Navigating the razor’s edge of the crypto markets

Tuesday, 21 November 2017
Melbourne, Australia
By Bernd Struben

  • Next stop US$10,000…
  • Publicly listed companies want in on ICOs
  • 100-to-1 in the Stock Market
  • A reminder to our Alliance Members

Did you snag any shares of Netwealth Group Ltd [ASX:NWL] at market open yesterday?

Or better yet, did you manage to get in on the initial public offering (IPO)?

Netwealth just listed on the ASX yesterday. Investors who bought into the IPO are laughing, as the stock opened at a 44% premium to its issue price.

From The Australian Financial Review:

The stock, which was issued at $3.70 a share in the third biggest float of the calendar year, opened at $4.88 on Monday and closed at $5.32. This represented a gain of 43.78 per cent and pushed the 17-year-old company’s market capitalisation to over $1.26 billion…

Melbourne-based Netwealth provides a range of wealth management products and services to financial advisers and wealthy investors, via its proprietary in-house platform. It is not aligned with any banks or other financial services groups…

An unnamed Netwealth shareholder said the independent platforms would continue to steal market share from the big players as they divest their wealth arms and planners, who place 75 per cent of their clients’ money on platforms, look for technology that increases productivity and gives them more control.

At time of writing, shares are trading for $5.36. That’s a handy 9.84% gain from yesterday’s market open. And it puts the stock at a forward price to earnings (PE) ratio of 67 times.

That tells you something about the market’s expectations for Netwealth’s future earnings. As most investors certainly aren’t hoping to wait 67 years to double their money.

It also tells you something about the rapid growth of technology in the financial world. Companies that are too slow to adapt — the Big Four banks in this case — are losing market share to nimbler, more tech savvy players.

I’m no fan of buzzwords, but fintech is one we’ll all have to get used to. Cryptos, of course, is another.

More after the markets…


Overnight, the Dow Jones Industrial Average closed up 72.09 points, or 0.31%.

The S&P 500 gained 3.29 points, or 0.13%.

In Europe, the Euro Stoxx 50 index finished up 13.96 points, or 0.39%. Meanwhile, the FTSE 100 climbed 0.12% and Germany’s DAX gained 64.93 points, or 0.50%.

In Asian markets, Japan’s Nikkei 225 index is up 211.61 points, or 0.95%. And China’s CSI 300 is up 1.31%.

In Australia, the S&P/ASX 200 is up 17.83 points, or 0.30%.

On the commodities markets, West Texas Intermediate crude oil is US$56.34 per barrel. Brent crude is US$62.22 per barrel.

Gold is trading for US$1,278.50 (AU$1,693.38) per troy ounce. Silver is US$16.94 (AU$22.44) per troy ounce.

One bitcoin is worth US$8,285.58.

The Aussie dollar is worth 75.50 US cents.

Next stop US$10,000…

I won’t spend much time on bitcoin today.

Only to mention that it’s — once again — trading at all-time highs.

At time of writing, one bitcoin is fetching US$8,285.58 (AU$10,938.52). And that’s after falling to US$5617.69 just nine days ago, on 12 November.

As a point of reference, this time last year you could have picked up a bitcoin for just US$736.72. Of course, at the time, very few analysts viewed that as a bargain. The mainstream was already warning that the digital asset was in a bubble.

Most financial analysts didn’t understand it. As such, they recommended everyone else should steer clear as well.

Our own crypto expert, Sam Volkering, knew better. In fact, he was confident enough to recommend bitcoin to his subscribers of Revolutionary Tech Investor. (This was before Sam launched two new services dedicated to crypto investing earlier this year.)

Here’s what he wrote in his Stock Alert on 23 November, 2016:

Before we get into your latest Stock Alert, I should point out that I’m not actually recommending a stock today. I’m still recommending an investment — of sorts — it’s just not a stock.

Confused? OK, let me get right to the point then. Your latest investment recommendation is to buy bitcoin.’

Below you can see the price action for bitcoin over the past calendar year.

chart image

Source: CoinDesk
Click to enlarge

On 23 November, bitcoin was trading at US$741.60. If you’d bought into it when Sam made his recommendation, you’d be sitting on a gain of 1,017.26%.

Following that recommendation, we discovered how much interest our readers have in cryptocurrencies. And, frankly, how little most of our readers knew about them. I’m not taking cheap shots here…I knew very little about them myself back then.

This unmet demand led Sam to launch Sam Volkering’s Secret Crypto Network — Port Phillip Publishing’s first service dedicated entirely to cryptocurrencies. As far as I’m aware, it was the first investment advisory in Australia to offer insight into the cryptocurrency market.

It’s perfect for readers who are interested in learning more about the rapidly growing world of cryptos. And it’s also great for readers who’ve already bought their first bitcoin and are looking to expand into other cryptocurrencies.

Like ether, for example. According to CoinDesk, the world’s second largest crypto just hit an 11-week high ‘on reports of a new regulated derivatives product built around the cryptocurrency’.

That’s one of the most important things you need to understand about cryptos. That they can gain — or lose — a lot of value based on how their technology is used in the wider market. Like regulated derivatives products.

And that’s why, whatever your level of experience, Secret Crypto Network is essential reading. And as an entry level service, it’s a true bargain to boot.

Get all the details here.

Publicly listed companies want in on ICOs

With the unrivalled success of bitcoin, it’s not surprising that the crypto market is booming.

Though admittedly, I am a bit surprised that there are now over 1,200 different cryptos in virtual circulation. With more launching in initial coin offerings (ICOs) almost every day. Including growing interest from publicly listed companies.

From Bitcoin News this morning:

Initial coin offerings (ICOs) are on fire and now also publicly listed companies are getting in on the new funding type action. Macau-based Dragon Corp plans a 500 million USD ICO for its floating casino. Germany’s Naga announced a decentralized blockchain trading platform. China’s NEO is being embraced at a time when the government isn’t exactly known for its love of ICOs.

Investors are clamoring for ever-more ways to participate in the innovative markets bitcoin has spawned.’

That last line rings familiar.

After Sam launched Secret Crypto Network, it was clear that some readers wanted more. They’d mastered the basics, bought and sold some bitcoin and ether and were looking to get in on the potential 10, 20, or even 50-fold gains delivered by the most successful ICOs.

Cryptos like steem, which rocketed 1,812% in only 10 days. Or radium, which gained an incredible 4,636% in two months.

Of course, not every ICO will deliver gains like these. Some will lose part — or all — of their value equally quickly.

As Sam explains to subscribers of his recently launched premium service, Crypto Tech Investor:

You’re dealing with the razor’s edge of the crypto market. These are the tiniest digital currencies on the planet. Potential 2,000% plus gains could and do unfold lightning-fast. But price action can head downward at the same pace. It’s important you understand that.

Though there are no guarantees, Sam’s unmatched knowledge of the crypto market goes a long way to helping you avoid what he calls ‘crapcoins’.

Before making any recommendations in this market, he analyses and researches the upcoming digital coins from every angle. And he personally grills the developers until he’s satisfied they have a legitimate and potentially explosive new crypto to bring to the market.

Now Sam’s just unveiled three new cryptocurrencies to subscribers of Crypto Tech Investor. This includes one ICO that hasn’t hit the open market yet.

But it will very soon. Tomorrow, in fact, on 22 November.

To get into this ICO before its official launch — and for all the details on the other two cryptos topping Sam’s list — just go here.

100-to-1 in the Stock Market

I hope you signed up for our microcap training seminar, brought to you by Sam Volkering and Kris Sayce.

If so, I trust you’ve learned a thing or two about the tremendous potential gains and tremendous risk that go hand in hand when trading these tiny stocks.

By signing up for the training seminar, you’ve also placed yourself on the priority list for membership to Microcap Trader.

As you may know, subscriber numbers to Microcap Trader are strictly limited. That’s because the stocks recommended in this service are tiny. So tiny, that opening up the service to all our members could easily impact the recommended companies’ share prices.

Once the available places fill, we’ll close the doors on this service again. So keep an eye on your inbox tomorrow for your priority invitation to join our select group of microcap investors.

A reminder to our Alliance Members

Speaking of keeping an eye on your inbox, tomorrow at noon we’ll be sending out invites for the 2018 Port Phillip Publishing investment conference. These will only go to our Alliance Members.

Our 2016 conference in Port Douglas was our biggest ever. Over 630 people attended the two-day event.

While it was a great success, publisher Kris Sayce has decided to make the 2018 conference a little cosier. For that reason, he’s booked a 400-seat venue. Based on the numbers from last year, we expect all those tickets to be claimed by Alliance Members…and fast.

I can’t offer you a lot more detail today. So be sure to check your mail at noon tomorrow (note that some mails may be delayed for 10–15 minutes).

Your Alliance-only invite will give you all the details on timing, venue and the confirmed keynote speakers.