Riot Blockchain (RIOT) Investors Should Look To Mogo (MOGO) Stock

Mogo Inc MOGO Stock News

Riot Blockchain Inc (NASDAQ: RIOT) has garnered quite a bit of attention this year. Following Bitcoin upward, the stock has climbed over 200% so far this year. Considering the dramatic gains, there’s a strong argument that this run is over and it’s time to take your profits and move on. 

But is the run over? What’s the next big move?

In my view, RIOT is highly overvalued and ready for a bearish reversal. At the same time, Mogo Inc (NASDAQ: MOGO) is emerging as a leader in Canadian FinTech and provides much safer exposure to Bitcoin-related gains. Here’s how I see it:

The RIOT Stock Run Is Coming To An End

As mentioned above, Riot Blockchain has had an incredible run year to date. Nonetheless, in my view, the run is coming to an end. The fact of the matter is that the stock is highly overvalued, which became very clear with their earnings release earlier this week. 

The fact of the matter is that Riot Blockchain is blowing through money, and while the company is generating a few million in revenue per quarter, it’s actually losing massive amounts of money on the net. 

This only serves to validate an opinion posted by Hindenberg Research in early June, suggesting that in order for Riot Blockchain to reach profits, Bitcoin would have to climb to $18,000. At the same time, Hindenburg pointed out that RIOT has nothing proprietary and duplicating the company’s activities would only cost about $12 million to do, a far cry from the company’s current market cap of more than $160 million. 

The fact of the matter is that RIOT has been being snapped up by investors hoping to gain exposure to the recent run in the value of bitcoin, causing a vast overvaluation of a company that really has little to offer. 

Nonetheless, if you took the ride since the beginning of the year, you’re enjoying great profits. It’s time to cash out and look elsewhere. I strongly suggest looking at Mogo. 

Why MOGO Stock Should Be On Your Radar

So, you’ve made a killing with Riot Blockchain. Great job. Now it’s time to send that money out to work for you again. Mogo is a great place to look, especially if you want to maintain exposure to the recent run in Bitcoin, but with far lower risk than what you would experience investing in Riot Blockchain. 

MOGO is nothing like RIOT. Instead, it’s more like the Square (NASDAQ: SQ) Cash App. The company offers access to bitcoin along with a full suite of financial services through an intuitive app that is increasingly being called the Square Cash App of Canada

Mogo makes Bitcoin available through MogoCrypto, a feature of the Mogo App, it also provides digital banking services linked to a MogoSpend Platinum Visa card that allows users to better control their finances while improving the health of the global environment. The company also offers a suit of lending and other products designed to improve financial health. 

When comparing valuations between MOGO and RIOT, the opportunity becomes very clear. During the most recent quarter, Riot only generated revenue of about $1.9 million, that’s less than 25% of the $8 million MOGO reported for the second quarter. Not to mention, Mogo reported 49% EBITDA margin on that revenue. However, Riot Blockchain trades with a market cap that’s about three times that of MOGO. 

It’s also worth mentioning that Mogo generated cash flow of $5.5 million in the second quarter while increasing its user base by around 20%, now providing services to more than 1 million members. 

At the same time, Mogo has a real company with proprietary technology that gives it a competitive advantage and ability to grow to profit, regardless of what happens with Bitcoin.

The Bottom Line

The bottom line here is simple, the run in the value of Riot Blockchain has been highly overblown, and as a result, the stock is extremely overvalued. Now, it’s time to start taking profits and looking for other growth opportunities. 

Mogo is the picture of the opportunities that you should be looking for. The company is on the verge of profits, highly undervalued when compared to its peers, and has been experiencing a sharp increase in liquidity. 

While providing exposure to Bitcoin, the company also has a highly diverse product offering, helping to protect your investment from any reversal that may take place in the cryptocurrency. 

An investment in the stock is also supported by four credible research firms, including Raymond James, who recently initiated coverage on the stock with a CA$4 price target, suggesting serious gains to come.

With everything falling in line for MOGO, the stock has the potential to be the next big fintech play to return gains in multiples. 

[vc_row full_width=”stretch_row_content td-stretch-content”][vc_column][tdm_block_hero title_text=”R2V0JTIwRnJlZSUyMEFsZXJ0cw==” title_size=”tdm-title-bg” description=”Sm9pbiUyMG91ciUyMGZyZWUlMjBtYWlsaW5nJTIwbGlzdCUyMHRvJTIwcmVjZWl2ZSUyMHN0b2NrJTIwYWxlcnRzIQ==” button_text=”Join Our Mailing List Here” button_tdicon=”tdc-font-fa tdc-font-fa-chevron-right” button_url=”” tds_button=”tds_button3″ button_size=”tdm-btn-lg” button_tdicon-1=”tdc-font-fa tdc-font-fa-search” tds_button-1=”tds_button3″ button_size-1=”tdm-btn-lg” block_width=”1200″ content_align_horizontal=”content-horiz-center” content_align_vertical=”content-vert-center” background=”eyJ0eXBlIjoiZ3JhZGllbnQiLCJjb2xvcjEiOiJyZ2JhKDIyLDExMiwxOTEsMC44NSkiLCJjb2xvcjIiOiJyZ2JhKDAsMCwwLDAuODUpIiwibWl4ZWRDb2xvcnMiOltdLCJjc3MiOiJiYWNrZ3JvdW5kOiAtd2Via2l0LWxpbmVhci1ncmFkaWVudCgwZGVnLHJnYmEoMCwwLDAsMC44NSkscmdiYSgyMiwxMTIsMTkxLDAuODUpKTtiYWNrZ3JvdW5kOiBsaW5lYXItZ3JhZGllbnQoMGRlZyxyZ2JhKDAsMCwwLDAuODUpLHJnYmEoMjIsMTEyLDE5MSwwLjg1KSk7IiwiY3NzUGFyYW1zIjoiMGRlZyxyZ2JhKDAsMCwwLDAuODUpLHJnYmEoMjIsMTEyLDE5MSwwLjg1KSJ9″][/vc_column][/vc_row]

This website/newsletter is owned, operated and edited by CNA Finance, LLC. Any wording found in this e-mail or disclaimer referencing to “I” or “we” or “our” or “CNA Finance” refers to CNA Finance, LLC. This webpage/newsletter is a paid advertisement, not a recommendation nor an offer to buy or sell securities. Our business model is to be financially compensated to publish information and promote small public companies. By reading our newsletter and our website you agree to the terms of our disclaimer, which are subject to change at any time. We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature and are unqualified to give investment recommendations. Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis for making investment decisions and is for entertainment purposes only. At most, this communication should serve only as a starting point to do your own research and consult with a licensed professional regarding the companies profiled and discussed. Conduct your own research. Companies with low price per share are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service you agree not to hold our site, its editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters or on our website. We do not advise any reader to take any specific action. Losses can be larger than expected if the company experiences any problems with liquidity or wide spreads. Our website and newsletter are for entertainment purposes only. Never invest purely based on our alerts. Gains mentioned in our newsletter and on our website may be based on end-of-day or intraday data. This publication and their owners do not own any shares in stocks mentioned unless stated in page disclosures. If we own any shares we will list the information relevant to the stock and number of shares here. CNA Finance, parent company to Alpha Stock News, receives payment to publish content and promote publicly traded companies. Pursuant to an agreement between CNA Finance and Mogo, CNA Finance has been hired for a period beginning on 7/6/20 and ending on 9/6/20 to conduct digital advertising and marketing and publicly disseminate information about MOGO via Websites and Email. We have an agreement and have been paid twenty five thousand dollars via bank wire transfer to cover the cost of content production and publication through the term of the agreement.This compensation is a major conflict of interest in our ability to be unbiased regarding. Therefore, this communication should be viewed as a commercial advertisement only. Any non-compensated alerts are purely for the purpose of expanding our database for the benefit of our future financially compensated digital outreach efforts. Frequently companies profiled in our alerts may experience a large increase in volume and share price during the course of digital outreach marketing, which may end as soon as the marketing ceases. Our emails may contain forward-looking statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our email newsletters and on our website is believed to be accurate and correct, but has not been independently verified and is not guaranteed to be correct. The information is collected from public sources, such as the profiled company’s website and press releases, but is not researched or verified in any way whatsoever to ensure the publicly available information is correct and Mogo has not approved the content of this site. Furthermore, CNA Finance often employs independent contractor writers who may make errors when researching information and preparing these communications regarding profiled companies. Independent writers’ works are double-checked and verified before publication, but it is certainly possible for errors or omissions to take place during editing of independent contractor writer’s communications regarding the profiled company(s). You should assume all information in all of our communications is incorrect until you personally verify the information, and again are encouraged to never invest based on the information contained in our written communications. The information in our disclaimers is subject to change at any time without notice.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.