December 15, 2020 -- InvestorsHub NewsWire -- via MarketWatch
With the end of the year fast approaching, investors are jockeying
new positions. Some part with winners and others sell their losers.
In fact, the adage that "for every sale, there is a buyer" couldn't
be more true than in the stock market, where both ecstasy and
misery can split emotions in a single trade. But, these actions
often create opportunities.
Three stocks that may be positioned to fill the role of
"opportunity taken" are micro-cap companies World Series of Golf
(OTC: WSGF),
StrikeForce Technologies (OTC: SFOR),
and Exxe Group, Inc. (OTC: AXXA).
Each earned massive attention last week.
In fact, coming off of last week's impressive gains, these three
stocks are sitting atop bullish lists, and a slew of investors
believe they are each poised to extend their gains.
And, while these companies may offer potentially exponential
gains in the coming days or weeks, set a trading strategy and stick
with it. No stocks go straight up. However, with that said,
momentum trading can be a trader's best friend. And these three
have it.
World Series of Golf Surges On Analyst Coverage
World Series of Golf (WSGF)
stock rallied sharply last week. The shares hit a high of $0.093,
and volume exceeded 139 million shares on Friday alone. That
compares to its price of $0.011 on Monday and an average volume of
roughly 2.5 million shares exchanging hands per day.
The rally started after a Goldman Small Cap Research report set
a 12-month price target of $0.20 for the stock. Compared to its
closing price on Friday, that target represents a more than 566%
gain in value. Some blogs suggest the shares can go much higher.
News on Thursday and Friday helps to support that sentiment.
On Thursday, WSGF announced that its subsidiary, Vaycaychella,
is experiencing a robust response to recent marketing efforts
targeting entrepreneurs looking to acquire and operate short-term
vacation property rentals. Management is optimistic that the
initial response rates support the company's projection to reach
$100 million in revenue during the first twelve months following
the launch of its peer-to-peer (P2P) application that will fully
automate the connection of short-term vacation property buyers with
investors.
Then, on Friday, WSGF announced a capital transaction that will
reduce balance sheet debt by $1.25 million in a deal expected to be
completed by the end of the month. Other changes are happening, as
well.
WSGF is in the process of making a corporate name change in
conjunction with its new Vaycaychella business focus. That
subsidiary provides short-term financing alternatives for vacation
rental properties that may be excluded from conventional financing
channels. Vaycaychella's mission is ambitious, to say the least.
However, the market is enormous, and the company is managed by a
team with both vision and an ability to deliver results.
At its core, WSGF believes they have designed a better way to
empower entrepreneurs to get into the short-term vacation property
rental business by utilizing sharing technology apps similar to
Airbnb, Booking.com, and Vrbo.
Investors believe in the vision as well. The combination of news
sent shares higher by more than 300% for the week on exceptionally
high volume.
StrikeForce Technologies Set To Launch Cutting Edge Conferencing
Technology
StrikeForce Technologies, Inc. (OTC
PINK: SFOR) shares soared last week after announcing that its
SafeVchat secure video conferencing platform will go live on
December 18, 2020. In addition to launching the service, the
company said it has secured distribution partners in six countries
that are already set up and ready to sell. Those deals could lead
to robust revenue streams in the near term.
Mark L. Kay, CEO of StrikeForce, said,
"We have never been as excited about launching a new
product as we are right now... the stars have definitely lined up
for us like never before. The reason why I can say that is because
of the following three reasons, we will be launching the industry's
most secure video conferencing platform, the video conferencing
industry is now forecast to hit $50+ billion by the end of 2025
(according to Global Market Insights), and Continuation Capital is
funding us with others approximately up to $2,500,000 for product
marketing for SafeVchat and to retire convertible debt."
Shares closed the week higher by an extraordinary 5253% on the
news, with more than one billion shares trading hands on the week.
The stock closed on Friday just off its high for the week, leading
investors to expect a continuation into Monday. Additional news
early in the week could certainly add more fuel to its phenomenal
run. Be careful, though.
As noted, the stock is higher by more than 5253% in a single
week. A pullback may be healthy before the stock continues to move
higher as its products develop. An overbought condition could also
send prices lower ahead of a next leg higher.
Exxe Group, Inc. Under The Radar
An under-the-radar stock that is gaining in popularity is Exxe
Group (AXXA).
Shares are trading at roughly $0.011, and the average volume stands
at approximately seven million shares exchanged daily. Exxe is an
exciting story, and it's under-the-radar profile may be short-lived
after posting record revenues in its most recent quarter.
Last month, AXXA reported that it generated $8.2 million in
gross revenues during its fiscal second quarter of 2021. That
revenue surpassed the $7.7 million record set in its previous
quarter and showed sequential growth of 5% quarter-over-quarter.
Compared to the same period last year, second-quarter revenue
increased 211% from $2,619,576, and produced net income of
$1,249,894 against a $(831,911) loss in the comparable period.
Also impressive for a micro-cap company is that total assets on
the balance sheet at the end of its second-quarter were
$206,022,467, a 32% increase from the $152,958,973 in the same
period last year. Assets of that magnitude are impressive by any
measure. And, with the stock trading at a penny a share, investors
are starting to take notice.
Clearly, the trends are higher. AXXA's $15.8M revenues in the
first half of its fiscal 2021 grew 216% compared to the same period
last year. Revenues came from AXXA's agribusiness segment as a
result of rising commodity prices. Agribusiness was Exxe's single
largest revenue contributor, followed by Real Estate.
Looking ahead, AXXA noted that its UK-based 1Myle currency
exchange is set to go live. The company estimates that 1Myle can
generate $15 million in revenues during the first twelve months of
operation from bitcoin exchange trading activities.
The sum of the parts creates a compelling thesis for investment
consideration. Strong revenues, a substantial asset base, and plans
in motion to accelerate revenue growth in the coming weeks and
quarters may show Exxe to be significantly undervalued at current
levels.
Investors are taking notice, and sent the stock 11% higher on
Friday.
Micro-Cap Stocking Stuffers
Heading into the back half of the month, the companies profiled
above have put together well thought out plans to sustain their
upward trends. Remember, no stock goes straight up, so expect
pullbacks that can be healthy to long-term appreciation. However,
the measure of risk/reward is favorable based on each company's
ability to transform its intrinsic value into shareholder
value.
Also, with each stock earning a sizable amount of attention over
the weekend, expect some erratic moves in either direction. But,
after the rush subsides, the fundamentals should replace emotion
and allow these companies to earn an appropriate valuation... with
the consensus calling for sustained appreciation.
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Source: https://www.marketwatch.com/press-release/three-red-hot-micro-caps-that-can-make-this-holiday-season-cheerful-wsgf-sfor-and-axxa-2020-12-15
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