Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 2 Dec, 24 | BITF | Buy | CAD 3.1 | CAD 3.44 | CAD 3.6 | Same day | 16.1% |
Data Powered by EOD Historical Data (“EODHD”).
Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was formerly known as Bitfarms Technologies Ltd and changed its name to Bitfarms Ltd. in October 2018. The company was founded in 2017 and is based in Toronto, Canada.
Improving Cash Balance: Cash & Cash Equivalents of USD 72.91 in Q3 FY24 vs USD 46.78 mn in Q3 FY23
Rising Revenue: USD 44.85 mn in Q3 FY24 vs USD 34.60 mn in Q3 FY23
Lower Gross Margins: -26.3% in Q3 FY24 vs Industry Median of 32.74%
Negative Profitability: Net Margin of -81.7% in Q3 FY24
Bitfarms Ltd. faces risks related to Bitcoin price volatility, energy costs, regulatory changes, technological challenges, and competitive pressures, which could impact its profitability and long-term viability.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 3.1 | 2.65 | 3.44 | 3.6 |
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.
On the daily chart, BITF prices are trading above the falling trendline support zone. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~53.30 level. Moreover, the prices are trading above the trend-following indicator 21-period SMA, which may act as a support level. An important support level for the stock is placed at CAD 2.75, while the key resistance level is placed at CAD 3.44.
As per the above-mentioned technical indicators analysis, a ‘Speculative Buy’ rating has been given to Bitfarms Ltd (TSX: BITF) at the closing market price of CAD 3.10 as of November 29, 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) |
|---|---|---|---|---|---|---|---|---|
| BITF Bitfarms Ltd |
-0.01 0.41% | 2.43 | - | 84.03 | 8.35 | 2.19 | 4.98 | 28.38 |
| GLXY Galaxy Digital Holdings Ltd |
0.98 3.96% | 25.73 | 5.65 | 11.88 | 34.67 | 2.43 | 47.61 | 12.68 |
| HUT Hut 8 Mining Corp |
-0.21 0.61% | 34.00 | - | 48.54 | 14.77 | 2.77 | 27.37 | -88.5824 |
| CF Canaccord Genuity Group Inc |
0.11 1.09% | 10.20 | - | 11.48 | 0.63 | 1.23 | 0.32 | 2.02 |
| CXI Currency Exchange International Corp |
- -% | 23.00 | 15.64 | 8.23 | 1.86 | 1.37 | 0.03 | 0.11 |
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 November 29, 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.
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