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Call it what it is... A speculative startup.
Yes. Bitcoin is the most popular right now, but may not be the crypto currency of choice in the future. Good thing they can all be converted to others as easily as paper money can, so it doesnt really impact anything.
Heres what really happened in the interview...
John graciously gave his time to two smug windbags who have no idea how to stay on topic or let their guest actually answer the questions they are asking.
Through the course of the interview, instead of focusing on the subject, they continually tried to make themselves look smart by interrupted their guest with completely unrelated topics. Understandably, frustrated, John then responded by giving smart-ass answers, such as "I never go to the office". Most interviewees would have walked out about 2 minutes in, but John was gracious enough to see it through.
Not all products are home runs and not all are worth pursuing. I never saw D-Vasive as a potential revenue stream and doubt I ever will. Thats ok though. Good CEO's know when to refocus, and not stay with something that has no future just because they are emotionally invested in it.
Its up over 300% from a year ago and the rise started at the exact moment John McAfee got involved. So yea... id say it took off...
You are correct that MGT took off on the news John McAfee would be involved. It also became the heaviest volume stock on the market for 2 days at its peak. Now that was JUST on the news he was involved, which means we got a sneak peak of the power his name can have on the share price. Keep in ming it had LESS going for it back then than it does right now, minus the delisting. The next step is establishing the potential of the underlying business. Of course that it is the hardest part, but it would not take much for that to take hold, and return the SP to growth territory.
As for the delisting, you have to remember that the current management took over the shell of another company when it became the MGT it is today. The delisting was only a side effect of that process. Delisting doesnt happen overnight, and the current management clearly wasn't prepare to stop it from happening, regardless of the end result. The upshot was MGT is trading at a deep discount to where it would be if the delisting never occurred. Something they will have to remedy, but something that is certainly possible to remedy as well.
Mistakes ALWAYS happen in startups. The delisting was a mistake, but not the end of the world. Id much rather see a delisting than see them ship products that explode in people's hands, or get hit with a regulatory cease and desist. THOSE are the things that sink startups. Delisting just trips them up.
MGT could take off any day... any minute, and once it does, it is off to the races. Its one good PR away from being the flavor of the day... or it could trade sideways for months, or dissolve if deals fall apart. Regarless, until it makes a move, the haters will call it a scam, and the investors will impatiently wait for validation. My money is in, and I think this could be a huge gainer. In fact, Im adding to my position on any dip. But that's me. Do your own due diligence, and evaluate your own intestinal fortitude. GLTA!
Startups are scary and risky. Its inherent in them being startups. Its also why their price is so low. The moment they cease being scary, its too late... you will have missed your chance at the real money. Sure, you can get in after the pop, but you will forever have the regret if "I could have...". Ill admit it.. I owned Apple at $13, and thought I was so smart when I sold it at $24. Had I kept it, I would be typing this from a yacht in the caribbean.
MGT is right where a startup should be. Ive been investing in startups for over 2 decades now. Some make it, some don't, and a few are scams. If your investing in startups you need to know what to look for and the signs that its time to cut and run.
Ive looked about as deeply into MGT as anyone could, and I can tell you they are the real deal. They have more potential catalysts (3) than most do, and there is plenty of evidence of their legitimacy. The executive pay is structured right, and for the long haul. Their base of operations is verifiable, as is their bitcoin revenue. (most don't have ANY revenue for several years after startup).
I understand the skeptics. no one wants to be "had", so we are geared as humans to avoid loss more than to chase after gains. Its a flaw in our chemistry, and one that prevents many from being successful in this space.
They are. We are expecting them to lay out the roadmap for ClearSkies within days now. We are also expecting an update to the uplisting very soon. Hopefully it will be very promising news, but if not, this is still a quality bitcoin miner, so while they develop and acquire new products, they at least can cover their ongoing operating expenses.
You certainly are entitled to your opinion. However, the process is already well underway to move off of OTC pink, and they are neither selling a porn sharing app or a free chat app. The monetized potions of the cybersecurity business are ClearSkies, which is being developed, and Sentinel to start with. There is no way of knowing how successful Sentinel will be, but we do know that the world is hyper-focused on preventing hacks, so Sentinel may have a very strong market potential.
Not to mention, the bitcoin mining operations, which were started at the perfect time - right before crypto currency really starts to get a foothold in legitimate transactions.
As for Intel, no one knows how that story will play out. It could end up being nothing, or it could end up being one of those surprise moments, where shareholders get an epic payout. What we DO know for sure is Intel would like John McAfee to go away. They have invested tremendous capital into the McAfee name, and neglected to get him to sign a non-compete when they aquired the trademark. So the possibility of them paying for him to exit their space is very significant and very real.
You can choose your catalyst, but I've been investing in startups for a long time, and cant remember one with so many potential positives this early in the game.
Until we know more about the product side - details about products, sales strategy, ect, this will trade as a bitcoin miner. Eijah said the 'roadmap' will be discussed in the next few days. This is a good sign but Ill withhold judgment until I hear what they have to say. In the meantime, its an easy scalp on bitcoin fluctuations, a spec on large gains on cybersecurity products, or a spec on a possible Intel settlement or buyout.
The average yearly temperature there is 40 degrees. Therefore, they do not need the high powered, more expensive cooling systems that would be used in warmer climates. This, (along with incredibly cheap local power) is precisely why it is an ideal location for bitcoin mining.
They are really mining bitcoins, and are really booking the proceeds as an income stream that is large enough to cover ongoing day to day operating costs. This is a very good thing as it is an asset that can be borrowed against, and can be expanded upon for future growth.
Right now, that is the case. Hopefully John McAfee is preparing to fire up the new studio, and jump on the "anti hacking" comments Trump just made, and get the sentinel name out there.
You are 100% correct. Changing auditors is non-news. These firms are highly regulated and when they have problems, they are held accountable and fix them lets they get pushed out of business. the fact that MGT is actively shopping around vendor contracts to secure better pricing is not only a good thing, but what we as investors should expect. It is a sign they are actively managing expenses.
The unfortunate thing about small startups, is there is so little out there for investors to hook into, even the non-events seem like news. It turns into a conspiracy theory effect. Look hard enough and you will make the data match your thesis rather than letting the data form your thesis. When bigger names switch vendors, its public info, but no one even speaks of it. One day, this kind of thing will also mean nothing for MGT, and I look forward to that day.
Bottom line, this still trades 90% on the price of bitcoin, and 10% on the products. Once they get a good footing, that split will shift dramatically.
Price movement is 100% bitcoin related. It will remain that way until MGT establishes itself as a cybersecurity business with sales and product release info.
If the Chinese investigation leads to a ban, it will push bitcoin down for a while, as the market looks to see if other countries will do the same. If it doesnt, it will validate the currency, leading to a sharp gain.
So the question is what will China do? The answer is not related to the fundamentals of bitcoin, although they will say it will. It is related to the value of their currency.
All politics aside, China is not going to want their currency to go too high. The news of bitcooin investigation has pushed the Yuan higher since. If this continues, China is likely to end the investigation with no ban.
Although this could be very bullish for MGT, the uncertainty will weigh on it short term. Best thing for the company to do is to get their product pipeline up, running, and in the news, so it doesnt trade as just a bitcoin miner. The timing is perfect with all the "anti hacking" headlines.
So he needs to fly out to Washington just to stand next to machines for a pic to satisfy your doubts? Do you not believe an oil drilling company actually has wells unless the CEO takes a picture standing next to each of them? Or do you need to see a pic of each McDonalds that opens every week to trust that they are out there? The only proof I need is that they are booking the income from their newly mined coins.
The news will come when its time. Im as anxious to see it come out as anyone, because I know it will make the share price take off, but releasing it before its time wouldn't help anyone. Patience will be rewarded.
MGT trades as a bitcoin miner because... well... its a bitcoin miner! If your relying on any company's 8K or 10Q to validate or invalidate your investment decisions, your barking up the wrong tree. These filings tell you virtually nothing about actual operations. They are broad based governance documents. If you don't believe they they are mining bit coins, then you shouldn't invest until you have confirmation of volume and margin. Of course by the time you do, the price of the stock will reflect that, and you will miss out on the opportunity to buy at these levels, but hey... its your money.
With Trump announcing new investment in "anti hacking", and John McAfee getting lots of exposure, very good things may be ahead for MGT. I know they've brought on some very seasoned sales staff, and I trust their ability to capitalize on this opportunity while the whole country is talking about the dangers of hacking vulnerability.
What does this post have to do with MGT?
What does this post have to do with MGT?
Sentinel sales numbers are scheduled to be released in the next quarterly results release. you won't hear anything untl then, which is pretty standard procedure with almost all companies.
This is a board about MGT, not Everykey, which is a crowd funded project for which he has served as a spokesman prior to his involvement in MGT. Everykey is not owned, licensed, or sold by MGT. Crowd funded projects are literally the riskiest in existence, because it is well known that they may not have the funding needed to overcome the many challenges inherent in developing, designing or producing the product. Since it is not affiliated with MGT in the slightest, if it fails, gets sued, or has its assets seized, it will have no impact on MGT at all.
Volume is up as of this morning. Was up yesterday as well. Will continue to rise as bitcoin gets more recognized as a legitimate form or currency, and people look to invest in it.
Bitcoin is starting to trade like gold does. Some buy it directly. Some will buy ETF's related to it, and some will buy miners that produce more of it. Miners are preferred by some investors because its a play on the commodity with the security of having a company with assets behind it. As people choose which miner to put their money in, MGT will be seen as the most secure, and safest. Whatever negative things people think of John McAfee, most people know him only as the name who keeps viruses off their computers. No one will care about the garbage stories about him - whether they are true or not. That name recognition will be worth unbelievable amounts as we go forward.
The messenger part was released last week under the name "enigma". It will be packaged together with other elements to create a comprehensive secure platform for businesses called Clearskies. Whether it will make the could obsolete remains to be seen. The fact that it is likely to make my mortgage payments obsolete is what I care about most.
Honestly, after what we learned over the weekend from the screenshots that got out, I'm no longer biting my fingernails over the uplisting. Im hoping it will be soon, but now, Im more excited to see them officially show us more about clearkies. They projected uplifting would be done by the end of 2016, but they really have no control over the exchanges internal processes, so that was a guess at best, and I can't hold it against MGT.
To be totally honest, the PR I would personally love to see the most is one that talks about ramping up bitcoin mining. With marijuanna legalization, and global currencies increasingly unstable, I think we may have seen the lowest bitcoin will ever go. MGT could turn itself into a pure mining play at this point, and I would be just as bluish (if not more) than I am now.
Main catalyst right now is bitcoin. A few screenshots of their website that haven't been published yet were found. One is a page that describes the deal with Bitmain, that describes what could end up being a massive mining pool. I don't know enough to say it will be the biggest int he world, but will be protected by MGT's products.
The other page shows the suite of Clearskies enterprise products. The page looks very good, very professional, and MUCH more than a beefed up version of Demonsaw. It seems that whatever technology is behind demonsaw is just a tip of the iceberg of whats to come. Keep in mind, all we know is what a user caught by taking a pic with their phone of the screen that was up for less than 15 minutes before they hid it, so nothing is official and the market won't react until it is official. But what CAN be read into it, is MGT is very much a legitimate company, with very legitimate products coming out, and a firm foothold in the booming bitcoin world.
Im not pumping when I say, this truly seems to be the last chance to get in at these low levels. If they deliver on 1/3 of what got out, this stock is getting set to roar.
Could bitcoin be replacing gold as the go-to hedge against uncertainty?
For centuries, the appeal of gold was twofold. One was of course for its beauty and relative rarity. But more significantly, for its universal value. Around the world, the value of gold makes it the ultimate alternative currency. Gold cannot be counterfeited, its value can't be manipulated, and there is a limited amount of it in the world. It cannot be controlled by political forces other than to horde it to decrease its availability, and mining it has always been spotty and inconsistent, never pulling more out of the ground than to replace what is lost or destroyed around the world.
The major drawback of the shiny metal though, is it isn't easily used for day to day transactions. Its heavy and impractical for transport, and can become an easy target of theft. That was... until bitcoin came along. Cryptocurrency is the ultimate alternative to government issued currency and gold alike. Bitcoin being the main form, Cryptocurrency comes with many of the advantages of gold, only without many of the downfalls. With it now being seen as legitimate and safe, it has become an attractive alternative to gold as a hedge on uncertainty. And with the sharp rise in legalized marijuana in the US and around the world, a booming new industry that is both locked out of the banking world, and in need of a safe way to transact, bitcoin is seeing all time "highs".
As bitcoin continues to rise, a new industry of miners will take over the coveted spot that gold miners currently have as a play on the currency without having to experience the volatility of minute to minute price changes. MGT has positioned itself brilliantly well to be a major player in this space. They are not only a bitcoin miner, but cybersecurity is in their DNA. The one thing that scares most of the doubters away from bitcoin is the perceived lack of security surrounding it. MGT is in the ultimate position to overcome this, and may very well become the ultimate go-to supplier of the currency of tomorrow.
8k's show changes in the governance of a company, and show next to nothing about the business itself. Financials are backward looking documents that tell only of what has already happening. Neither tell you a think about what is happening in a company currently.
So when Apple announces the release of a new product and no one heard about it before the reveal, it is because you can't see it in either the 8k or the financials. The product is not a lie by any definition. The same logic applies to MGT and John McAfee. You won't know what they are doing until they report about it after it is done. That is how all companies operate.
The John McAfee name has intrinsic value. Intel knows this, which is why THEY initiated an action to get him to stop proceedings to change MTG to his name. This is a clear win/win. If he succeeds, MGT benefits significantly from the fact that his name is easily recognizable and respected. If Intel succeeds, it will be because they acquired the company with terms rich enough to get him to agree to sign a non-compete, in which case MGT shareholders benefit.
Intel has no legal means to win this. There is an enormous amount of case law prescident that shows no person has ever been stopped from using their personal name, even if they've sold a trademark that contains their personal name. No court has ever ruled in favor of the plaintiff in tho type of case, which in this case, would be Intel.
Announcement of a name change should trigger a massive spike in the share price.
You are correct that the company as an entity has been around for a long time. Then McAfee and his team came in, took over, and have changed everything. Not unlike the first Dominos Pizza. It was an established pizza shop called "Dominics" that the Mongahan brothers bought, renamed and changed significantly. They couldnt afford a new sign so with a little creativity and paint, changed it "ic" into an "o". There is no need to go through all of the trouble of creating a company from nothing when the perfectly suitable shell of one is available to take and use. its good business!
The business world is full of examples just like MGT (and Dominos). The bones of a business are bought or taken over, transformed, and turned into something completely different. That is where MGT is in their life cycle right now. So yes, just like the Mongahan brothers were a "startup" running from an existing business, MGT is as well!
Thanks for pointing this fact out! I forgot to list it in my last post.
The company has 2 main segments. Security products and bitcoin mining. The bitcoin piece is a bet that the problems with the current currency markets and their relative inability to remain secure will push more and more people towards using crypto currency like bitcoin. The growing marijuana business for example. In the US, more and more states are decriminalizing or legalizing weed sales. Since banks will not do business with them, and physical cash is very dangerous in the amounts they deal in, bitcoin is a great, safe alternative. And with unstable governments fining counterfeiters and the like (look t India for a recent example).
The security products segment is in its infancy stage, so no one expects it to pull in much in revenue until it is more established. Not unlike any startup, this segment takes time.
MGT's diversification into bitcoin mining seems odd on the surface, until you step back and look at the bigger picture. If bitcoin continues to rise in value and popularity, people will wonder why they didnt get in earlier, and will think themselves foolish for questioning such a move.
Your question is a good one, and I hope my answer helped.
Merry Christmas!
Why on earth would you say MGT shareholders will not benefit from bitcoin? We will benefit just as much as we will benefit from any other business operation. Just like any public business anywhere. The rising bitcoin price is positive for MGT just as rising gold prices are good for gold miner stocks. Whenever an asset or commodity a company deals in increases in value, of course the company itself will benefit, and naturally so do the shareholders when the share price rises. I can definitely see the day when we track bit coin prices because our MGT shares will make a corresponding move.
As for Johns compensation package, it is the perfect setup for shareholders! Almost all his pay is in stock, so its in his personal best interest to see the price rise as high as possible. Over 80% of most executive's compensation is stock based. When the company does well, we do well, and by default, the shareholders do well. Its a great partnership. If Johns compensation was mostly salary, Id be concerned. Since his options vest over 5 years, it means his greatest incentives come with sustained, long term growth, and are nothing a "pump and dump" would help. In fact, a "pump and dump" would hurt him. We call this the "golden handcuffs", because it makes it hard for executives to leave a company, knowing what they would be leaving on the table if they did. I know this effect first hand, and it is very effective at preventing good executives from company hopping.
Your post is a great example of how this is a real company set up for the long haul. If it were a "pump and dump" or a scam, John's pay would be structured MUCH differently.
This is a very bullish post. The most bullish I have ever seen you publish! Thanks and Merry Christmas!
I couldn't care less whether you believe me or not. But to satisfy your curiosity, CEOs work days don't ever really begin or end. Were never off. So to prevent burnout, most of us allow ourselves break periods throughout the day or evening where we force ourselves to do anything BUT think about work. At least thats what I do, and what many of my colleagues do. For me, my investments are my indulgence. I allow myself to focus on it from time to time in between meetings, and do the work that doesn't require conversations with others after hours.
When I saw the lack of good security products useable in healthcare, I started looking for a company like MGT to invest in. Not just to fill the healthcare need, but in general. I like the potential for growth and the current low price. I see lots of potential upside, which is why I'm putting my money into it. I don't even know if they will focus on healthcare, but it doesnt matter. If they do what I think they can, the market will find them.
You are correct. I am not qualified as a Chief information Security Officer. As the CEO, I do not need not have the inclination to understand everything behind the scenes. What I do is instruct my CIO (in my hospital, we leave out the "I" in the title), to find solutions and present an executive summary. My IT staff gets how it technically works, my clinical staff gets how it practically works and I get how it fits into my larger strategic plan to market the hospital and make our customers feel safe and secure. They could talk till they're blue in the face about how great whatsapp or Facebook messenger would be, and knowing how it would be perceived, I would still say no. I would tell them to find me a product that does the same or better but doesnt feel like were running all the patients information through social media. You see, many companies market only to the CIO (or CISO), and never get bought because it is the CEO who signs the final contract.
Heres a real life example... Last month we were in the market for a replacement MRI for an outpatient clinic we operate. Shimanzu makes a fine MRI. They also recently halted sales outside Japan, so I could get one for 1/3 of what a GE or Seimens model would cost. Id still be able to get parts and service so there would be no problems there. If I were ordering one for the inpatient imaging dept, a Shimanzu would do. But since this is outpatient, I recognized that patients feel more comfortable with seeing a logo on the machine they recognize. Outpatient MRI's are a service line people choose, inpatient is not. So I would possibly loose market share just based on who made the machine. I could try to convince my patients its just as good, but most wouldn't care. They would just go elsewhere. Like I said, in healthcare, perception is everything.
And I know full well whats involved in new technologies. I also know loosing 4 or 5 3rd party hospital stays can be more of a financial loss than the cost of switching technologies. My IT department would disagree because its a ton of work for them, but thats why they don't get to make the final decision. Its not my job to make their jobs easier, its my job to make sure they get to keep their jobs by keeping the hospital solvent.
Seems like I could show you a diamond, but if it once belonged to John McAfee you would say its "just a worthless piece of carbon".
Your assuming that their products are targeted towards the masses. There are tremendous market opportunities that most people will never know about. Take the hospital management industry for example. An industry I happen to know very well... Cyber security has moved beyond being an unlikely threat to a real life crisis that hospitals will pay almost anything to protect. Ransom attacks are very real and happen every day, but hospitals don't talk about them because of the damage that would come if people realized their private health information was at such risk. Hospitals need to make it possible for employees to communicate in real time without making calls, which patients see as an intrusion on privacy. Texting is the obvious answer which employees tend to do whether they have permission or not. Its not secure, even if we make them use Airwatch (which we do, and which is expensive). There is no way I could tell a patient that their doctors were communicating about their case using WhatsApp or Facebook Messenger. With the Yahoo breach and many others, patients would flip a lid over the perception of security going through mainstream "social media". Even if I explained all the protections those apps haven it wouldn't matter... Perception is everything in healthcare. Telling them we use a specialty super secure closed system created by John McAfees company would make them feel comfortable and protected. Not one of my patients will care a lick about John's personal life or your personal beef with him. They just want to FEEL protected. Thats all that maters when the enterprise version of all these products hit the marketplace.
Its a lot better than a big drop so Ill take it! It may be a sign that it has bottomed out, and will pause here until it moves higher on a good press release.
I admit that the bitcoin mining comes off as odd at first, but it does provide a steady source of income, and tangible assets, which are very important in startups, so well just call it "diversification".
Do yourself a favor and read the filing for yourself. Their entire case is trying to assert that he gave up the right to use his name on cyber security products when he sold the trademark to the company. It would be a case if he had signed a non-compete, which he did not.
I get their frustration because they assumed buying the trademark meant he would not try to compete using his name, and probably figured he would retire with the pike of cash he got from it. And he may have said he would, and had every intention of retiring at the time. But they failed to get the non-compete in writing, and circumstances changed in his life, and here we are. They didnt dot their i-s and cross their t-s, and put themselves in a tough legal spot.