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In the 12 months from end of Q3 2019 to end of Q3 2020, they moved from a net debt of $11.6m to a net cash positive of $1.1m. This includes with 30 days of lost activity in the first lockdown, plus all the global effects of the pandemic. I think this is very impressive. The larger shareholders have been vocal in their calls for share buy-backs or dividends. I agree with the boards decision to hold-off on them up until now and instead use their strong cash generation to move from a net debt position to a net positive cash position. But now that GEMD have tipped over to being net cash positive, I would expect to hear about share buy backs or dividends from here. Personally, I can see ÂŁ200m market cap being hit when that happens.
GEMD still looks very undervalued at current levels to me.
As a peer comparison, GEMD have higher revenues and a much stronger net cash position than LUC, yet LUC market cap is 3x that of GEMD.
I think GEMD share price could move up very quickly when the wider investment community catches on here.
Looking very strong this morning.
https://www.youtube.com/watch?v=zG4IUHVN7bM
Video worth a watch.
DeFi is the future.
Market cap here now only ÂŁ4m.
Astounding.
Market cap still under ÂŁ5m here, despite all the increased sector sentiment. Should see another leg up soon IMO.
I think there will be some investors moving from ARB to OBC this morning after seeing the alarming rate of drop in ARB mining capacity. 96 coins in December compared to 337.5 in February. Much better to own your own cryptos and blockchain techs IMO.
Excited about OBC starting their own DeFi projects as well...
https://www.entrepreneur.com/article/360815
My comments weren’t directed at your post so apolologies if you thought they were. Market makers may play dirty games in hiding / delaying trades, but nothing to do with OBC as a company.
Solid start this morning, but still expecting further rises from here. Natural to pause a few times to let some on and off along the way.
They’ve all taken a position in ARB and seem to see deramping every other crypto play as a way of defending / promoting that position. They may have even also very foolishly taken out a short position on OBC. Either way, it is frustrating to watch all the rockets and booms around ARB without any risk highlighted, while in the same breath they deramp OBC without any justification. I think they are worried that investors will realise ORB at £5m is a much better crypto play than ARB at £100m.
ARB mined 337.5 bitcoin in February 2020. That steadily dropped all the way to 115 in November 2020 and is set to have dropped even further to around 100 for December 2020. That is for the same computer power and costs as in February and is because of the ever increasing complexity of the bitcoin mining algorithms. They would have to more than triple their computing power and mining costs every single year, just to keep up with a constant rate of mining. No company can sustain those kinds of spiralling costs longterm, regardless of bitcoin price. The ARB director knows this, which is why he sold 1.4m shares last week. The ARB holders shamelessly posting rockets and unicorns on twitter know this and will be selling out on the next spike while less experienced traders get sucked in.
I will try to ignore them as much as I can Aba, but it is sometimes hard to sit back and watch those kinds of tactics in action.
Yes. Like every sensible investor I take some off the table when a stock I’m in rises 100s of %, but I plan to keep a large holding longterm as well. Most of my portfolio is slightly boring ETFs and main market stocks, but the odd AIM stock really grabs my attention. OBC has done that. I really think cryptos and blockchains are the future and I’m excited about the opportunity in OBC from here. I think it has every chance of going on a long, sustained run. It still looks way undervalued to me at the current £5m market cap.
Much better to develop and own cryptos than mine someone else’s IMO.
Bitcoin miners have seen their mining numbers reduce so much over the last 12 months by ever more complex mining algorithms that they would have had to increase their computing power by 300% in that time just to keep pace with the algorithms. And they are only going to get harder.
OBC are very well placed with their own cryptos increasing steadily in value instead IMO.
I wouldn’t get concerned about anyone criticising OBC for not being a bitcoin miner.
Plus1coin developed and owned by OBC
It’s also not OBCs only fully owned crypto. Plus1 is another for example. That has a market cap of $750k on its own. Again, early stage, but increasing all the time. Up over 300% and rising.
And all of it is compared to OBCs tiny overall market cap of only £5m. It’s massively undervalued IMO.
Sure, it’s early stage, but it’s 100% owned and controlled by OBC, and its value is increasing all the time.
BRAZ jumped up 40% in the last 24 hours.
Bitcoin pushed through $34k.
This is getting properly exciting now.
It is never my intention to deramp another share and I hope that ARB and OBC both do well out of the increasing sector sentiment. I know some on here hold both shares and I wish you well. But some of the other ARB holders (mainly on Twitter) who seem intent on defending their ARB position by deramping OBC simply haven’t researched OBC. Some of them don’t even seem to have researched ARB either. Yet they want to coax investors with an interest in crypto over to ARB by trying to criticise OBC. I think it is therefore reasonable for an OBC holder to defend their reasoning for choosing OBC over ARB.
OBC for me is just getting started. And from current levels, I think it could surprise a lot on the sidelines with how quickly it rises.
2/2
OBC has so much going for it that it could explode up from its current ÂŁ5m market cap.
As per previous posts, unfortunately that will always attract some critics, but they are barking up the wrong tree with this one.
Lots of ARB holders seem to be deramping OBC in an attempt to promote their share and coax investors with an interest in crypto across there. I find this behaviour very ugly, but it has made me want to respond by highlighting why I chose to avoid bitcoin miners when I wanted more exposure to cryptos and blockchains in my portfolio. Instead, choosing to invest in cryptos directly and in OBC.
Crypto mining is fraught with difficulty and the control is completely out of the miners’ hands. The mining algorithms are made progressively harder to negate for increasing computer power and to limit the flow of new coins. This happens in small amounts all the time, but the owners can also step it up whenever they want. They last did this for bitcoin on 17th November, which instantly resulted in ARBs mining productivity dropping a further 20% (see Dec 3 RNS). Their monthly mining numbers have dropped by over 60% this year alone (see progressive monthly RNS updates for 2020). They will get a bit more computing capacity (at more cost) in March, but until then, their mining numbers will continue to drop. Watch when December mining figures are released this week. ARB has risen by a similar percentage to bitcoin over recent months, but is a much more risky play than just buying the crypto currencies directly. If bitcoin price drops, ARB drops. If bitcoin price continues to rise, the owners will just makes the mining algorithms much harder again, making it slower and more costly for ARB to mine. Mining it is a constant battle against the ever increasing algorithm difficulties. The crypto owners have complete control.
OBC on the other hand fully own their cryptos and blockchain techs so have complete control over them. They will also directly benefit from increases in the more mainstream cryptos like bitcoin through their other components, like freefaucet. Here, users get rewarded in cryptos (including bitcoin) for online activity. OBC make money from it through advertising revenues and user membership subscriptions. Revenues from this were already increasing before bitcoin took off and it will undoubtedly be even more popular now.
Bitcoin price increases are good for OBC because freefaucet revenues will benefit, but mainly because it’s a marker of sentiment in the sector. The values of all OBCs fully owned cryptos and blockchain techs are rising massively as sector sentiment increases. This is why I chose to invest in OBC when I saw the crypto sentiment rising, instead of miners who are completely at the whim of the crypto owners changing their algorithms. OBCs fully owned cryptos are already each up 100s of percent as sector sentiment has increased over recent months, and they are continuing to rise.
1/2
Bitcoin price just pushed through $30k.
As a marker of sentiment in the sector, that is very significant.
OBC looks very strong for a further rise from current levels IMO.
So much going for it for such a low market cap.
Happy New Year all.
Reasons to support a further big rise in OBC:
- Market cap still very low at ÂŁ5m (50p share price).
- 18% share in ADVFN alone is now worth ÂŁ1m and rising. ADVFN share price rose 70% last week.
- ÂŁ400k cash following recent placing, enough for 3 years runoff at least.
- No debt.
- Freefaucet was only setup 18 months ago and is already revenue producing. User numbers and revenues are increasing all the time, enhanced by growing interest in crypto currencies. Users earn crypto coins (including bitcoin) for online activity, so it’s only natural that user numbers (and OBC revenues) will grow exponentially as sentiment in cryptos increases. This setup produces revenues at 100% gross profit margin and looks set to be a very valuable asset for OBC going forward.
- Development and ownership of several different cryptos and blockchain techs, including DeFi. This is by far the most exciting and valuable component of OBC for me. Cryptos and blockchains are increasingly being accepted as the future. Bitcoin is now pushing $30k and continuing its march north. This shows how strong sentiment in this sector is and the ongoing direction it’s going. The value of OBCs offerings are increasing all the time and any one of them could quickly take off and become much more mainstream, which would be an absolute game-changer. OBC-owned Plus1 coin is one example that is already making moves, having risen 500% in value between mid October and Christmas.
- BOD have considerable skin in the game with over a 40% share holding between them. They also keep the overheads incredibly low.
For me, OBC is still way undervalued at 50p / ÂŁ5m market cap and easily has enough reasons to justify pushing north through the 100-150p / ÂŁ10-15m market cap range, possibly further depending on Q1 updates.
Sentiment in cryptos and blockchain is soaring and OBC look very well placed to capitalise on that.
This is the drop on opening as expected.
Now I expect it to be bought back up.
ADVFN up another 25% this morning already.
Bitcoin and crypto sentiment continuing to soar.
This goes higher from here IMO.
blame shift work...