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DISCLAIMER: All of ZipTrader & ZipTrader LLC, our trades, reflections, strategies, and news coverage are based on our opinions alone and are only for entertainment purposes. These are Charlie's opinions, not investment/financial/legal advice. Past performance is not a predictor of future results. ZipTrader LLC is a Media Company and focuses on publishing media in regards to the market & market education. This is not personalized but rather general educational and informational material. Do your own due diligence and/or consult a registered financial advisor before taking any positions.
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#NotFinancialAdvice
DISCLAIMER: All of ZipTrader & ZipTrader LLC, our trades, reflections, strategies, and news coverage are based on our opinions alone and are only for entertainment purposes. These are Charlie's opinions, not investment/financial/legal advice. Past performance is not a predictor of future results. ZipTrader LLC is a Media Company and focuses on publishing media in regards to the market & market education. This is not personalized but rather general educational and informational material. Do your own due diligence and/or consult a registered financial advisor before taking any positions.
You should not take any of this information as guidance for buying or selling any type of investment or security. I am not a financial advisor and anything that I say on this YouTube channel should not be seen as financial advice. I am only sharing my biased opinion based off of speculation and personal experience. An individual trader's results may not be typical and may vary from person to person. It is important to keep in mind that there are risks associated with investing in the stock market and that one can lose all of their investment. Thus, trades should not be based on the opinions of others but by your own research and due diligence.
AFFILIATE DISCLOSURE: I only recommend products and services I truly believe in. Some of the links on this webpage are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe.
Okay folks, so in this video, I want to talk violently about 172 cent stock that has been getting more and more attention. Ticker Nile has been quietly gaining steam and this morning he jumped five points ahead on the list and is now the sixth trending stock on Reddit. number two in the R slash short squeeze Reddit form, and on stock. Twits, it's now the fifth most watched ticker.
It's also gotten a wide range of media coverage because of its latest moves. The Street said quote Nilestock a high potential penny stock worth your attention. Benzingo reported that boutique research shop Spartan Capital has initiated the stock with a buy rating and a price target all the way up at seven Dollars, which if you agree with them, that's more than 7x up, right? And it wasn't really a randomly thrown out fluff piece. Spartan Capital actually came up with an extremely in-depth 26 page paper on why Bitmile is worth seven dollars in their view.
Lots of different coverage for lots of different reasons. Dow Jones Newswire's reports Bit Nile holdings up 48 on plans for turn On Green listing. Berkshire Hathaway's Business Newswire reported Bit Nile update status of Bitcoin mining 111 million invested to date and new miners and upgrades to the Michigan Data Center. They also have a sponsorship in Indycar.
Of course you go on Reddit and you have the usual retail hyping. Four on Nile is now 69.69 and then tomorrow it's probably going to be 420 420 Or I guess that would just be 4 20 42. But you look at Niles institutional transactions. Most recently reported orders were in the buy direction, a huge share increase from the Vanguard Group, which admittedly buys pretty much everything since they're so damn large, but also from Renaissance Technologies, Blackrock Fund Advisors, Virtue Financial, and so on, and so forth.
Trends overall are very in the green, with the exception of the Stanley's over at Morgan who are selling out. Point is though, if you've been following Nile and the story behind it, it seems like they're kind of everywhere at once. And in light of yesterday's Zip Trader You Briefing winner Alg, which had doubled on its hype run yesterday, I've been looking for setups that fit similar characteristics. Allg is a very small hype Ev charging station company that recently went public via Spec and has gotten a lot of social media attention.
whereas Nile is a holding company that acquires large interests and oftentimes controlling interests in certain companies that are usually in huge hype sectors, including the Ev space, but also the bitcoin mining space, D5 data center processing, and they also have some more traditional investments like with real estate. But because they are on the crux of so many different hype sectors and because they're going to be spinning off their Ev charging company, it's becoming a potential catalyst for the next Alg stellar Runner. And in this video, we're going to violently dive through Nile whether it makes sense to buy right now and potential catalysts on the horizon. and we will be fair and look at it from both a trading perspective based on hype around catalysts and the overall setup and also a fundamental basis based on if there's actual real, fundamental value behind this company and before we do. because this is such a small stock, I do want to be completely and extra clear. There's no incentive for me to say anything good or bad about this company other than my true opinion. I'm not holding a long or a short position in this in any way, shape or form prior to making this video. so if anything, my incentive is really only to give you my opinion and have you come back and hit that ravishing like button for future videos.
I say this because when you get into super small caps, they can be very, very fun to talk about. but they also tend to be an area where you get a lot of Bs, so I just wanted to put that out there so people understand where I'm coming from. Okay, so to value a company like Nile, I had to start with a very advanced and in-depth form of technical analysis. So I went and I started my Ta on the Nile River in Egypt, which follows this green area hither and I found the most shocking thing that I've seen in markets to date.
If you look closely and retrace the Nile River city of Asiot to Rasgarhib on the Swiss Canal, you'll find an ascending triangle bullish pattern, which I believe is pure evidence that Nile is going to the moon. And before you say Charlie, that's a little bit of an untraditional analysis, isn't it folks? This is how the Ancient Egyptians did their ta back in the day and that got them. The pyramids. Do you have a pyramid? No.
Well, hey, maybe we should be following someone that does have a pyramid. It even looks like the road between the Nile and the city over here is a symbol that shows that every single time you buy the dip, it does recover. Now, I haven't brought out the Fibonacci yet, but I'm pretty damn convinced. But Egypt decide.
What is the business behind Bit Nile Holdings? Well, it's a holding company with many different interests in many different sectors. Bit Now Inc owns 70 of Alliance Cloud Services, which is the owner and operator of a 617 000 square foot data center that focuses on providing cloud hosting solutions and Bitcoin mining operations. Bitnile Inc. operates 1700 miners of which it owns 100 of and this is the important part has as of January 2022, executed several purchase orders for a total of 20 600 miners, which it'll take delivery of over the next 10 months which should cause the number of miners to go up about 12x and create an opportunity for it to be a growth company.
In terms of revenue this year and especially next, they own 20 percent of earning, which is kind of a cool name to say the least, but this is a D5 marketplace which essentially allows for trading smart financial contracts and other related resources. Then you have their Imperils Holding Corp, which it owns an 81 percent stake in, which has its own subsidiary Can Occur Sciences, which offers various health products related to Mj or, as my Catholic school upbringing would have me believe, the Devil's Lettuce. Other subsidiaries include Gresham, which has its own subsidiaries and offers exposure to defense electronics and equipment for use in advanced military campaigns. You also have Turn On Green, who hopes to grow in the Ev charging space. Some recent Turn On Green work includes installing charging stations at Tim Hortons, installing Ev chargers in a Bel Air shopping Center, and developing some at a California resort. They offer both commercial and residential chargers. They also own Alt Global Real Estate Equities, Inc, which has a portfolio of properties mostly mid-tier from Wisconsin to Florida to New York. In terms of company health, cash and cash equivalents held between the subsidiaries of Bitnail Holdings, which include Bitnail Inc.
and Madison Hotel Group or 44 million and 2 million respectively. And if you're talking about combined assets total, you're looking at 279 million and then you look at your liabilities and you're looking about 78 million, which puts you somewhere around 200 million in net worth, which is a decent amount of wiggle room. Now the question if you are paying attention, I hope you're paying attention. you better be is, well, how do you have 200 million in net worth and then your market cap is only sitting at 60? Some odd million? Well, the reason is because this is basically at its core and activist fund in its current structure, taking on aggressive risk in different sectors that the administration of this company believe in.
Ones that would pay off massively if they succeed, but ones that would also fail massively if they fail. And so even though the company is trading at a discount from its net asset value, investors are like, you know what, We don't want to take on that risk, it's just too aggressive for us. But the real question is really, is this company's investment going to pay off? They are projecting 2021's bitcoin mining revenue inflow to be 3.5 million, but then to jump all the way to 82.1 million in 2022. And they did order a ton of miners.
like I mentioned earlier, So if they actually get those miners and they deploy them effectively, this number could happen. They are also projecting Gresham worldwide, their Defense Electronics company to jump somewhat modestly from 25.6 to 29.6 They are also expecting their Ev charging company turn on Green to jump from 5.3 to 13.1 They are expecting a drop in their Dp lending segment and in their real estate segment they are expecting a 15x plus growth rate 800 000 to 15.4 million. and there is some justification to this as well. They announced the acquisition of four new hotels. This might be a little bit of an optimistic number, but again, they did take some aggressive action in terms of acquisition. But overall, and this is really the important number, they are projecting a total of almost a 3x jump in revenue from 2021 to 2022 on a company-wide basis. Now, the problem with this forecast is that it really relies heavily on an unproven bitcoin mining segment and a segment that quite frankly is very, very volatile. If we end up having a terrible year for Bitcoin or Bitcoin, difficulty goes to the roof.
Hey, their investments may not yield a tenth of this and it may be stretched out over many years instead of this year, completely derailing revenue projections and perhaps adding a lot of debt payments that screw up all the other financials. Not to mention, their real estate may be again a bit of an aggressive forecast as well. and the company really does need these things to keep scaling up and eventually become very profitable in order to make sure that they're not eating too far into their assets. So when it comes down to the question of do I like this as a fundamental play based on the business in its current form.
No, I'm not a fan of buy and holding acquisition companies that focus on tons of different sectors. even the best ones usually become a jack-of-all-trades instead of a master of one. And a lot of them, including this one, have what I'd call bloatware. say.
For example, I like their Bitcoin mining segment, but I don't like their mid-tier Wisconsin hotels. Why would I force myself to invest in both just to get exposure to their Bitcoin segment? I'd rather just buy something else like Amara or A Riot, which already have enough risk in and of themselves. More is a dirty tease. We know That point is, if I wanted exposure to any one of these things, I would rather just invest in a company that has a focus on just that one thing.
So, while it's not a fundamental play, it actually creates an interesting opportunity as a trade. So how does this trade? Well, in terms of motivations for the price of Bit Nile, the biggest movements have naturally usually been caused by the performance of Bitcoin. But interestingly enough, Bitnail has recently been making some big moves to cut out some of its subsidiaries and spin them off. That's causing Bitnail to perform a lot more based on speculation on the value of those individual subsidiaries.
For example, the most recent round of rallies just a week or so back came after the company announced that its turn on Green Eevee Charging subsidiary which it owns 100 of entered a security purchase agreement with Imperials Holding Corp, which it owns 81 of and also trades separately on the Otc markets. Actually, it's pronounced Imperialists Imperialist Holding Corp. There we go, come join Ziptrader and watch Charlie as he tries to pronounce big words subscribe Today, But under this agreement, Imperialist Holding Corp will essentially be buying Turn On Green, changing its name to Turn On Green and then the company will be trading on the Otc markets where Imperialist is Now until it goes and tries to apply for the Nasdaq uplifting, effectively being spun off and shareholders of the current entity, Nile will then be given stock and warrants that are of equal and appropriate value. But what's the point of doing this though? Well, one reason, and it kind of goes back to why I don't like this fundamentally right now is again because it's easier to get investors if you're focused on one segment instead of a ton of different unrelated segments. There may be Ev investors who want to invest in Turn On Green, but not in Bitcoin mining and vice versa, or others that want to invest in real estate, but not Turn On Green. If you want to invest in any one of these segments right now, you have to invest in literally all of them on the list, which effectively really limits the amount of investors who are willing to buy this up and thus lowers the valuation. Bidding off Turn On Green can provide an opportunity for Turn On Green to get a lot of hype capital after it splits from all these others. But the splits don't stop there.
They're also splitting their Bit Now business in two with Bit Now and Alt Alliance being separated and also spinning off their defense segment. So if I haven't lost you, what is very interesting about this from a trading and hype spec standpoint, is that if you go back to their revenue segments, each segment again has a completely different pool of investors and risk factors, right? And combining them together likely substantially lowers the total valuation that they can get from investors because you're forcing investors to invest in each instead of the one that they actually want to invest in. So some investors are like, okay, I'm not going to invest in it, but if you spin off each into their own individual equities segments like Bitcoin Mining, Gresham Worldwide, Turn On Green and Real Estate can all have their own separate tickers, which means that people can separately invest in them if they want to. Now, something like a Dp lending if it was spun off, would probably lose a lot of its equity, but I would think that something like a Bitcoin Mining in the right conditions and Turn On Green and the hype cycle that we're in right now as well as Gresham worldwide, may see a lot better of a return if they were all detached from one another.
Which means that if I'm right on this, people are going to speculate that bit. Nile shareholders are about to get a huge jump in total valuation once these things are split off. And that means that people that are holding bitten right now and the pre-split entities are going to then be distributed versions of the spun off entities and those are going to go up in value. Now, I think that some segments are probably going to go down in value, and the bitcoin mining one might not go up in value for a while, but that doesn't matter because I'm not suggesting buy and holding it. But what I'm suggesting is that as a hype, spec trade people are going to be rallying this up around each catalyst expecting the spun off entity to go up massively. Which means that the pre-spun off entity should go up prior to the actual spin-off just even on announcement of a spin-off coming. The way that I see it is that Nile is likely going to be a pump and dumpy style trade similar to the Spiky Spiky that we saw last week when they announced the spin-off of Turn On Green, but there's also going to be a lot of catalyst in the future to make it even more spiky spiky. Each spin off, each further announcement of acquisition, each revenue update, each delivery of new Bitcoin miners, and overall sympathy runs from sectors that this company is in.
whether that's in the crypto space, the Ev space V5, which is also kind of connected to crypto, But you get the point. And of course, what does make this worth talking about and adds to the fuel here and you probably saw this coming is that again, short sellers are trying to get this down massively, despite the fact that hey, it's already down dramatically in the last six months. Which means that if you see a spike in retail interest on any of these catalysts, it creates this opportunity for rallies to be so much more severe. So overall folks, definitely a speculative trade and a very fun stock to cover.
Super Small Cap trades are definitely not for everybody. They're some of the riskiest out there, but they can be very fun and a lot of people have asked for my coverage on this stock and some others in the Super Small Cap space, so I've been trying to give that. We'll of course, keep you updated in the daily morning briefings in Zip creator you If we do see any setups of new momentum on Nile right now, it seems a little bit cold, but we'll keep you updated there with Nile and other tickers that we see. Of course, you can also be doing that on your own, and putting in that work pre-market though does tend to be when those catalysts drop, which is why we do offer briefings at that time.
Difficult to do that nightly in the videos because relevancy changes very, very quickly. That caps off today's video. If you have any questions, feel free to reach out to us below or join us on Zip Creator circle if you're looking at a trade. with our step-by-step lessons, our private chat, our daily morning briefings, as well as our full price target list for a one-time fee that is discounted if you put in coupon code.
never give up. I'll put a link to Ziptrader you below. And if you're looking for a new trading app that has a lot of different features that can help you become a better trader and investor, I'll put a link to Moomoo down below. You'll get not just five free stocks, but also a share of Neo. When you hit that link in deposit, I think you'll like them a lot. Anyways, have a good one and I'll see you in the next video.
How are we feeling about Nile now???
How do you feel about this stock now ??
NILE offers diversification!! If one of the sector is not doing well then the other can perform well!! This is basis 101 for risk management! Berkshire Hathaway worth a lot because investors find it very attractive and better at risk management!!! This guy has many followers but way wrong on this
2 weeks later .. down .20
KGKG IS CRAZY TODAY AND CHEAP!!!!! Can you please do a video on them
💎BITNILE RISE LIKE LAZURUS
Charlie, Rumor has been going around about a few stocks expected to surge to a record high as much as Tesla, any idea which stocks these are? I got in a little late on Tesla and I will want to capitalize on this opportunity.
The truth is more important than the facts. Access to productive information is what we all need to become successfully in life. To possibly create wealth good enough to retire, proficiency is indeed necessary; cause most affluent entrepreneurs acquires the synergy of wealth managers that offers high-net-worth operations that encompasses all parts of a person’s financial life.
No
I like the break down on NILE and always appreciate your in-depth perspective. I do wan't to mention that this "Holding Co." is not a lesser investment due to their diverse holdings. You said something like jack of all trades. That's way off in this case. Every company even TSLA is is diverse in its holdings. Many ETFs are diverse. Serious cash has been dispersed to invest in serious endeavors. Their big focus right now is BIT or BTC. Berkshire is nothing more than a well balanced holding company. No? BRK is a pretty good jack of all trades. Only time will tell on NILE
why the violence Charlie?
Risk Tolerance = Charlie sharing the knowledge 🚀
This guy throws around “7x” every video if your new to Investing don’t make the mistake listening to this guy
Watch this YouTube and ur gonna get rekt trying to make speculative and short term moves
Got me some $NILE
Can we talk about amcs beautiful set up please?
same as AEI ! but cheaper with AEI
@ 4 min. Brilliant TA. Charlie's in denial. When the pyramids are dynamited. A copy of Charlie's brain will found at the core.
Great video thank you
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