Harbinger Research came out with a compelling coverage report that is decidedly bullish for Blackboxstocks Inc. (OTCMKTS: BLBX). In addition to a price target of $10.53 in the next 12-months, Harbinger Research analyst, Brian Connell, CFA, suggests the company is positioned to increase its revenues by at least 350% in 2020 followed by an additional 290% growth in 2021. If share price projection models are correct, the rise will represent a 256% increase from its recent $2.95 closing price.
The bullish thesis is generated by Harbinger's opinion that BlackBox is taking advantage of its strong social media and investor forum presence. Already, more than 100 videos are posted to YouTube by active investors, affiliates, and clients supporting its high-end trading tools. More importantly, Harbinger's valuation models suggest that BlackBox growth will continue its momentum established during the early part of 2020 from having a best-in-class product in a rapidly growing SaaS segment.
BlackBox management, too, is optimistic that they can seize a significant value opportunity stemming from the skyrocketing number of part-time and full-time traders in the United States due to pandemic related job loss. That initiative can target millions of people engaged in day-trading, swing-trading, and options market trading. And that's only the US market.
The BlackBox target market increases substantially on the global stage. An article published in Modern Trader Magazine in 2018 estimated the number of active European traders at 3.1 million and at 13.9 million worldwide. Because BlackBox currently has an estimated 3,500 users as of the end of June, converting just a small portion of its available market pool can contribute toward exponential growth for the next several years.
That growth is already happening. Best of all, for BlackBox and its investors, their unique technology, social networking integration, and in-depth educational platform show no signs of slowing down its pace of user adoption. Proof of that growth should show in the company's next financial filing.
Video Link: https://www.youtube.com/embed/i-luSNDDwA4
2020 Revenue Growth Expected At 350%
BlackBox is driving its revenue growth by developing and marketing a trading and social media platform offering real-time proprietary analytics for stock and options traders of all levels. The company's current system is available via a Web browser for desktop and mobile, and plans are in place to make the platform accessible as an app on both Apple and Google mobile devices. BlackBox's differentiating strengths include integrated text and voice "social" features, institutional caliber and proprietary trading analytics, and real-time mentoring for novice traders. The company is based in Dallas, Texas, and trades on the over-the-counter market under the symbol BLBX. Plans to uplist to a more senior NASDAQ exchange are already underway, with its surge in growth helping to expedite that initiative.
Company growth has been impressive. From BlackBox's recent 10-Q and 10-K filings with the SEC, its revenues over the first two quarters of 2020 increased 110.2% compared to revenues of the prior two same quarters. Moreover, its second quarter of 2020 sales exceeded first-quarter revenues by 94.8% on a sequential basis. Harbinger suggests that those numbers put BlackBox in a hyper-growth state that can translate to more users, higher revenues, and a broadening of its platform base.
Further, at least two important factors contribute to its triple-digit growth. First, the company's product has matured in terms of reliability, usability, and feature-depth. Secondly, beginning in February of 2020, BlackBox secured access to enough capital to commence a structured, long-term digital marketing campaign to attract users. Part of that long-term campaign is to attract additional capital on non-dilutive terms and secure its planned uplist to the NasdaqCM.
From a competitive perspective, BlackBox is creating competitive distance from rivals by integrating into its platform one of the most important aspects of a socially targeted trading platform – community. In fact, BlackBox is one of the only trading platforms that delivers users a sense of lifestyle, culture, and community. For instance, its "social trading" platform allows "broadcast enabled social media" interaction, both for sharing trading ideas and for helping community members learn from each other. The system also integrates a combination of alerts and analytics, training, and one-on-one mentoring.
Those advantages are substantial and may position the system as the only trading tool that offers not only real-time data but also a real-time environment for idea exchange. Both advantages position the system as a best-in-class platform for active traders.
A Value Proposition In-Play
It's important to note that BlackBox is cash-flow positive, has vastly improved its balance sheet, and is leveraging its capital to expedite its growth. Further, in just the past three months, new subscriptions have nearly doubled. Plus, its community of traders is growing, which can act as a fuel to feed its revenue building momentum over the coming four to six quarters.
The prospects for BlackBox get stronger when combining its strengths. They have an excellent management team and the capital to complete its planned NasdaqCM uplisting. Also, a secondary stock offering may be in the cards to raise additional funds in the near-term if the terms are right. Management has noted that they prefer non-dilutive financing alternatives. The sum of the parts may show the stock at current levels to be significantly undervalued. Moreover, the exponential growth during 2020 may be the prelude to better things to come.
The momentum for BlackBox appears to be gaining steam. That's good news as the company stays focused on targeting an anxious market of roughly 13.9 million people. The message they are delivering has been clear- having a good product attracts users, but having the best product opens the door to a substantially larger market opportunity. The hundreds of endorsements on YouTube and social media, as well as the company's 5-star Google rating (tough to get), suggest that the company may indeed be deserving of the title "best" when being compared to other trading platforms.
At the end of the day, its user-friendly software packages that make trading both easy and fun will be the bridge to its next catalyst. The company notes that its software scales with user knowledge. Thus, while it is a fantastic platform for market newbies, seasoned traders and professionals consider the platform a "must-have" tool as well. That about covers the entire trading universe.
To download Harbinger Research's complete research coverage report for Blackboxstocks, Inc. that includes price targets, revenue forecast, business overview, and disclaimers- click HERE.
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