Remark Holdings Hits Wall Street Radar With Record Short Interest. STVI Steady and Waiting

December 28, 2017 at 10:25 am Leave a comment

After the close of trading on Tuesday Remark Holdings (NASDAQ: MARK) was featured in an article in Barron’s Online’s Tech Trader Daily. The article highlighted the recent surge in Remark’s stock price and its emergence as a player in the Artificial Intelligence space, in particular with its new Fintech offerings and partnerships with some of the largest companies in China and Thailand.  This is one of the highest profile mentions of MARK to date, as the company has operated largely below Wall Street’s radar for most of its existence and has certainly never received a bullish mention as a Fintech Artificial Intelligence play by such a widely followed source as Barron’s .

Also after the close of trading yesterday, the NASDAQ short interest report indicated record short interest for MARK shares. For the first time in company history, there are over 1 million shares of MARK sold short (1,062,454). We believe this will prove to be very significant for two reasons –
1) it is very telling that the reported short interest has grown to such a level but we believe the bigger short picture is much more significant, as it is widely believed that there is a naked short interest that is much larger than what is reported by Nasdaq. Yesterday’s intraday short volume suggests more than half the volume traded yesterday involved a short sale, giving further evidence of the naked short selling that has been attempting to stall or at least slow MARK’s advance.

2) MARK management has shown a tendency to release its most significant bullish news a day or two after the NASDAQ releases the short interest data, almost as if they are attempting to punish the short sellers. With tomorrow being the last trading day of the year and MARK shares showing gains for the year that could put the company on many of the year end “top performing stocks of 2017” lists, we wonder if management might have a “grand finale” for what has been quite a fireworks show this year. Given the bullish article from Barron’s Online after yesterday’s close, the potential for bullish news to be announced tomorrow and the record number of shares that have been sold short; we would not be surprised to see shorts attempt to cover some of their exposure here and this would cause a short squeeze that will push MARK shares to new all time highs.

Snap Interactive (STVI)

We have been pleased to see Snap Interactive (STVI) continue to trade in that $6.50-$7.50 range as this allows Groove participants to establish a position while the stock is still valued at about half the multiple used to value its peers in the live video streaming / social media space and its blockchain incubator segment is not factored in at all. We believe that STVI is a below the radar blockchain/crypto play that has not been discovered by investors because it is traded on the OTCBB. As of earlier this month the company became fully compliant with the listed requirements for uplisting to the NASDAQ. We believe that will happen in the very near future and STVI’s valuation will increase markedly as the story becomes more widely known and more institutional investors have the ability to buy shares. In the meantime, the company continues to leverage its technology platform and legacy as a technology innovator to forge partnerships with best of breed blockchain start ups while we get to buy the stock at prices more in line with overlooked bulletin board stocks.

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Groove Update – MARK & STVI RAVE Restaurant Group Update

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