If Harbinger Research's models are accurate, investors can look forward to Blackboxstocks Inc. (OTCMKTS: BLBX) shares rising by more than 290% during the next twelve months. Although that number is attractive on its own, the expected growth in revenue is more impressive, with Harbinger Research analyst, Brian Connell, CFA, suggesting the company can drive a more than 350% increase in 2020 revenues followed by an additional 290% growth in 2021. There are reasons for Harbinger's bullish sentiment.
First, they note that BlackBox is already taking advantage of its strong social media and investor forum presence. Currently, more than 100 videos are posted to YouTube alone by active investors, affiliates, and clients supporting its high-end trading tools that include social, functional, and educational content. 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.
Notably, Harbinger also highlights a unique and significant value opportunity emerging from the skyrocketing number of part-time and full-time traders in the United States due to pandemic related job loss. That dynamic, they believe, positions BlackBox well to 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, as suggested in a 2018 Modern Trader Magazine article that estimated the number of active European traders at 3.1 million and at 13.9 million worldwide. They further note that since BlackBox had only approximately 3,500 users as of the end of June, BlackBox's available market can be considered limitless, at least for the next several years. And from a competitive perspective, despite the landscape appearing to be crowded by a relatively large number of trading platforms, few have the comprehensive and user-friendly features that BlackBox brings to its users. Thus, they do not see current competition as a significant constraint to continuing its hyper-growth pace.
Best of all, for BlackBox and its investors, their unique technology, social networking integration, and in-depth educational platform are rapidly gaining user adoption. That migration should immediately translate into revenue growth.
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Substantial Growth In 2020 Confirmed
For those unfamiliar with the company, BlackBox develops and markets 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, but 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.
While investors were certainly expecting growth in 2020, they may have underestimated the speed at which it happened. 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. Those numbers suggest that the company is in a state of hyper-growth mode for both user attraction and revenue increases.
Harbinger analysts support that assertion by pointing to several factors contributing to the triple-digit growth. First, they note that the company's product has matured in terms of reliability, usability, and feature-depth, culminating in developing a comprehensive and highly valuable trading system over the past two years. Secondly, beginning in February of 2020, BlackBox gained access to enough capital to commence a structured, long-term digital marketing campaign to attract users. That campaign has been so effective that the company remains well-positioned to attract additional capital to secure its planned NasdaqCM listing and secondary offering during the first half of 2021.
From a competitive perspective, it's important to note that while competing platforms may offer trading and educational tools similar to those of BlackBox, most fail to integrate and benefit from one of the most important aspects of a socially targeted trading platform - community.
In that respect, BlackBox is doing things differently by delivering its users a sense of lifestyle, culture, and community. It's "social trading" platform, for instance, 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.
According to Connell, its standout competitive advantage is that the system 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
New investors are arriving at the BlackBox party at a good time. Others have been with the company for a while, supporting its highly experienced leadership team while navigating BlackBox through its first several challenging years. For them, patience can be rewarding. They, too, can benefit from the company now being cash-flow positive, having a vastly stronger balance sheet, and earning access to the growth capital it needs.
Now, with analyst estimates projecting steep growth, the potential rewards of perseverance are in focus. In just the past three months, new subscriptions have nearly doubled. Plus, there are substantial increases in its community of traders that Harbinger thinks can act as a fuel to feed its revenue building momentum over the coming four to six quarters.
Moreover, with BlackBox having an excellent management team in place, coupled with a planned NasdaqCM uplisting and secondary stock offering in the near term, the stock at current levels may be significantly undervalued. Their STRONG BUY rating also iterates its conviction that the stock is well-positioned for both near-and long-term value appreciation with a 12-month price-target set at $10.53 per share.
Set Up For Massive Growth Opportunities
The exponential growth during 2020 may be the prelude to better things to come. The momentum for BlackBox does not appear to be a one-time event by any means. And, with the growth of active daily traders who focus on earning income through stocks and options, the company can target an anxious market of roughly 13.9 million people. Moreover, with the team already demonstrating its ability to attract new users through a well-orchestrated strategic digital marketing plan, getting to those traders may not be as complicated as once thought. That's because while having a good product attracts users, having the best product opens the door to a substantially larger market opportunity. BlackBox, by comparison, may be on the verge of earning that best-in-class title. The hundreds of endorsements on YouTube and social media help confirm that thesis. The company's 5-star Google rating (extremely hard to get) also suggests that the company is earning respect from serious media conglomerates.
At the end of the day, the incredibly unique and inviting part of the company's platform is that its user-friendly software packages make trading both easy and fun, even for novice traders. However, keep in mind, too, that the BlackBox platform 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.
More importantly, testimonials are rich in number, suggesting that the powerful tools integrated into the system can lead toward profitable and disciplined trading. Can BlackBox guarantee increasing one's wealth? Certainly not. But, they are one of the few platforms and software package providers that educate users that successful trading requires study, discipline, focus, and ideally, the tutelage of trustworthy experts who understand the business. And, BlackBox is one of the few, if only, platforms that teach traders how to ignore the noise and focus on what matters when it matters. From a trading perspective, that's the gold standard of education.
Furthermore, in the trading and investment business, where knowledge, speed, and access to real-time information can make or break a trade, having an expert ally on your side can make a monumental difference in reaching success. BlackBox, and its broad community of users, is definitely an asset to befriend.
To download Harbinger Research's complete research coverage report for Blackboxstocks, Inc. that includes price targets, revenue forecast, business overview, and disclaimers- click HERE. https://d1io3yog0oux5.cloudfront.net/harbingerresearch/media/679231b17033b83ec90af16683eb3aca.pdf
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