We have turned the page to a new year, filled with fresh hopes and fears. But, so far, it feels a little like a time travel trip back to the late 1990’s, with the market heading straight up no matter what’s going on in the world.
However, even as the major indices like the S&P 500, Nasdaq Composite, and Russell 2000 all seem to find new all-time highs on a daily basis, there are huge disparities in performance when you take the time to drill down into the market. In other words, within this historic bull run, this is actually a stock-picker’s market.
More specifically, it’s a “theme-picker’s market”, with groups of stocks running together around interesting emerging growth themes. Four of the top themes driving the action right now are Bitcoin, Electric Vehicles, Social Media Marketing, and Cannabis.
With that in mind, we take a look this morning at an interesting growth play for each theme, including: Riot Blockchain Inc. (NASDAQ: RIOT), Blink Charging Co (NASDAQ: BLNK), Tongji Healthcare Group Inc. (OTC US: TONJ) (d/b/a Clubhouse Media Group, post-merger), and GrowGeneration Corp (NASDAQ: GRWG).
Riot Blockchain Inc. (NASDAQ: RIOT) is a mainstay option for traders in the space at this point, and for good reason in terms of its ties to the theme. But it is also a questionable fundamental story in terms of past execution issues. However, as long as the coin stays hot, it’s hard to bet against this one. And Bitcoin has been on fire over recent months, demonstrating parabolic market gains, rising as much as 275% in the past three months.
Riot holds non-controlling investments in blockchain technology companies along with a primary mining facility located in New York under a colocation agreement with Coinmint.
Riot Blockchain Inc. (NASDAQ: RIOT) most recently announced an expected 65% increase in bitcoin mining hash rate capacity resulting from the purchase and future deployment of 15,000 S19 Pro and S19j Pro Antminers from Bitmain Technologies Limited. The approximate $35 million purchase is comprised of 3,000 S19 Pro Antminers (110 TH) and 12,000 S19j Pro Antminers (100 TH). These additional miners are scheduled for receipt and deployment starting in May 2021 and continuing through October 2021.
According to the release, this new order of miners, combined with the Company’s prior miner purchases, is expected to significantly increase Riot’s estimated bitcoin mining hash rate from the previously announced 2.3 EH/s to 3.8 EH/s. The Company has been receiving and deploying new miners consistently through 2020, including this new purchase; the delivery schedule continues into the fourth quarter of 2021.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. RIOT shares have been moving higher over the past week overall, pushing about 37% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 142% in that time on strong overall action.
Riot Blockchain Inc. (NASDAQ: RIOT) pulled in sales of $2.5M in its last reported quarterly financials, representing top line growth of 41.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($39.1M against $1.3M).
Blink Charging Co (NASDAQ: BLNK) is a key leader in electric vehicle charging equipment and has deployed over 23,000 charging stations, many of which are networked EV charging stations, enabling EV drivers to easily charge at any of the Company’s charging locations worldwide.
Blink Charging’s principal line of products and services include its Blink EV charging network, EV charging equipment, and EV charging services. Riding on the coattails of Tesla (TSLA), a number of names in the EV space have been breaking out, with BLNK near the head of the pack in fundamental and technical momentum.
Blink Charging Co (NASDAQ: BLNK) most recently announced that it has entered into a reseller agreement with The Lion Electric Company, a leading manufacturer of zero-emission buses and trucks.
According to the release, under the reseller agreement, Lion Electric, as an innovative manufacturer of purpose-built all-electric medium and heavy-duty urban vehicles, will offer Blink’s full line of charging stations to the school systems and bus fleets that utilize the company’s all-electric school buses.
And the stock has been acting well over recent days, up something like 39% in that time.
Blink Charging Co (NASDAQ: BLNK) managed to rope in revenues totaling $905K in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 18.4%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($14.9M against $6.2M).
Tongji Healthcare Group Inc. (OTC US: TONJ), aka “Clubhouse Media Group”, is in the middle of officially changing its name following a merger late last year. TONJ is a more speculative early-stage growth name compared to other stocks on our list this morning, but it deserves attention. In fact, this may be the most interesting name on the list given its unique positioning and relative lack of crowd participation to date, and the big news out from the company this morning.
The Clubhouse is an influencer-based media and marketing firm that owns and operates a collection of scenic mansions housing some of the most prominent and widely followed social media influencers, together carrying an estimated base in excess of 100 million followers. TONJ has perhaps already become one of the dominant players in the world in terms of reach and influence growth in this space, and has earned feature coverage in The New York Times, The Atlantic, Business Insider, Cosmo, Seventeen, and Forbes, among others.
To amplify that story, Tongji Healthcare Group Inc. (OTC US: TONJ) just announced this morning, along with Skip Barber Racing School (probably the most iconic and successful motorsports racing school in the world – having trained 40% of current NASCAR and INDYCAR drivers), a new partnership with Clubhouse Media influencer Lindsay Brewer, an emerging star female race car driver with more than 2 million social media followers.
Brewer is an emerging star and looks set to become a global phenomenon, with supermodel looks and the skills to make it as the first ever female Formula One driver from the US. She is set to compete in the SRO World Challenge series as a member of the Skip Barber Race Team, which is expected to draw over 100 million viewers, and it’s not hard to imagine who the feature broadcast spotlight will be on in those events.
No matter how the race goes, Clubhouse Media will be the big winner, with its reputation riding shotgun with Lindsay, and its logo on her car and helmet, racing next to Rolex, TAG Heuer, BMW, Porsche, Heineken, and other prominent global brands.
Clubhouse Media Group Inc. (OTC US: TONJ) seems set to hit the wires before long with its initial revenue growth figures. The company got started just last year. But it recently put out a release noting deals with a large number of major brands. So, there’s almost certainly growing cash from operations flowing in the door at this point, and it will be interesting to see the numbers as commercialization kicks off in a very hot space.
GrowGeneration Corp (NASDAQ: GRWG) owns and operates retail hydroponic and organic gardening stores in the United States. If you’re looking for a red-hot name in the cannabis complex, GRWG is tough to beat.
The company carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
GrowGeneration Corp (NASDAQ: GRWG) just yesterday reported preliminary record full-year 2020 revenue of $192 million, versus $80 million for 2019, an increase of 140%. As the Company continues to outpace guidance, it is increasing its 2021 revenue guidance range to $335 million-$350 million.
“We delivered strong shareholder value in 2020, with triple-digit revenue growth despite unprecedented challenges and an uncertain environment. This growth came through strategic acquisitions of best-in-class hydroponic stores, exceptional same-store sales growth, and the expansion of our omnichannel and private label offerings – a strategy we will accelerate this year,” said GrowGen CEO Darren Lampert. “We expect significant revenue growth in the year ahead as we continue to execute on these initiatives. Accordingly, we have raised our 2021 revenue guidance to $335-$350 million, our 2021 adjusted EBITDA guidance to $38 million – $40 million, and increased the number of projected GrowGen store locations to 55.”
And the stock has been acting well over recent days, up something like 32% in that time.
GrowGeneration Corp (NASDAQ: GRWG) managed to rope in revenues totaling $55M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 152.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($55.3M against $20.9M).
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