|Written by GSCR Staff|
|Friday, 27 December 2013 07:53|
It figures that it would take until December 27th to find what I call the best trade of the year. We have had some great ones and some stinkers, and this one carries a lot of risk. But, we believe that despite the risk, the reward could be a double or more in a matter of days as it provides investors with the first real public traded proxy for the growth in the use of Bitcoins.
Everyone has at least heard of Bitcoin. Heck, I have been toying with the idea of buying some for months. When I see even the smallest most innocuous websites accepting Bitcoins for payment, I know that this thing has legs, despite its extreme volatility as an online digital currency. An upstart company known as WPCS International Inc. (NASDAQ - $1.51 – Not Rated) released a key announcement regarding its Bitcoin venture after the close yesterday and pre-market trading assumes that it will open up 70% or more to the $2.65 level.
Here is a copy of the release: http://finance.yahoo.com/news/wpcs-announces-public-beta-release-210500070.html
In a nutshell, individuals can buy Bitcoins from one of several exchanges. However, this WPCS public beta platform is the first trading platform to enable Bitcoin traders and industry researchers to access market data and execute orders on the five most popular Bitcoin exchanges in a single application. That is huge as the disparate information and trading details made execution and trading less than smooth.
This platform, known as BTX Trader, will enable limit orders on 5 key Bitcoin exchanges along with order management and market data monitoring.
We cannot profess to provide any real financial details or what could be generated revenue wise to WPCS via this platform. However, as the best publicly traded proxy for the space, and a unique and desirable tool, WPCS has proven that being opportunistic can be incredibly rewarding. Therefore, for investors able to stomach throwing caution to the wind, WPCS offers huge upside as a story stock and Bitcoin play that could see huge upside in the coming days.
These stocks tend to have a run of no longer than 5 days or so. As a result, be prudent, and enjoy!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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