Disclaimer: VFC has no affiliation with any of the mentioned companies nor with any third parties associated with any of the mentioned companies. VFC has received no compensation for this blog post, although there may be an unrelated advertisement or two at various locations on this blog. VFC does not offer advice or investment services and nothing you read here should be construed as such. VFC is just a guy with an opinion and access to a computer and a keyboard; bringing discussions and ideas to the table. #AhYeah.
Asian Broadband (AABB) is a stock to watch as we close out the year, and definitely will be one to watch moving on into the new year and beyond. Taking advantage of the crypto boom, Asia Broadband has developed its own gold-backed cryptocurrency, the AABBG token. Revenues are already beginning to roll in as the company sold more than $1.1 million in the four week period ending on November 15th. In explaining the goal of the company and its unique gold-backed crypto token, let's take the words from a recent AABB press release:
"AABB’s primary goal for the AABBG token is to become a worldwide standard of exchange that is secured and trusted with gold backing, by progressively expanding token circulation to the primary sales markets of North America and Europe and expand globally to other predominant and high growth market areas. AABB embraces a pioneering philosophy with its truly unique Mine-to-Token vertical integration operational approach that strives toward complete independence from FIAT currency."
In addition to the token and the AABB wallet, which already available and growing as a downloadable app (also see https://aabbgoldtoken.com/), Asia Broadband is set to launch a new crypto exchange to add to its wallet on 28 December. According to a recent PR the launch will be staged and the exchange is currently in the testing phase with 150 trading pairs (a trading pair is a function whereby you have two different currencies that can be traded between one another) with over 50 more planned for the coming weeks. That's a pretty significant number compared to other exchanges out there. AABB is looking to set the standard, which also bodes well for sales of the AABBG token.
Currently, shares of AABB are trading for under twenty cents per share. There are a lot of shares out there, however, so the market cap is already sitting at about $430 million. The stock is also still trading on the pink sheets and pinkie stocks always come with a larger amount of inherent risk because the financials are not usually up to date enough to trade on more legitimate exchanges. Additionally, this stock has already banked very serious gains over the past year, with the 52 week low being below a penny with highs of over 64 cents reached after the wallet launch earlier in the year.
Given the facts stated in the paragraph above, many will ask, "Is the risk worth the potential rewards?"
VFC's take is yes. There may be some great short term and long term gains ahead for this stock and company, and any dips back towards the nine cent mark where shares were trading just a month or two ago would definitely be buying opportunities, in my opinion. I'll be adding additional speculative shares at these levels, too, although I'll be averaging up.
The crypto market has boomed. The run in cryptos has already created millionaires and even billionaires and much sentiment out there feels like the most expansive gains have already been had in the market. Others believe the boom will continue as the world looks more towards cryptocurrency than traditional. Regardless of either scenario, the cryptocurrency market can be measured in the trillions. Trillions, not millions or billions. Trillions. And that means there is a lot of money being made and a lot of potential money to be made even for smaller companies looking to break in.
With a gold backed crypto token, which will add stability to the value of its cryptocurrency, Asia Broadband has positioned itself for success in the crypto marketplace and we may still be in on the ground floor early stages of a future big player.
We can say it pretty much started with the launch of the AABB wallet, but the launch of the exchange later this month could really put the company on the map. It is my opinion that we should temper initial expectations for share price. This is a planned event so large positions have already been taken on the long and short side of the stock. Immediate spikes into the multi-dollar range may be too much to ask for in my opinion, although definitely possible over the long term, but that could change should a large influx of demand for the wallet, exchange and token materialize.
Another factor that could lead to a rapidly rising share price would be a marketing campaign. I'm not too certain that the company would market the exchange on the initial launch, maybe give it a little bit of time to work out the kinks, but early next year would be a good time to do if you're gonna do it. That may offer a little bit of reasoning behind the initial launch taking place between Christmas and New Year when most people are on vacation or drunk on Egg Nog or Goose and mixers.
I believe a marketing campaign will come at some point.
A wild card is that in this day and age, the right tweet by the right person could bring instant attention and lead to a sudden surge. I always like to keep a nice core of "just in case" shares handy just in case that happens, while using a handful of trading shares to play the peaks and valleys of short and long term volatility.
Back to the token, the company keeps roughly thirty million dollars worth of gold in reserves, according to information contained in recent press releases, with the capacity to grow that number through credit, cash purchase and mining. On the mining front, Asia Broadband announced a definitive agreement to purchase a gold mine in Mexico. Such moves put the validity behind the gold backing of its crypto token. It's also likely that we will see additional definitive agreements in the future, if the company holds to statements made over the past year in press releases.
On the growth and expansion front, Asia Broadband also announced a move into the Central and South American market, creating a hub in El Salvador where retailers have already been approached in regards to accepting the AABBG token as a payment option. Such an approach to global retailing is already building and is very likely to continue rapidly growing. Again, Asia Broadband is positioning itself in the middle of the growth field.
Something else that may be coming down the line is a name change. The name Asia Broadband does not inspire thought about crytpocurrency or a crypto exchange, so maybe a name change to go along with the product and services is forthcoming. In my opinion, that would help support a marketing campaign.
Lastly - I've already babbled enough - look for financials to become current and an eventual move to a larger and more legitimate exchange such as the NASDAQ at some point. By then shares would be trading significantly higher, but that will likely be a goal of the company.
It all sounds pretty good, yeah? But don't forget the risks.
It's still a pink sheet stock, there are still a couple of billion shares out there and there are likely players in the bigger markets that do not want this company or its share price to succeed. Maybe the exchange will fail upon launch or maybe no one will use it. Maybe the governments around the world start to regulate the shit out of crypto making it hard for the companies or investors to succeed and/or bank profits. Those factors translate into the possibilities that any money you have on AABB could be lost. Keep that in mind not just when investing in this stock, but in the stock market as a whole.
That said, I like the prospects here and I will still be adding.
Disclosure: VFC is long AABB.