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Dec. 22, 2017, 10:34 a.m. EST

Here are seven new bitcoin-related stocks — most are bonkers

Applying blockchain technology to any industry could be a thing of the future, but the investing risks today are extremely high

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By Nigam Arora


AFP/Getty Images

The bitcoin frenzy continues.

After my post “Ride the bitcoin wave with these 11 cryptocurrency-related stocks,” I continue to receive requests for more bitcoin /zigman2/quotes/31322028/realtime BTCUSD +0.20%  and bitcoin-related stocks. The reason is that some of the stocks mentioned have done extremely well. For example, Riot Blockchain /zigman2/quotes/209538617/composite RIOT -3.22% and Overstock /zigman2/quotes/200022359/composite OSTK -3.42% have surged in a short time.

Here are seven new stocks to review. But be careful. (More on that later.)

Genetic Technologies

Please click here for an annotated chart of Genetic Technologies /zigman2/quotes/208953622/composite GENE +0.29% . The chart shows a spike on blockchain-related news. Speculators often look at a chart and see how much room there is to run. The chart shows there is a lot of room to run for this stock. There is another supporting factor that there is a parallel to Riot Blockchain. Riot was in the biotechnology business and jumped into blockchain, causing the stock to, at one point, triple from my prior mention. Genetic Technologies is also in the biotech business.

There is a lot of potential in applying blockchain to medical information. Perhaps this is why some traders are excited. However, there are several cautions here. The company is not doing anything in blockchain right now. There is simply a mention in a filing of blockchain. Also, this is a nano-cap stock and can be easily manipulated. This is suitable only for experienced short-term aggressive traders. Traders need to be experienced with stops on highly volatile nano-caps.

Read: Mark Hulbert’s three timeless investment lessons of 2017

Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.

LongFin

LongFin /zigman2/quotes/204920859/composite LFIN 0.00% recently came public at $5. In our analysis, even $5 is not justified. The company acquired Ziddu.com, a purported blockchain-solutions provider, to offer microfinance lending against collateralized warehouse receipts in the form of Ziddu Coins. By all appearances, the company does not have any material blockchain-related revenue. The stock shot up to over $100 and then pulled back. This is a favorite of many day traders.

Net Element

All Net Element /zigman2/quotes/204868203/composite NETE +1.00% had to do was to announce that it was starting a blockchain-related business and the stock rocketed. The company plans to connect merchants and consumers with blockchain technology. Just like LongFin, this stock has become a favorite among day traders. The recent price is not justifiable on fundamentals.

On Track Innovations

On Track Innovations announced that it plans to integrate bitcoin acceptance in ATM and secure cashless vending products. The stock has run up but has not been driven to insane heights. Fundamentally we do not see this development adding materially to the revenues in the near future but it is all about sentiment.

/zigman2/quotes/31322028/realtime
US : CoinDesk
39,803.10
+80.78 +0.20%
Volume: 0.00
July 30, 2021 3:22a
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/zigman2/quotes/209538617/composite
US : U.S.: Nasdaq
$ 31.90
-1.06 -3.22%
Volume: 7.12M
July 29, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.16 billion
Rev. per Employee
$1.51M
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/zigman2/quotes/200022359/composite
US : U.S.: Nasdaq
$ 72.77
-2.58 -3.42%
Volume: 4.27M
July 29, 2021 4:00p
P/E Ratio
37.87
Dividend Yield
N/A
Market Cap
$3.24 billion
Rev. per Employee
$1.46M
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/zigman2/quotes/208953622/composite
US : U.S.: Nasdaq
$ 3.43
+0.01 +0.29%
Volume: 436,502
July 29, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$57.54 million
Rev. per Employee
N/A
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/zigman2/quotes/204920859/composite
US : U.S.: OTC
$ 0.13
0.00 0.00%
Volume: 100.00
July 28, 2021 12:08p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
$8.88M
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/zigman2/quotes/204868203/composite
US : U.S.: Nasdaq
$ 12.15
+0.12 +1.00%
Volume: 200,401
July 29, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$65.15 million
Rev. per Employee
$1.06M
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