Weak Markets Expose Value Opportunities…Here’s Why Blackboxstocks Is In That Group (NASDAQ: BLBX)

Weak markets expose opportunities. Blackboxstocks (NASDAQ: BLBX) is one. The company just completed a $12 million public offering, uplisted to a senior NASDAQ market, and reported the highest paid subscriber base in its history. Not only that, they have a working partnership with industry giant TradeStation (NYSE: QFTA), scored the highest-ever revenues in Q3, and boast a capital structure that has only about 13 million shares O/S and a trading float lower than that. And if that wasn’t enough to attract investors ahead of a well-deserved surge in price, BLBX management added to the consideration by painting a decidedly bullish landscape for Q4 and all of 2022. 

Indeed, BLBX made no secret it intends for its record-setting growth to continue. And by a good measure, too. Last month, management guided to expect comparative Q4 revenue to be between 45% – 50% higher than last year. Accordingly, that likely means another record-breaking update to its subscriber levels. Connecting those expectations with an overplayed short position, a perfect recipe for near-term, potentially exponential gains is in the works. Thus, those taking advantage of the valuation disconnect now may soon get the fuel needed to ride the share price significantly higher.

By the way, history shows that BLBX stock can soar on good news.

Listing To iOS and Android App Stores

Last month, BLBX shares surged over 24% after announcing its highest paid subscriber base ever, surpassing the 6,000 user threshold. The move showed how powerful news can be to send short sellers to cover. And by no means has the weakening markets provided long-term sanctuary for those on the short side of the trade. At most, it’s short-term protection.

Still, that protection could evaporate sooner than expected, especially with current share prices not appropriately pricing in another set of record-breaking performance. In fact, taking guidance and applying a sector-standard revenue multiple, the shares would be better priced above the $5.00 level. From here, that’s a more than 66% increase. But that’s only a “fair” value. Based on its growth trajectory, BLBX deserves a premium.

And earning that premium is justified. In addition to its increased revenue forecast, BLBX is also commencing its most aggressive marketing campaign ever, a plan which they believe can eventually get its industry-best trading platform into the hands of millions. Yes, it’s an ambitious target, but considering the imminent listing of the Blackboxstocks platform to iOS and Andriod app stores, it’s not an unreasonable presumption.

Remember, those two inclusions reach at least 99% of potential Blackboxstocks users, which can fuel exponential adoption of the platform when combined with million-dollar marketing. Moreover, they aren’t limping toward that milestone; they are charging it, supported by its highest cash balance ever, a robust marketing plan, and a revenue-generating tailwind that could make Q4 results the new starting point for better things to come.

Better still, those new baselines should also increase, with Q over Q growth likely to raise benchmark revenue expectations. Hence, trading from current levels, and even from its public offering level, the path of least resistance is to the upside.

Video Link: https://www.youtube.com/embed/wP35QHAb-X8

Riding A Wave Of Momentum

But the window of opportunity could be closing. Several high-profile analysts expect the markets to rally sharply at the start of 2022. Better yet, they expect the small-cap sector to recover faster than its large-cap brethren. That would make sense, noting that despite major index highs, small-caps have lagged the selective rally in Q3 and Q4. However, that’s not all bad news for investors trading with more than a three-week horizon. Stocks with a proven growth history tend to lead the pack out of a secular bear market, and BLBX could be part of that crowd.

Deservedly so. Not only has the company delivered extraordinary growth over its 2020 revenues, but it’s also strengthened its platform and business relationships in the process. And they are doing so alongside a surge in the democratized trading movement. That movement is evident by the growth at Robinhood (NASDAQ: HOOD), which despite its stock getting crushed in recent weeks, doesn’t take away from the fact that they attracted an army of retail investors to a new model of trading. Still, while HOOD may have helped create the market, they have never been immune to better platforms eating away their market share. BLBX is part of that group.

And not only is BLBX taking share, but they are also positioned to accelerate the pace of doing so by maximizing its healthy cash balance to expedite the conversion of traders needing more than companies like Robinhood can offer. As part of that, BLBX provides more than an industry-best platform; they also bring partnerships to enhance the value proposition. Its relationship with one of the most influential names in the business, TradeStation, is a vital part of expediting the pace of client conversion.

Partnering With TradeStation

Excellent reviews help as well. And BLBX is earning plenty by combining features with TradeStation allowing BLBX to deliver far more trading power and insight than other real-time platforms. Better still, the transformative working relationship with TradeStation not only enhances an already comprehensive platform; it validates it. Not only that, integration with TradeStation helped push the product to perform at a level once reserved for only professional traders. More simply, the BLBX suite of features has leveled the playing field for retail traders by providing real-time information, market insight, and lightning-fast trade execution. It goes beyond those advantages, too.

A powerful advantage of the BLBX platform is that it’s a financial technology and social media hybrid providing real-time proprietary analytics for stock and options traders of all levels. Few, if any, BLBX competitors can make the same claim. To some users, it’s so much better that they have referred to Blackboxstocks as a Robinhood platform on steroids. Why?

Several reasons. But likely, the biggest is that Blackboxstocks is more than a news/buy/sell trading tool. Indeed, it has those functions. But beyond what’s expected, the combined BLBX/TradeStation resources go a big step further, providing users a Quick-Click feature that loads proprietary automated alerts for options contracts through a simple two-click process. That feature alone saves traders crucial time on order entry and execution with lightning-fast execution speed. 

Users also get a dual benefit from real-time Blackbox trading alerts and from TradeStation’s discounted trading rate with no ticket fee to Blackbox members using the Quick-Click feature. Thus, investors save the two most valuable assets in trading, time and money, and that’s still not all.

The most attractive feature of the platform may be that it uses the most current technology, including AI, to do almost all of the pre-trade legwork for its users. And it does so with speed and precision, running thousands of scans at a millisecond pace to provide users proprietary options alerts or options flow data. But not only does it find trade opportunities, but it also sets it up to execute as well. Once an optimum trade is scored, users simply click the mouse on the highlighted trade button to get orders executed at speeds usually reserved for institutional traders. Thus, while the working relationship with TradeStation has been called transformative to BLBX, it can also be for traders’ portfolios.

Several factors point to that being the case.

Lightning-Fast, Millisecond Scanning

As noted, speed is one. But, BLBX users get more than lightning-fast processes; they get detail. Embedded technology continuously scans the NASDAQ, New York Stock Exchange, CBOE, and all other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. In addition to that top-tier analytical performance, the BLBX platform also gives users a fully interactive social media platform integrated into a user-friendly dashboard that enables them to exchange information and ideas quickly and efficiently through a shared network. More simply, BLBX helps facilitate a chat room with a shared interest to make money. It’s a powerful and valuable feature.

And for novice traders, it can level the investment playing field. The real-time shared chat feature is a perfect tool for retail investors who want to follow more seasoned investors’ trades. In other words, the social aspect of the BLBX platform provides a way for traders to invest alongside more savvy ones through its live audio/video feature. That feature allows members to broadcast on their own channels to share trade ideas. That feature makes the BLBX platform ideal for trading communities, and best of all, provides the entire group the simultaneous benefit to leverage knowledge, speed, and access to real-time information.

Of course, while BLBX investors share in the rewards of user growth, their primary interest may be in how BLBX benefits directly. After all, that’s what will drive share prices higher. The excellent news is that BLBX is doing its part.

BLBX Is Doing Its Part To Drive Value

In November, Blackboxstocks reported a surge in Q3 and YTD results. Revenues increased by 34% to approximately $1.47 million compared to the previous year’s comparative period. Its nine-month YTD results were even better, with revenues jumping by more than 90% to roughly $4.42 million over the comparative 2020 period. Notably, while a performance gauge, that’s now historical data. Investors are already looking ahead to make sure the bullish thesis is intact. According to BLBX management, it is.

Guidance for the current quarter calls for more records, which, incidentally, can move BLBX toward Adjusted EBITDA positive status sooner than later. Keep in mind, BLBX posted only a $(23,320) loss for nine months ended September 30, 2021, a 73% improvement over last year. Thus, when dealing in millions in revenue, that’s a short gap to close.

Remember, too, BLBX is in a much stronger position to drive shareholder value higher after completing its $12 million capital raise. Also, as noted, with plans to make its BLBX platform available as iOS or Android apps for mobile devices this quarter, already impressive organic growth could become exponential viral growth. That’s possible by reaching millions of new potential users and pricing well within reach of investors needing real-time trading tools that allow them to maximize trading strategies. By the way, BLBX believes that user growth can increase exponentially as early as Q1 of next year. That’s less than a month away.

BLBX Positions For Breakout

Hence, while BLBX stock has been under pressure, indicators suggest the selling is well overdone. And with a combination of strong fundamentals, operating performance, product innovation, and meeting trends, BLBX stock looks better positioned than ever to reverse course for what could be a dramatic snapback rally. 

So, while the BLBX platform may be the go-to tool to find and execute lucrative short-term trades, when it comes to BLBX stock, a buy and hold strategy may be more appropriate. After all, BLBX has what long-term investors look for: record-setting performance, exceptionally strong guidance, industry-best relationships, and is extending the reach of its flagship product to millions of new potential users. Hence, the sum of its parts leads to a simple conclusion- the seeds are planted for the BLBX growth curve to steepen.

Therefore, investment consideration is more than attractive; it’s timely.

 

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