Date : October 14, 2019
New Opportunity: GD Entertainment & Technology Inc. (OTCMKTS:GDET)
- Recent powerful build in high-quality inventory in CBD segment suggests positive catalysts ahead
- Company in position to expand Crypto Mining operations after positive negotiating result in energy cost-basis
- Hints of coming reduction in outstanding shares suggest cap table boost ahead
- Technicals favor long-side strategies in GDET shares on key support hold
There are two great trends that define the most aggressive long-term growth projections in 21st century financial markets, both of which will likely have a hand in defining the world investors face in the next decade to come: Blockchain and CBD.
In each case, we are dealing with a formerly esoteric niche market that is in the process of inevitably becoming a mainstream force in everyone’s life over coming years. But, as such things always go, there are moments when markets get ahead of themselves.
It happened in internet stocks in the year 2000. Think of the Nasdaq, which lost 89% of its value from 2000-2002… but if you bought the Nasdaq in 2002, you would now be sitting on about 900% gains on blue-chip stocks.
And it has also happened for both Crypto and CBD, with each suffering strong bear trends over the past year. But none of that shifts the fact that the CBD space is set to grow by over 900% in 2019 and by many times that by 2023, or that blockchain is set to be a $23 billion industry by 2023 according to Statista.
However, as Bitcoin puts in a clear bear market bottom and turns higher in 2019, and CBD stocks empty out in a capitulation and then start to find a fresh bid in recent days, right now may be the perfect time to move back into both spaces.
One stock that will benefit perhaps more than any other in a world where Bitcoin and CBD are both moving back into the spotlight is GD Entertainment & Technology Inc. (OTCMKTS:GDET). This is a legit play with serious operations in both spaces, and every indication that the game is set to expand and trigger powerful revenue growth on the near-term horizon.
Who is GDET
GD Entertainment & Technology Inc. (OTCMKTS:GDET) focuses on high growth industries to fulfill a diverse selection of premium products nationwide.
The company operates in two basic segments: cryptocurrency mining/services and CBD-based products. Both segments are currently doing real business and will likely contribute to significant revenue growth over the next 3-month and 12-month periods.
Cryptocurrency Segment. The main factor in valuing the company right now, overall, is the fact that it has a crypto mining farm, fully-owned, running 100 top-tier miners, with all-in costs at $0.065/kwh, which is an exceptional level of efficiency for this scale of mining. The company has also indicated that it is ready to expand that mining fleet over the near term.
By our calculations, that cost-basis suggests this segment should be profitable at current bitcoin prices and, hence, will be massively profitable as BTC moves higher in the future.
The company also has its HyperDigital Technologies subsidiary, the Cryptocurrency ATM business, which aims to secure multiple MSB, money services business, licenses in order to host ATM units throughout the country. In essence, this is a business segment that harbors cash machines that allow you to withdraw dollars from your BTC account, or deposit dollars into BTC account designation – it’s a machine that conducts BTC-USD transactions.
In addition, the company also has its DreamCard subsidiary, a GDET subsidiary specializing in fully customizable and premium quality credit/debit cards. As news stories about hacked crypto accounts multiply, folks are starting to realize that the safest place to store crypto assets is in “cold storage”. DreamCard is the perfect way to get that done, safely and stylishly.
The Cryptocurrency cold storage market has been forecasted to reach more than $15 billion by 2025
CBD Segment. The company has also been making waves as a recent entrant into the super-charged CBD-based products marketplace through its subsidiary, The Greenery. See its beautiful ecommerce storefront here: thegreeneryco.com.
The low-down on the Greenery is that it has a popular Honey Hemp CBD recipe that has evolved in partnership with a local “homegrown” honey supplier located in Florida.
The company recently announced that it had placed a major order with their industry leading manufacturer to restock current inventory and expand its entire product catalog. Management just recently took delivery of both the cosmeceutical and pet wellness lines and is now awaiting a shipment of the all-new organic CBD gummies for the active lifestyle product line.
The Honey Hemp line is the Company’s first product in the food and beverage category and aims to target audiences both in the retail and commercial space. The Greenery team is currently working on launching the product to be available for purchase on the company’s website, www.thegreeneryco.com and through its wholesale program.
The CBD dog treat line is the second product to showcase the company’s new design initiative after hiring Juicyorange, a major Manhattan based digital creative agency. The Greenery team is currently working on launching the product to be available for purchase on The Greenery’s website, www.thegreeneryco.com and through its wholesale program.
We are also particularly on alert for a potential partnership that could put Greenery products on physical chain store shelves.
The company recently put out a strong shareholder letter that gives the reader a comprehensive sense of the story in play for GDET.
One key note from that release was the following: “I am also pleased to announce that shareholders can expect several corporate actions in the upcoming term, including the return of shares to treasury, in an effort to increase value. My goal is to support both our customers and shareholders who continue to support the Company’s growth.”
If there is any weakness in this story, it is the size of the outstanding share count. A return of shares to treasury would be an enormous boost to the simple supply/demand story that defines the trading market for GDET shares.
In addition, the company recently announced that, in September, it began receiving discounted electricity rates secured with a major electricity provider early this year. That has enormous implications for the profitability of its cryptocurrency mining operations.
According to the release, management recently announced that after bidding amongst several electricity providers, they were able to secure a long-term contract with new rates that will provide an annual savings upwards of 41%. The Company’s cryptocurrency mining facility has also undergone several upgrades to the building’s ventilation system in order to support the operation as well as the future expansion that is currently underway. This expansion will include the installation of brand new ASIC miners in order to increase the overall hashrate and ultimately produce more Bitcoin.
The company has also been stocking up what appears to be an extremely impressive inventory of CBD-based products ready to hit the market and fire up revenue growth.
In an announcement dated August 22, the company reported that The Greenery received delivery of 20,000 units of its CBD Dog Treats as a part of their newest pet wellness product line.
Then, in a second announcement dated September 3, the company hit the wires with a communication noting that The Greenery received delivery of over 1,000 units of their newest signature Honey Hemp product.
We see those as connected communications that represent a widespread inventory building phase ahead of a powerful go-to-market attack that will likely consume operations in a very shareholder-positive manner through year-end.
In other words, the list of recent catalysts represents an army of positive events marching toward the market right now, including increasing scale and profitability in the crypto segment and a powerful unmonetized asset built up in the form of high-quality CBD-based product inventory set to move into distribution and monetization.
GDET shares showed a very strong signal on Friday, breaking lower under the lower Bollinger Band, and then rallying sharply to close nearly back in the green. It was a strong show of support and demand for shares. And, given the fundamental momentum that business has in place, that should surprise no one.
The Bollinger Band support has happened several times in this stock over the past few months, each time resulting in a strong multi-day rally of at least 100%. Given that the company appears poised to reduce shares, expand crypto mining scale after widening profitability, and monetize a massive inventory of premium CBD products, that would make sense this time around as well.
Note that, in this case, the BB support signal is coming at a level that was last tapped as support back in March right in front of a 350% rally.
GDET (GD Entertainment & Technology Inc.) focuses on high growth industries to fulfill a diverse selection of premium products nationwide.
The company currently manufactures, wholesales, and markets a portfolio of blockchain/financial service-based products. GDET strives to become one of the premier Cryptocurrency mining facilities that is client-focused and dedicated to creating a new standard in the Blockchain space based on security and transparency. GDET has also developed a strong relationship with suppliers worldwide to ensure future purchasing.
The company currently has two subsidiaries, DreamCard and HyperDigital Technologies, which both offer a selection of transactional-based products and services. DreamCard allows users to create a customizable debit or credit card using its state of the art online platform. HyperDigital Technologies is the Cryptocurrency ATM sector of GDET and aims to secure multiple MSB, money services business, licenses in order to host ATM units throughout the country.
The company is also becoming an emerging leader in the explosive CBD space through its wholly-owned subsidiary, The Greenery, which is already active as an ecommerce vehicle and is set for a wider go-to-market with a well-developed inventory of unique and powerful CBD-based products for both people and pets.
- GDET is a viable emerging leader in both the $23B Cryptocurrency Mining and the CBD-based products market, which is set to grow by 900% in 2019.
- GDET is making real money, with quarterly y/y revs increasing at 126% and a strong go-to-market lined up to monetize a powerful CBD product inventory to dramatically accelerate that growth in the months ahead.
- GDET recently negotiated a lower cost-basis to amplify its profitability in its Crypto mining operations.
- GDET also just receives large orders of both its Honey Hemp and CBD-for-Pets CBD products at it’s the Greenery subsidiary.
- GDET is coming off an RSI trough under 40, pointing to a massively oversold stock now heading back the other way.
- GDET just recorded a MACD Bullish reversal, suggesting a technical change in trend.
- GDET shares also just dropped to hit powerful chart level and Bollinger Band support in confluence and then rebounded sharply to potentially set up a bullish pattern heading into this week.
asdaq Capital Market within next twelve months.
GDET is possibly the only way to carry a single position that represents a viable opportunity in both the explosive cryptocurrency mining and CBD-based products markets simultaneously.
The market opportunities, in each case, are huge, measuring well into the billions of dollars. And the company is on track with significant operations dedicated to each pursuit. Growth is written into the equation with expanding mining and distribution set to come into play soon.
The company has collected a massive inventory of CBD products ready to go to market and recently negotiated more favorable rates for its cost-basis on its crypto mining. It has also indicated in a recent communication that a major reduction in outstanding shares is in the works.
All of that represents a case that favors an extremely positive view of the stock’s technical potential, which is undergirded by a very strong technical configuration.