As I’m sure you’ve noticed, this isn’t my typical blog post. I am trial running a new series of posts which I will just discuss any general topics that are too long for Twitter. The impetus of these articles is that I feel like I have commentary I want to add to any number of topics, but they don’t fit the typical style of my analysis posts. As such, these will be much shorter and informal posts covering a wide range of topics. These could be general micro-cap tips, stock analyses, general investing topics, or (a personal favorite) mini rants!
I’ll lead off each article with a list of any of the stocks I want to discuss. That way you know if you can skip a post 😊.
Now that that’s out of the way…onto the first one!
Topics discussed:
- $AITX
- $ALPP
- $SKAS
- $INVU
- General Snippets
AITX – Huge Day for the Share Price
To my AITX investors, unless you’ve been living under a rock, you must have noticed the share price had a HUGE day in the market today. By my count, the share price was up around 45% which is the highest single day gain in, well, a long time!
I tweeted about this, but let’s all take a deep breath with this one. The OTC works in mysterious ways. Today we saw a massive price increase that was not coupled with any press releases, news, etc. Take that as you will, but in my mind, people need to be careful when buying (or selling) during a volatile price period like this.
Conventional logic would say that a share price is constantly trying to find its fair market price through daily swings as macro level and micro level information becomes available. In the OTC, these daily swings can be larger than those in a blue-chip stock. But 45% is a huge swing for a single day without news.
What are some possibilities for why the share price moved so much?
Well, the most obvious is someone is (or many people are) loading up on shares ahead of the 10Q being released around January 15th. One syndrome I’ve noticed in the OTC is that people trade on news regardless of what the news is. The CEO of AITX has practically told us many of the key metrics in the 10Q already, so I don’t know why today of all days someone decides that AITX is a 10-bagger because it’s forecasted to have its best revenue quarter ever.
My main hypothesis then is that traders are picking up AITX for the sole reason of there being news upcoming (the 10Q), without regard for what the news is.
Another reason I’ve heard is that the share price was oversold near the end of the year due to tax lost harvesting. While that is a valid reason, it doesn’t really explain why the buying TODAY happened. The share price was extremely deflated on December 31. Anyone who was tax loss harvesting has to wait 30 days to buy back in. Meaning those people can’t buy back in yet. So why weren’t long term holders buying on December 31st instead of today? So many mysteries!
The final scenario, also very likely, is that some clever people have figured something out about AITX that went way over my head and are buying up shares! Always a possibility!
Long and short, be careful out there AITX people. Stick to your guns, know your entry and exit prices, and don’t panic buy or sell.
ALPP – Back Above $2!
ALPP is now back above 2 dollars per share which I know the discord was very happy about. I don’t have a position in ALPP yet, but I will not lie to you I am eyeing the dip it has been on. I’m not sure how sustainable the current price is though. I think ALPP is going to need to show some concrete results out of its acquisitions from 2021, especially the Stabilizer companies like Alt Labs, before we start seeing more confidence in the company.
Right now, we’ve only seen glimpses of what the company can become. But we need the company to start showing it in cold hard financials. The 10k will be very telling and I’ll be doing some in-depth articles on performance after it’s released.
$SKAS
I’ve never actually written about them before, but one of my favorite micro caps is a company called Saker Aviation Services. They operate the helipad in south Manhattan that all of the Roy’s take off in their helicopters from in Succession btw. They also provide aircraft services at a small airport in Kansas, but that’s not as sexy!
This stock is extremely illiquid, and I was able to pick up a nice buy order today. Liquidity has fallen off a cliff now that things have settled down from their latest 10Q which saw hype, followed by a drop right back to where it was.
I’ll keep accumulating this. I’m not afraid of Omicron and the effect on NYC tourism. The mayor just said they won’t lock down, so I sort of have to take that at face value 😊. I personally think it’s oversold, but not financial advice of course. They have a clean balance sheet, a lot of cash, a lean operation, and survived the hardcore COVID lockdowns. I’m betting they’ll be back strong in summer 2022.
Hopefully Arctic Fox Capital, the literal only other $SKAS investor I know of (shout out to @ArcticFoxCap on Twitter) has been able to navigate this rough liquidity and accumulate as well!
$INVU
I was bored today and flipping through my screener and landed on this company $INVU. I’m in the early stages, but they intrigue me for good and bad reasons. They sell some financial tools that aggregate news, etc. which is pretty cool. But they also have been investing heavily in Bitcoin mining which is usually a hard pass from me.
However, they have been absolutely printing money the last three quarters due to some big expansions in business. Like they are trading at 5 times their forward P/E which is insane for a company with that level of growth.
The most glaring thing I noticed was their CEO just resigned for having criminal and civil charges filed against him which is always fun 😊. It was from something he did with a different company, so take that as you will.
According to the article below, him and some partners were alleged to have owned a fake investment company and fraudulently claimed that they owned stocks that had class action lawsuits against them. Basically, Company X committed fraud, had a big class action lawsuit against it, and had to payout millions to shareholders. The CEO allegedly falsified that his investment company owned stock in that company and received payouts from the settlement, except they never actually owned it.
Read more here:
https://patch.com/new-jersey/middletown-nj/monmouth-beach-man-indicted-securities-fraud-charges
I know I am missing something with this company and will keep researching. INVU gang, let me know if you have more insight and I’ll keep working in the meantime.
Final General Snippets
I’m currently overweight microcaps in my portfolio, so I’ve had to slowdown big time the amount of buying I can do. Instead, I’ve just been buying index funds, BORING. I never stop looking for companies though.
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Hope you enjoyed my ramblings, and thanks all for reading!!
DISCLAIMER – I CURRENTLY HOLD A LONG POSITION IN $AITX and $SKAS. THIS ARTICLE IS NOT FINANCIAL ADVICE AND IS INTENDED ONLY FOR EDUCATIONAL AND/OR ENTERTAINMENT PURPOSES. AT THE TIME OF WRITING THIS ARTICLE, PERSONS AFFILIATED WITH THE COMPANY/COMPANIES ANALYZED ABOVE MAY BE PROVIDING MONETARY COMPENSATION AS MONTHLY PATRONS THROUGH MY PATREON. THIS COMPENSATION IS NOT PROVIDED IN RETURN FOR ANY SERVICE, WRITING ABOUT A PARTICULAR TOPIC, AND/OR FAVORABLE OR UNFAVORABLE OPINIONS. MY PATREON SUPPORTERS HAVE NO INFLUENCE ON THE CONTENT OF MY ARTICLES.
