Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 15 Oct, 24 | HIVE | Speculative Buy | CAD 4.34 | CAD 4.8 | CAD 5.15 | 1 day | 18.7% |
Data Powered by EOD Historical Data (“EODHD”).
HIVE Digital Technologies Ltd. engages in the mining and sale of digital currencies in Canada, Sweden, and Iceland. The company operates data centers for computing and mining cryptocurrencies, including Bitcoin and other coins. It also provides infrastructure solutions, as well as computational capacity to distributed networks in the blockchain industry. The company was formerly known as HIVE Blockchain Technologies Ltd. and changed its name to HIVE Digital Technologies Ltd. in July 2023. HIVE Digital Technologies Ltd. was incorporated in 1987 and is headquartered in Vancouver, Canada.
Enhanced Profitability: Net Margin of 10.1% in Q1 FY25 vs Industry Median of 1.9%
Improved Liquidity: Current Ratio of 7.35x in Q1 FY25 vs 3.12x in Q1 FY24
Operating Inefficiency: Asset Turnover of 0.10x in Q1 FY25 vs Industry Median of 0.13x
Balance Sheet Risk: Debt-Equity of 0.10x in Q1 FY25 vs Industry Median of 0.03x
Market Volatility, Technological Dependence, Cybersecurity Threats, Energy Costs, Asset Liquidity, Foreign Exchange Risks, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 4.34 | 3.7 | 4.8 | 5.15 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (On the Daily Chart)
On the daily chart, HIVE stock prices are sustaining above the rising trendline support level and continuously taking support from the trendline. The recent upside movement in the stock is backed by increasing volumes, further supporting a positive bias. The next resistance level is plotted around CAD 4.92, and the stock may test that level in the short term (2-4 weeks).
Technical Analysis (On the Daily Chart)
On the daily chart, the momentum oscillator RSI (14-Period) is showing a reading of ~53.23 levels, indicating positive momentum. Moreover, the weekly volumes also seem supportive of the upward movement. Further, the stock is trading above the 50-period SMA, which may act as a support level.
As per the above-mentioned price action and technical analysis, HIVE Blockchain Technologies Ltd. is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock at the closing price of CAD 4.34 as on 15 October 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| HIVE HIVE Blockchain Technologies Ltd |
-0.05 1.11% | 4.45 | - | 84.75 | 6.16 | 2.00 | 4.34 | 13.25 |
| NDA Neptune Digital Assets Corp |
0.14 14.00% | 1.14 | - | 4.39 | 62.76 | 2.19 | 54.69 | -20.4085 |
| DMGI Dmg Blockchain Solutions Inc |
0.02 5.33% | 0.40 | - | 5.29 | 2.63 | 0.96 | 3.01 | 5.42 |
| DGHI Digihost Technology Inc |
-0.07 2.69% | 2.53 | - | 1.76 | 2.21 | 2.17 | 2.39 | 5.11 |
| BTCW Bitcoin Well Inc |
-0.0025 1.49% | 0.17 | - | - | 0.51 | 2.18 | 0.68 | -3.911 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 23, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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