Saturday, 7 July 2018

Black Box Skyrockets After Agreement With The Most Well-Known Social Media Company In The World

On June 27, we recommended Camber Energy, Inc. (CEI) in our write up "Camber Energy Can Move Like PEDEVCO As A NOT Sympathy Play" after it moved up 79% to $0.47 on 24 million volume. We had a $1-$2 target on CEI and it hit that target with a high of $1.80 the next day, netting substantial profits for us and our followers who were nimble enough to sell in our recommended range. We think that Black Box Corporation (BBOX) has a good chance to follow up Friday's 114% move to $2.03 on 62 million in volume and our personal target is $3-$5. We are up to 616 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We are closing in on 3,000 followers on Twitter as well. If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

BBOX was up on some very obvious good news as it was Awarded $10M+ Data Center Project for Global Social Media Giant. The tone of news release stating "the most well-known social media company in the world" has us assuming that this deal is with Facebook (FB). While the initial contract award is for $10 million, it could total more than $300 million for BBOX over a 5 to 10 year period. Just as CEI has pulled back to $0.57 after hitting our target, BBOX is not without its risks as it has liquidity issues and couldn't file its annual report on time. That being said, the stock was already punished for that as it dropped from $2.03 down to $0.75 earlier in the week before recovering back to $2.03 on this news of the new contract. This new deal basically offsets the bad news of the liquidity issues and we think it should continue to cause the stock to rise since the market cap is only $30 million after Friday's rise.

The stock was $8 a year ago and was well over $20 a few years ago when things were looking brighter. We think this new agreement will help the company return to its bright days though the threat of the liquidity issue certainly brings on added volatility. The company stated that it has enough money to December 2018 which gives it plenty of time to renegotiate its debt given this new contract.

We think BBOX can reach $3-$5 next week and we expect the stock to be volatile. Nothing is guaranteed in life and price targets on volatile small cap stocks are no different, so do your own research. We may update this report with new findings over the weekend, so stay tuned.

Update: We have issued a new write up here.

Disclosure: We are long BBOX

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