LOTM related accounts have positions in MKTY & GBTC, our focus today
It seems safe to say Mechanical Technology (MKTY)* is running with the “Crypto Currency Pack”.
LOTM Selected Ideas with TC2000.com date: 12.17.20
A number of micro-cap companies with exposure to crypto mining were up 10% to 58% on Tuesday. Notably missing from the percent gain leaders were the rock stars, Advanced Micro Device (AMD) $96.85 and Nvidia (NVDA) $529.70 – both down slightly on the day. Perhaps a sign the rotation to small companies is still in play.
Does Valuation Matter? Maybe not, but Comps should!
We place MKTY in the same comparison (comp)group as RIOT Blockchain (RIOT) $10.76 and Marathon Patents (MARA) $8.23
- All three are about $8 million in annual revenue,
- all three are debt free,
- MKTY is the only one profitable.
- The biggest difference is, RIOT and MARA are solely, Crypto Miners and Blockchain related while MKTY is just getting started in the Crypto and Blockchain related business. Mechanical Tech’s scientific instruments division, MTI Instruments, is the work horse providing the revenue and profits for the newly formed (January 2020) EcoChain subsidiary.
If the Market Cap of RIOT and MARA dropped by 50%, (from today’s price) and MKTY* goes up to meet that lower valuation, MKTY would be at a $20.00 comp to MARA and a $25 comp to RIOT. That combination of events is not probable to happen, but fun to speculate about. That’s why we do the comps. All things being equal, that’s where the water level settles.
Let’s check into revenue comps towards the end of 2021 and see what MKTY can do to catch up through their EcoChain subsidiary. RIOT and MARA are expecting big revenue increases and projecting profitability in 2021 also.
Fancy these thoughts, MKTY owners. MKTY only has 11.4 million shares fully diluted with about six million floating.
Great action Tuesday in Bitcoin as the Congress and the senate contemplate additional stimulus.
Dated: 12.17.20
LOTM’s Tom Linzmeier conversation with MKTY management December 10, 2020 is linked here. It is about a 30-minute conversation and posted as Current Audio Postings.
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* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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