$MARA I expect a sharp rise this upcoming week!
Last week was quite a tumultuous trading week for everyone! Lots of activity and I believe that it set MARA up for this upcoming week for a sharp rise in price. Additionally I believe the price will continue to rise at a measurable pace for the next 12 months. Several factors I think contribute to a undervalued price that was further reduced towards the end of last week:
-
Lawsuits against a few of the largest Bitcoin exchanges (Binance and Coinbase) led to an immediate drop in BTC price for the week (which results in a lower MARA price).
-
MARA was in the process of an offering that opened June 5th. (Offerings typically have an immediate price drop, often followed by a price recovery)
-
MARA short rate is at a nearly all time high, increasing sharply at the end of last year and at a constant rate since then. Days to Cover is also at a nearly all time low.
These short term factors have all led to MARA being an extremely undervalued stock. There are strong indicators that the price of MARA will increase sharply in the next week (+10%-20%) and additionally continue rising in price for the next several months.
-
Bitcoin recovered and held steady at nearly the same price as before the announced lawsuits. Additionally the spread of Bitcoin was generally away from large purchasers who sold to prevent short term losses and purchased by long adopters who generally hold for longer periods of time. This will lead to a long term gain in Bitcoin price which will result in MARA price trending upwards.
-
The offering period for MARA closed after only 3 days. Additionally the offering had the stock prices at $14.24, an increase of over 50% of current pricing.
-
MARA is listed as a Strong Buy/Buy/Hold by analysts. They have a median price prediction of $13.50 and a high of $20 which represents a 40%-115% increase in price.
-
High short rate and low days to cover lead me to believe the price will increase. However, there will be some strong resistance points as investors attempt to control their losses.
-
MARA has had their largest production of Bitcoin in a single month, and investments from the offering allude to them breaking this record month after month for the next year at least. This means a high profit margin as operating costs are easily covered by the amount of Bitcoin mined.
-
The company decided to do an offering instead of selling Bitcoin as there are a lot of market indicators that Bitcoin will increase at a rate higher than the 5% option loss, meaning more profit at later dates.
To me, it’s a perfect storm for normal investors to get in at a great price. There is a lot of opportunity for short term gain over the next week/month, and additionally a strong sentiment of profit expected over the next 12 months. I think now is the perfect time to buy both stock, short calls, and long calls (depending on fee) to really make a good profit.
Thoughts?
Leave a Reply