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Blackboxstocks, Inc. Subscriber Base Hits 6000 Member Milestone; Short Position Gets Squeezed (NASDAQ: BLBX)

Blackboxstocks (NASDAQ: BLBX) shares are getting a volatile welcome after its NASDAQ uplist. Part of it is a general weakness in the broader markets. But another part is coming from an apparent and relentless group of short sellers that have coordinated to take shares lower. The proof is out there. Blogs, a misinformation campaign, and a series of inaccurate representations of its Blackboxstocks trading platform suggest the group is attacking a flank exposed by BLBX's low O/S count and even tighter public float.

But, like all trades, there comes a time to take profit. For those on the short side of the ledger, that time is now. Why? Frankly, the risk/reward proposition is now decidedly in the bull's favor. BLBX successfully raised $12 million last month, hit its highest paid subscriber levels ever, and posted record-setting revenues. That's not all. 

BLBX's guidance calls for more of the same, expecting to post another 45%-50% increase in comparative Q4 revenues. Thus, to say that short-sellers are pushing the boundaries of a sensible trade may be an understatement. The more accurate message may be that they are about to get squeezed to the degree that transforms short-term gains into potentially exponential losses. 

Time To Take Advantage

Frankly, there's nothing wrong with short-selling, and in fact, it helps create a market. And while investors on the other side of the trade can get bruised, they can always bank on the promise that when their company delivers performance, short-covering can be rocket fuel to accelerate a rally to the upside. The excellent news for BLBX investors is that Blackboxstocks is doing just that.  

Recent news is proof. BLBX shares surged by more than 23% after announcing it breached the 6,000 paid subscriber threshold. That's its highest level ever. While the stock gave back some of those gains, the volume and movement indicated that shorts are becoming increasingly exposed. Not only that, the ease at which the share price spiked showed that while short-sellers may be carrying their trade, they will be quick on the trigger to cover.

Those less savvy may want to do so sooner than later. As noted, BLBX guided to 45%-50% comparative revenue growth in Q4. Also, BLBX is in a considerably better place balance sheet wise than only a month ago. In fact, after raising $12 million, they are in their best financial shape in history. In addition, BLBX is commencing its most aggressive marketing campaign ever to get its innovative and industry-best trading platform into the hands of potentially millions. Yes, millions. 

And appreciate that intention. While it won't reach those paid subscriber numbers in a quarter, the outlook over the next few indicates it's a target that can be achieved. Keep in mind, BLBX is about to leverage the power of listing its platform to the iOS and Android app stores later this month, and expectations are for those listings to put its 6,000 paid subscriber list on a dose of steroids. Remember, more than 99% of potential BLBX users will be covered between those two platforms. Thus, with ample cash, an industry-best platform, and a historic marketing push to get its innovative trading program into the hands of users, a revenue-generating tailwind is likely to embellish its expected record-setting Q4 performance into the first part of 2022. 

That's their plan. And for investors, it can transform an exceptional 2021 into a blockbuster 2022. 

Path Of Least Resistance

And don't underestimate that probability. BLBX has made its plans as transparent as possible, part of which is to get the BLBX platform into traders' hands as quickly as possible. It won't be near as hard as some may think. Remember, BLBX will be feeding a surge in the democratized trading movement. Moreover, maximizing its ample capital war chest can exploit a perfect storm of market penetrating opportunities.

Better still, they will do so from a financial and capital structure position of strength. The millions on hand have been well noted. Indeed, it's an enormous asset. So is BLBX's record revenue growth, nearly debt-free balance sheet, and owning a best-in-class trading platform. But, there's another factor investors may be overlooking. BLBX doesn't have a whole lot of shares in the trading float. So, when BLBX publishes its expected records and new milestones are reached, share demand will likely outstrip supply. And when that happens, the path of least resistance is to the upside. Steeply. 

There's another element to making that happen. Despite rumors contrary perhaps started to fuel a bearish agenda, BLBX management is on record assuring investors that leadership is well-aligned with its base to drive shareholder value higher sooner than later. They actually provided transfer agent documentation to prove that the message board banter was not only misleading, it was false. 

Shares did spike after that announcement. But, the 23% intraday surge wasn't enough to shake the shorts entirely. Still, management did help reshape a narrative rooted in inaccuracy. And despite BLBX shares now trading below the $5.00 public offering price set in November, charts indicate that the engagement between shorts and longs has started, creating violent swings in share price on an almost daily basis. As noted, the battle now favors the bulls. 

Thus, short-side investors should tread cautiously. After all, news has a way of squeezing short-sellers into oblivion. The coordinated squeeze in GameStop (NYSE: GME) is an excellent example. And it applies to BLBX, which likely has important value-creating news in the queue. 

More importantly, news tends to trump all, and it's for that reason that short-term fluctuation shouldn't bother long-term holders. Moreover, knowing that BLBX is better positioned than ever to accelerate growth should be enough to keep informed investors rooted in the stock. Keep in mind, too, BLBX is expanding a working relationship with one of the most influential names in the business- TradeStation (NYSE: QFTA).  

Best-In-Class Platform With Partnership Strength

And that's a big deal. Even better, it allows BLBX to do more than provide its users access to a best-in-class, some say best-in-industry trading platform. Its transformative working relationship with TradeStation (NYSE: QFTA) also enhances its already comprehensive platform features. Better still, that relationship does more than validate the BLBX product; it makes it even better. In fact, integration with TradeStation helped take an already excellent platform to a level once reserved for only professional traders. Specifically, the combined powers provide traders and investors with real-time information, market insight, and lightning-fast trade execution.

There's plenty more to like. By integrating its own powerful tools with the market-leading ones at TradeStation, BLBX has become a one-stop trading spot for novice and professional traders. The better news is that in addition to TradeStation validating the BLBX platform to its own clients and opening opportunities there, it added BLBX users the ability to trade stocks and options via TradeStation without ever leaving the Blackbox platform. 

In addition, the comprehensive nature of the combined platform makes BLBX one of the only companies offering a financial technology and social media hybrid platform providing real-time proprietary analytics for stock and options traders of all levels. Comparing the BLBX platform to other retail trading tools, like those from Robinhood (NASDAQ: HOOD), BLBX separates itself quickly. Social media comments refer to the Blackboxstocks platform as Robinhood on steroids based on the differences. Why?

Foremost because Blackboxstocks is more than a typical news/buy/sell trading tool. It has those functions. But that's just a starting point for being better. Beyond what's expected, the combination of BLBX/TradeStation resources gives users a Quick-Click feature that loads proprietary automated alerts for options contracts through a simple two-click process. More importantly, that process saves traders crucial time on order entry and execution with lightning-fast execution speed. There's more. 

Users get a dual benefit from real-time Blackbox trading alerts and from TradeStation's discounted trading rate with no ticket fee to Blackbox members using the Quick-Click feature. While all the above are premium, another feature separates BLBX from others. It does most of the work.

Perhaps the most attractive feature of the platform is that it uses technology, including AI, to do most of the pre-trade legwork for its users. And its results are timely, running thousands of scans at a millisecond pace to provide users proprietary options alerts or options flow data. At that point, users can simply click on the mouse on the highlighted trade button to get orders executed at speeds usually reserved for institutional traders. Thus, while the working relationship with TradeStation is undoubtedly transformative to BLBX, it can also be for traders' portfolios.

For great reasons.

Performance Is Lightning-Fast 

Speed is one. BLBX users benefit from a lightning-fast trading platform. But it's more than fast; it's detailed. Embedded technology continuously scanning the NASDAQ, New York Stock Exchange, CBOE, and all other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. It does more. Beyond top-tier analytical performance, the BLBX platform gives users a fully interactive social media platform integrated into a user-friendly dashboard, enabling them to exchange information and ideas quickly and efficiently through a shared network. Consider it a chat room with a shared interest to make money. It can be a powerful tool. 

But, for many novice traders, it can also help level the investment playing field. The chat feature is ideal for retail investors who want to follow more seasoned investors' trades. In other words, the social aspect of the BLBX platform provides a way for traders to invest alongside more savvy ones through its live audio/video feature. That feature allows members to broadcast on their own channels to share trade ideas. And providing that ability makes the BLBX platform ideal for trading communities, and best of all, gives the entire team the simultaneous benefit of knowledge, speed, and access to real-time information.

Of course, while it's all great for traders, BLBX, the company, also needs to benefit. They are.

Revenues Surge In Q3, Guidance Is Decidedly Bullish

Last month, Blackboxstocks reported impressive Q3 and YTD results. Revenues increased by 34% to approximately $1.47 million compared to the previous year's comparative period. Its nine-month YTD results were even better. Revenues surged by more than 90% to roughly $4.42 million over 2020 totals during that period. Of course, that's now historical data. Investors are currently focused on the forward-looking narrative. And it's excellent.

Management gave Q4 guidance calling for more records to push BLBX toward Adjusted EBITDA positive status sooner than later. Notably, BLBX posted only a $(23,320) loss for nine months ended September 30, 2021, a 73% improvement over last year. 

Remember, too, that growth came organically. BLBX is in a much better position now after completing its capital raise. Also, with BLBX planning to make its platform available as iOS or Android apps for mobile devices, it may get a huge bang for its buck in the marketing sense. Again, launching to those platforms is planned to happen before the end of this year. Thus, while BLBX did well to grow its base organically, it's about to be introduced to millions of potential users. Hence, with pricing well within reach of investors and trading tools that allow retail investors to compete with the pros, optimism is high that user growth can increase exponentially as early as Q1 2022. 

Fundamentals Power Growth in 2022

Thus, while market fluctuations can be painful to watch, it's part of investing. Indeed, just because a stock moves lower is not a reason to sell. Attention to company fundamentals, its market presence, and its ability to capture and sustain new business are the objective indicators of how a company is doing. With that being the case, Blackboxstocks is doing exceptionally well. And heading into 2022, things should get even better. 

So, while day-trading may be prevalent, find a strategy that works well with specific companies. The buy and hold may be the best prescription for BLBX. After all, BLBX has what savvy investors look for: an impressive capital structure, is posting record-setting performance, has industry-best relationships, and is about to expand its platform reach to millions through iOS and Android apps. Combined, it helps articulate a bullish investment case and plants the seeds for near and long-term growth.

Thus, consider looking past the market volatility and value BLBX based on what's known and accurate. And with revenues surging, its capital position better than ever, and its platform continuously getting better, the value proposition offers a decidedly bullish bias. Indeed, taking advantage of the valuation disconnect may be timely.

 

Disclaimers: Shore Thing Media, LLC. (STM, LLC.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to twenty-five-thousand dollars cash via wire transfer by a third party to produce and syndicate content for BlackBoxStocks, Inc. for a period of one month. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website by visiting primetimeprofiles.com/disclaimer.

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