating of the stock as the market recognizes the true value of its Bitcoin holdings, potentially pushing the stock towards the $350 mark or beyond. Bullish Predictions and Analyst Upgrades: Analysts from various platforms have shown optimism, with some forecasts indicating that MSTR could trade between $175.94 and $310.25 by 2025. While these aren't exact to $350, the sentiment is clear: there's an expectation of significant growth. Supply Shock from Bitcoin Halving: The Bitcoin halving event, which reduces the reward for mining new blocks, historically impacts Bitcoin's price positively due to the reduced supply growth rate. If this event leads to a substantial Bitcoin price increase, MSTR's stock should follow suit. Macro-Economic Environment: If the global economic environment continues to favor alternative investments like cryptocurrencies, MSTR, with its Bitcoin strategy, stands to benefit. Lower interest rates or inflation fears might drive more capital towards assets like Bitcoin, indirectly benefiting MSTR.
NASDAQ:MSTRLong
by NYRUNSGLOBAL
KULR-Thermal management technologies companyKULR Technology Group Inc develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components. The company is focused on targeting the following applications: electric vehicles and autonomous driving systems; artificial intelligence and Cloud computing; energy storage; and 5G communication technologies. News from 02/10/2024: KULR Technology shares are trading higher after the company announced it secured a $2.35 million licensing deal with a Japanese corporation. The deal includes a $1.1 guaranteed licensing fee and the potential upside for equipment sales and upgrades. KULR also works together with bigger companies like: TSLA, GM, NASA, LMT, Overall Market Sentiment: It’s always crucial to consider overall market sentiment when making trading decisions. Breakout Zone: $043 - 0.45 Resistance Points: $0.55 $0.70 $0.85 Surpassing these levels could signal a positive trend. Consider taking profits at these levels to realize gains. Trading Strategy: Entry: I would wait after ER has been released on 13th of November 2024 and watch the $0.43 - 0.45 key zone for a breakout and possible retest of it. Take Profit (TP): Set a target at $1.00 Stop Loss (SL): Set at under $0.25 to mitigate potential losses. Chart Analysis: Please refer to the attached chart for detailed analysis of price trends and movements. Trading Advisory: Exercise caution and consider market conditions and your own risk tolerance when trading. It's advisable to conduct comprehensive research or consult with a financial advisor before engaging in trading activities. Disclaimer: This content is for informational purposes only and should not be considered financial advice.
AMEX:KULRLong
by meitshels_smell_trades
Tesla - Cup and HandleWell it's been a long and slow process for Tesla to get to this point and with so many problems and so much potential it doesn't take much to keep investors interested. Though for everyone buying, somebody is selling. So as October nears with the Robo-Taxi reveal, even though a true and perfected version of the FSD Technology may be 3 years away for these to be road tested and verified we can have hope and a little excitement for the Journey. As well Elon Musk does like to pull a rabbit out of his sleeve once in a while and it certainly has been a while. We shall see. In the meantime however the chart is showing a massive Cup and Handle Pattern with a recent breakout and closing in now for a potential retest at $260 and a long term target price at $328. Is the target for this year or perhaps next year, that I can't answer for you but I'm going along for the ride.
NASDAQ:TSLALong
by grahammk
5
Kohl's Corporation: The next short squeeze?Overview Kohl's Corporation, a U.S.-based retail giant operating in 49 states, has seen stagnant performance in recent years. Like traditional department store chains, Kohl's has struggled to grow revenue, facing competition from online retailers and shifting consumer preferences. Despite this, the company maintains significant cash flow and profit margins, offering an opportunity for activist investors to unlock value through operational improvements, asset monetization, and strategic financial maneuvers. Investment Thesis Kohl’s is currently undervalued due to the following factors: High Dividend Yield: Kohl’s offers a dividend yield of approximately 11%, which is fully covered by its free cash flow. This high yield has led to high costs for short-sellers, who must cover both the dividend payments and the borrowing fees, thereby increasing short interest risk and making a short squeeze more likely. Short Interest and Potential for Short Squeeze: Approximately 35% of Kohl’s free float is sold short, which is unusually high. As seen in past short squeezes in the market, such high short interest can catalyze upward price pressure, especially if the company demonstrates any positive financial or operational developments. Asset-Heavy Balance Sheet: Kohl’s owns two-thirds of its retail locations and real estate. The market value of these properties is estimated to be at least four times the current stock market valuation, representing significant latent value. Monetizing these assets, whether through sales or leveraging for additional liquidity, could create substantial shareholder value and provide capital for operational improvements or share buybacks. Activist Investor Involvement: Recent activism has brought in investor demands for more aggressive management strategies to enhance shareholder value, including buybacks and property monetization. Key Points for Value Creation Asset Monetization: Kohl’s real estate portfolio is an undervalued asset on the balance sheet, with depreciated values far below market worth. A partial sale of properties could allow Kohl’s to raise substantial funds, enhancing financial flexibility while potentially retiring a portion of its debt or funding share buybacks. Dividend Stability and Potential Buybacks: While the high dividend yield supports Kohl’s appeal, the company could further boost its stock price by initiating a robust share buyback program. This strategy could create pressure on short-sellers by reducing available shares, thereby increasing the likelihood of a short squeeze. Management Realignment: A new CEO, appointed two years ago, has already started strengthening the balance sheet by paying down debt. Activists have proposed further buybacks and asset monetization, which could unlock shareholder value and signal stability to investors. A tender offer, in which the company buys back shares at a premium to the market price, could accelerate short-seller pressure, potentially leading to a positive feedback loop that raises the stock price. Catalysts and Downside Risks: Kohl’s rejected a takeover offer in 2022 in the $50-$60 per share range, suggesting that the stock may be significantly undervalued at current levels (around $17-18). Given the substantial short interest and Kohl’s stable financial position, an acquisition proposal could re-emerge, or an activist’s push for operational changes could provide substantial upside. However, if the dividend is cut or operational numbers weaken, the stock could see additional short-term pressure. A temporary dip could offer buying opportunities for those with a longer investment horizon. Financial Position Debt Structure: Kohl’s debt is manageable, with limited near-term maturities. Lease obligations make up a portion of the debt load, while bank debt due next year has been partially paid down. The remaining obligations are spread out until 2029, reducing financial risk from an overburdened debt schedule. Cash Flow and Dividend Coverage: Despite recent operational stagnation, Kohl’s free cash flow (about $600 million in 2022) is more than sufficient to cover dividend payouts and proposed buybacks. Even under a pessimistic scenario, where free cash flow falls by a third, the dividend could still be sustained, albeit with limited room for additional capital expenditure or shareholder distributions. Risks and Considerations Operational Decline: While the company has stable cash flow, revenue has been declining. A continued drop in sales, especially in a weaker economy, could strain cash flow and increase the likelihood of a dividend cut, which would likely lead to further share price declines. Dividend Cut Potential: A dividend cut would likely affect investor sentiment, especially given Kohl’s high current yield. While activists see the dividend as a valuable tool to pressure short-sellers, any reduction could deter income-focused investors. Short-Seller Resistance: With a high cost of shorting and substantial short interest, short-sellers may attempt to push the stock down further. However, significant real estate assets, coupled with activist interest, add a foundation of underlying value that could stabilize the stock. Price Target and Outlook Based on the above considerations, activists see a potential upside of 50-100% within the next 6-12 months, contingent on successful execution of asset sales or buybacks. The stock could rise from its current level of around $17-18 to a fair value range of $30-40 per share based on real estate valuation and improved sentiment. Short-Term Price Target: $25-$30, assuming stabilization and initial buyback steps Long-Term Potential: $40-$50, assuming asset monetization and strategic buybacks are fully implemented Conclusion Kohl’s represents a high-risk, high-reward investment, suitable for investors comfortable with volatility and potential short-term declines. With significant short interest, valuable real estate, and a history of activist involvement, Kohl’s has multiple potential catalysts to unlock shareholder value. Investors should be prepared for potential interim dips if the dividend is cut or economic conditions worsen, but long-term prospects are strong for those who view this as an opportunity to capitalize on an undervalued asset-heavy retailer. This information is for informational purposes only and does not constitute financial or investment advice. Always do your own research or consult a financial professional before making investment decisions.
NYSE:KSS
by marc_kober
MSTR: Is there any value here?MicroStrategy Incorporated ( NASDAQ:MSTR ) has a current BTC balance of 252,220, with plans released during the October ‘24 earnings call to issue both $21 billion in equity and $21 billion in debt to finance further BTC purchases through 2026. The question becomes, is there value here? If the price of MSTR becomes increasingly dependent on the price of BTC, then why not just buy the underlying asset? The latter can likely already be answered. The price is entirely dependent. As noted in the company’s earnings call and outlined in the excerpt from the CoinGeek article below, MSTR’s software business has taken a backseat as the company has completely shifted its focus toward its BTC plan. “On October 30, MicroStrategy released its Q3 financial report card, revealing a sharp decline in revenue from its (formerly) core business intelligence software business, while expenses and net losses saw significant increases. Software revenue for the three months ending September 30 fell 10.3% year-on-year, while the rising costs of that revenue resulted in a net loss of $18.5 million.” During the call, Executive Chairman Michael Saylor insisted that MSTR is not purely a BTC proxy. Looking at the price performance for the past year, you can see that MSTR has outperformed BTC by a multiple greater than 4. As markets tend to do, this is likely the pricing in of future acquisitions. Unlike ETPs (or people, for that matter), MSTR has placed itself in a unique position, with the ability to utilize the various avenues of capital markets to increase its holdings. While this is fundamentally opportunistic, the increase in shares dilutes existing shareholder ownership, reducing their proportional share of MSTR's overall equity. However, given the long-term potential appreciation of BTC, the value of the underlying asset may offset this dilution, ultimately providing greater returns despite the increase in outstanding shares. This is no different than any other growth-oriented company, albeit Apple, NVIDIA, etc., actually produces something. If the price of the underlying asset goes down, this further decreases the BTC value per share, leading to a potential point of clarity for shareholders asking themselves, “why not just own the underlying asset?” Looking ahead, I do think MSTR provides a unique opportunity. Inevitably, given the scenario described above, the stock will continue to face elevated volatility (something that the company has noted as a positive). Given future declines in the price of the underlying asset (presumably in 2026 and 2027), this allows MSTR to accumulate more BTC, reducing its cost basis and optimistically allowing investors to enjoy increased volatility to the upside yet again.
NASDAQ:MSTR
by PeakInvestmentStrategies