SmallCapFirm
New Profile For 11/25: GDET Hold Ties To 3 Fast-Growing Industries, Exhibits 1,500%+ In Upside Potential
Full Analyst Report: Goldman Small Cap Research
November 22nd
SCF Members,
After Bitcoin's fall from grace beginning at the end of 2017, we've now seen an epic rebound this year as the cryptocurrency reached highs it hadn't seen since the first month of 2018.
Out there, there are whispers that institutions, now receiving significantly more exposure to Bitcoin, are ready to step up to the plate. This provides an impressive outlook for the crypto's future.
Overall in the United States, the collective market for C-B-D sales is expected to exceed $20Bn by 2024, according to BDS Analytics and Arcview Market Research.
The worldwide blockchain tech market size is expected to reach $57Bn by 2025, registering a CAGR of 69.4% from 2019 to 2025, according to a new study conducted by Grand View Research, Inc.
Knowing this potential for these markets, wouldn't it be interesting if a company had diversified business ties to all 3 markets?
Guess what... I think I've found just the one. Your new idea for 11/25 is:
*GD Entertainment And Technology (GDET)*
GDET may be one of the only publicly-traded pure plays covering three of the fastest growing, multi-Bn-dollar, next-gen industries: Cryptocurrency, Blockchain, and C-B-D ("CB") products.
GDET’s new CB products subsidiary, The Greenery, appears poised to generate meaningful revenue right out of the gate. Given the upcoming aggressive rollout of its target marketing, the CB subsidiary alone could end 2019 on a $2-3Mn annual revenue run-rate.
GDET’s HyperDigital Technologies subsidiary is setting the stage to secure multiple money services business licenses in order to host cryptocurrency ATM (or kiosk) units throughout the country. Once deployed, these units can generate high returns per transaction, regardless of crypto pricing changes. GDET also runs crypto mining operations in New Jersey.
An early stage player with a diversified revenue stream in high profile and high growth markets, GDET is appearing to offer considerable upside potential. As GDET achieves CB revenue milestones along with broad cryptocurrency ATM deployment, these event-driven shares could reach the $0.06 level, a valuation similar to other high-growth, diversified emerging companies.
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Analyst Report: Goldman Small Cap Research Designates $.06 Price Target For GDET
In 2019, Rob Goldman, of Goldman Small Cap Research, pinned a $.06 price target for GDET.
With GDET currently trading under $.004 (at the time of writing Friday), that $.06 price target gives this stock over 1,500% potential upside.
Get your hands on the full research report here.
Recent catalysts have been mentioned over several press releases in recent time. I've uncovered 3 specific catalysts that could have GDET shares soaring towards that $.06 target. Read them below.
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> Major Catalyst No. 1 For GDET <
GDET Announces Agreement to Install and Operate First Bitcoin ATM
FORT LEE, NJ, Nov. 12, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – GD Entertainment and Technology (OTC: GDET) (“GDET” or the “Company”), an emerging leader in the CB, Blockchain, and Luxury Retail markets, is very excited to announce the establishment of a forthcoming agreement (the “Agreement”) to install and operate the Company’s first full-service cryptocurrency ATM. The location is a large retail marketplace with high-volume foot traffic in Austin, TX. The Company will provide the physical ATM as well as all related logistics involved in operating the ATM at the location.
“We truly love this line of business as a high-probability, high-ROI bet, and the installation of our first full-service crypto ATM is a huge step toward actualizing this extraordinary opp.,” commented Anil Idnani, CEO of GDET. “While we cannot fully disclose the identity of the counterparty at this time, we can state that this is an ideal location in terms of foot traffic and cultural context. We have engaged a prominent, local retail solutions provider and a finalized agreement is expected within the coming days.”
Management notes that the Company is working as fast as possible to finalize the Agreement, but all details must continue to remain private at this point until the finalized Agreement has been executed by all parties, at which time, the Company will disclose all relevant details and involved parties.
The Company believes the Crypto ATM market is an underappreciated market opp. with explosive potential. A recent report from Markets and Markets Research Private Ltd. concluded that the crypto ATM market will reach $144.5Mn by 2023 from $6.8Mn in 2017, representing a CAGR of 54.7%. Importantly, this aggressive growth rate is regarded as less vulnerable to broad economic cycle factors than most major commercial markets due to the countercyclical dimension generally attributed to cryptocurrency-related products and services.
Mr. Idnani continued, “This is not only a much bigger market than most people realize, but it’s also much more resilient. It’s extremely rare to have a market opp. that offers both massive growth potential and low expected volatility of returns. The market for convenient cryptocurrency access and transactability is growing fast, and that’s unlikely to be impacted by macroeconomic factors. Once installed, we expect our first Crypto ATM location to be immediately prof-it-able on an operating basis. We are already working toward establishing our second location.”
The Company will disclose additional details as the Agreement is finalized.
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> Major Catalyst No. 2 For GDET <
GDET Announces Completion of Inventory Stocking Phase for The Greenery with Delivery of New Line of Premium CB Gummies
FORT LEE, NJ, Nov. 05, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- GD Entertainment and Technology (OTC: GDET) (“GDET” or the “Company”), an emerging leader in the CB, Blockchain, and Luxury Retail markets, is excited to announce receipt by its wholly-owned subsidiary, The Greenery, of a large delivery of its new line of branded CB Gummies. This is the final delivery in establishing The Greenery’s initial product inventory before the launch of an aggressive distribution process.
This delivery consists of 9,500 units of 10mg CB Gummies for sale under The Greenery brand label.
“We have amassed a very strong inventory of products now at The Greenery, and we are ready to focus on distribution and monetization going forward,” remarked Anil Idnani, CEO of GDET. “Our large inventory of CB oil, tincture, salve, pet treats, masks, and our signature Honey Hemp infusion is all fully paid-for. The process of monetizing that inventory represents pure upside for shareholders going forward. Our Greenery segment is in a terrific position, which will allow us to be very aggressive in the weeks and months ahead.”
Management believes that, along with topical skin products, gummies represent among the most accessible modes of delivery of CB to the mainstream retail consumer market. The Company also strongly believes that mainstream consumer adoption of CB products represents a tailwind set to push overall CB sector growth in the quarters ahead.
This view aligns with recently published research suggesting that the growth rate for the overall CB-based products market is accelerating during the second half of 2019. According to research from MRFR, the global CB market is estimated to register a CAGR of 125% from 2019 to 2026. The Brightfield Group joins in this appraisal, noting that 2019 alone is expected to show growth of over 900% as mainstream big-brand retailers – such as Kroger’s, Walgreens, Walmart, Rite-Aid, and others – begin to carry CB products in plain sight of browsing consumers.
Mr. Idnani continued, “The Greenery is positioned as a leadership play in a rapidly growing space. The overall CB market continues to blow up, and we have targeted a branding and distribution strategy that will differentiate us from the herd as that growth curve continues to ramp higher. Now that we have amassed a sufficient inventory of premium quality branded products, shareholders can expect more tangible results. Keep an eye out for more details to follow.”
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> Major Catalyst No. 3 For GDET <
GDET Announces 24% Expansion in Bitcoin Mining Yield Following Acquisition of Significant New Mining AssetsFORT LEE, NJ, Oct. 29, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- GD Entertainment and Technology (OTC: GDET) (“GDET” or the “Company”), an emerging leader in the CB, Blockchain, and Luxury Retail markets, is pleased to announce the completion of a material Asset Purchase Agreement (the “Agreement”) for the acquisition of significant new and used Bitcoin mining assets to be immediately integrated into the Company’s active cryptocurrency mining operations.
“We are expanding and optimizing production from our mining operation at a rapid pace,” commented Anil Idnani, CEO of GDET. “This planned expansion follows a series of steps in Q2 and Q3 to dramatically lower our all-in costs through improved negotiated rates with utility providers and significant firmware upgrades. Any notable increase in the price of Bitcoin following this expansion in production at our mining facility should translate into substantial top and bottom-line growth for our shareholders.”
The Company is currently operating 72 ASIC Bitcoin Miners at its primary New Jersey mining facility, with plans in place to move toward full fleet operation over the near term. In addition, the Company has begun the process of a major planned expansion of this fleet. This Agreement will add 17 state-of-the-art miners to the Company’s fleet, immediately increasing yield by 24%. The move is part of a larger expansion strategy geared toward augmenting shareholder value as the Company prepares for higher cryptocurrency exchange rates and wider mainstream adoption.
According to research by the Company, Bitcoin pricing in 2020 may be significantly impacted by growing concerns over the sustainability of what is already the longest-lasting global economic expansion cycle in modern history. This growing cyclical vulnerability is further amplified by the fact that major central banks in the developed world have already driven interest rates so low that over $14Tn in sovereign debt is now trading at negative interest rates, suggesting that traditional monetary policy tools may present a lack of significant potency in a more aggressive contractionary environment, driving substantial new demand for alternative non-fiat stores of value like precious metals and Bitcoin as a hedge against experimental new stimulus strategies such as Modern Monetary Theory.
In addition, the Company’s expansion in mining capacity follows significant optimization steps taken earlier this year, including a sharp reduction in all-in utility costs (annual energy savings of as much as 41%) and an upgrade in unit-level system performance leading to a powerful increase in hashrate-per-unit-power consumption and sharply augmented system-wide security.
“Individuals and firms that made substantial hardware and technology investments in order to mine cryptocurrencies when Bitcoin was trading well above its present levels are now providing an advantageous secondary market for state-of-the-art hardware,” continued Mr. Idnani. “We have predicated our Mining Segment strategy on the assumption that we would have an opp. to dramatically expand mining capacity at reduced costs. That opp. is now in play, and we have negotiated equipment acquisitions accordingly. This step should put the Company in an extremely advantageous position to capitalize on subsequent improvements in BTC exchange rates.”
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GD Entertainment And Technology's Subsidiaries
CB Products: The Greenery
The Company’s newest subsidiary was launched earlier this month and we believe it offers the greatest promise. There is substantial interest in hemp-derived CB-infused products, as evidenced by the recent flurry of M&A, and investment activity in the industry over the past few months. According to a report by the Brightfield Group, the hemp-derived CB market is forecast to reach $22Bn in 2022. Given that the market remains fragmented, in-demand, niche offerings likely to be sold by GDET position the Company for rapid market share gains.
Examples of niche successes abound from Martha Stewart’s touting CB health benefits for pets through her alliance with Canopy Growth to the maker of new products such as CB-infused Jelly Belly candy (leading jelly bean confectioner,) where all of the inventory was reportedly sold on the day available. Considering that niche hemp-derived CB products are able to gain swift and significant traction, we envision a similar pathway for some of GDET’s future offerings. Importantly, niche products such as creams and salves carry very healthy profit margins. Given the upcoming, official product introductions and aggressive rollout of its target marketing, we believe that the CB subsidiary alone could end 2019 on a $2-3Mn annual revenue run-rate.
Cryptocurrency: HyperDigital Technologies
The Company’s HyperDigital Technologies subsidiary is in the process of securing/applying for multiple MSB licenses to secure multiple money services business licenses in order to host cryptocurrency ATM (or kiosk) units throughout the country. Once deployed, these units can generate high returns per transaction, regardless of crypto pricing changes. GDET also runs a Bitcoin crypto mining operation in the Tri-State area.
The first site of the Company’s ATM is in Texas and it is possible that GDET has kiosks in as many as 8-10 states this year. Separate state licensing is required and thus the timing of application approval, licensure and deployment per state varies. These units enable consumers to purchase cryptocurrencies (Bitcoin) in digital wallet or “hard form” in exchange for cash deposits. HyperDigital generates a commission/fee per transaction. In the future the Company is exploring the option to offer Cryptocurrency POS (point of sale) operation for retailers which will allow brick and motor retailers to accept cryptocurrency as payment directly from their customers. It should be noted that while this sector has become unfavorable in many circles due to the currency values crash and widespread news regarding theft, the Crypto ATM market is booming and many currencies have rebounded over the past 2 months, creating a resurgence in interest in the space. Still, the Company’s low-cost/high return approach in its fast-growing niche should serve it well. Moreover, the industry is in the early innings of growth, is highly fragmented and GDET could emerge as a leader.
Technology: Dreamcard
Dreamcard, a separate e-commerce business line, is essentially a vanity or personalized debit/credit card service that, for a fee, allows users to create a customizable debit or credit card using its state-of the-art online platform. Dreamcard simply takes an existing debit or credit card and transfer its data and EMV chip into a new metal card of the cardholder’s design and ships it to the holder.
DreamCard has been awaiting cold-storage prototypes where the user can customize their card to store Cryptocurrencies such as Bitcoin directly onto the product. This offers users a more tangible/hands-on approach in a market that is for the most part totally virtual.
While an interesting offering, we do not believe it carries the upside potential of the subsidiaries listed above. Interestingly, these three segments have one common thread: Millennials. Millennials have significant interest in these three offerings and we believe that GDET may find ways to cross-sell or find the ties that bind them together. In essence, by virtue of targeting (not exclusively) markets in which millennials are active, GDET is also a play on the millennial market—a valuable demographic.
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With 1,500%+ Potential Upside To An Analyst Price Target, How Can You Not Have GDET On Your Radar Monday?
Mentioned earlier, GDET is knee deep in 3 booming industries: CB-products, cryptocurrency, and blockchain.
That's part of the main reason that Rob Goldman, from Goldman Small Cap Research, gives this upside filled profile a $.06 price target.
As the company keeps releasing major news, could that $.06 level be something that happens sooner rather than later?
Strong momentum could flood this idea any day as it is most likely viewed as undervalued at the moment.
If eyes start popping up on GDET, you'll want to make sure you have this hit company researched completely.
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