CleanSpark (CLSKD) is a stock that I’ve been following for some time. Early this month, the company earned the attention of the investing community after climbing more than 100% in just a few trading sessions.
If you missed that run, don’t worry, you’re not missing the entire opportunity. There is plenty of room for strong gains ahead. Here’s what’s going on:
What Is CleanSpark?
I’ve written about CLSKD in detail in the past. So, I’m not going to go too into detail here. If you’d like the full details, click here.
Nonetheless, CleanSpark is an energy solutions company focused on the reasonable sourcing of reliable energy for its customers. The company creates microgrid solutions using a mix of renewable energy resources and the traditional power grid for when renewable sources are too expensive or just don’t offer the capacity needed.
Importantly, the company offers two software solutions. These are known as mVSO and mPULSE. mVSO helps property owners make wise decisions when it comes to energy investments while mPULSE is the brain of the microgrid operation, controling power purchasing, storage and use. Importantly, mPULSE sources power when prices are low and uses it when prices are high, ultimately reducing energy costs.
Recent News Makes CLSKD Hard To Ignore
Throughout the month of November, CleanSpark issued a flurry of news, exciting investors for the bright future that’s likely ahead. Here are a few key points from the news:
- October 30, 2019 – The news first started to flow on October 30, 2019, when the company announced that customer adoption grew with a new agreement. The agreement, signed with Energias Limpias De CentroAmer (ELCA), has the potential to generate $627,000 in revenue for CLSKD in exchange for providing software controls and energy storage products and services.
- November 5, 2019 – In early November, the company announced that it had entered into an exclusive agreement with International Land Alliance, a publicly traded land development company. As part of the agreement, CleanSpark will have first right to refusal on all energy projects associated with International Land Alliance ILAL properties. In order to secure this exclusive first right to refusal, CLSKD agreed to make an equity investment of $500,000 into ILAL in exchange for 1,000 preferred shares and 350,000 common shares.
- November 21, 2019 – On November 21, 2019, CleanSpark didn’t make an announcement, but International Land Alliance did, and it directly relates to revenue growth at CLSKD. The company announced that site preparation had been complete at its Costa Bajamar Oasis property, opening the door for development to begin. Importantly, in the press release, ILAL pointed to the recent agreement with CLSKD. Of course, CleanSpark will be providing microgrid power solutions at this property, meaning that the recent contract with ILAL is already paying off.
Moving forward, we are expecting to see much more news. Nonetheless, the news released in the month of November was significant. Ultimately, when you combine all the press, one theme seems to be at the center of the news. CLSKD is laser focused on revenue growth and has recently entered new agreements that will likely lead to significant growth ahead.
It’s actions like these that lead a company to long term success. H.C. Wainwright an analyst firm that has been on the street for more than 8 decades, believes that even after recent gains, there’s plenty more room for growth. In fact, the firm recommends buying the stock and set a price target of $4, implying an upside potial of multiple 5 multiples over the next 12 months. In their report, H.C. Wainwright pointed to the likelihood of significant revenue growth ahead as a basis for such a bullish stance.
All in all CleanSpark may have seen strong gains in the month of November. However, if the recent news issued by the company and the overwhelmingly positive views of H.C. Wainwright Analysts are any indication of what we can expect moving forward, CLSKD is a compelling investment opportunity to say the least.
Don’t Miss The Next Big Story!
Disclosure – The author holds no position nor intends to enter into any position on any stock mentioned herein. The author provided his own views, which may differ from those of Alpha Stock News or CNA Finance, its parent company. CNA Finance was paid an initial payment of forty thousand dollars to provide 30 days of research, writing, advertising, and other digital investor relations services to CleanSpak. CNA Finance was later paid an additional thirty thousand dollars to increase the advertising budget associated with this campaign.