SOS Limited (SOS), a tech company focused on emergency services, has expanded its strategy to focus on cryptocurrency mining, the stock is on both the surge in short rates and fraud allegations On Many Investors’ Radar Why is SOS Stock rising and should you buy it now?
SOS stocks have piqued the interest of investors seeking exposure to Bitcoin mining stocks or alternatives to Riot Blockchain (RIOT), Marathon Digital (MARA), Hut 8 Mining (HUTMF), and Bitfarms (BFARF)
On Apr 6, SOS stock fell 6 percent to $ 450, but then jumped more than 30 percent to $ 5 in longer hours90 Many other crypto mining stocks fell that day, with RIOT, MARA and HUTMF falling 5.73 and 74 percent
The surge in SOS stock may be due to a Reddit campaign trying to convert it into the next GameStop (GME) Reddit investors have noticed that short interest in the stock has increased, and they plan to run a short squeeze course in the next few days to get the stock above $ 15, and their GameStop squeeze got the stock up more than by more than $ 15 2000 percent and brought enormous profits for many private investors
In February 2021, Hindenburg Research released a report alleging that SOS Limited was a scam indicating that the company was using a fake company address. Hindenburg announced a short position in SOS stock
The fraud allegations sparked a rush to sell SOS shares, resulting in a slump.Hindenburg is the same investor who committed alleged fraud in Tesla competitor Nikola, leading its founder and chairman Trevor Milton to resign and GM to expand prompted his partnership with the company
We’re Short $ SOS, which we think is an obvious China-based shell game resurrecting the corpse of a former China-based company that previously imploded 90% of its highs, we believe SOS has a value of 0 USD is and carries significant regulatory risk ImageTwittercom / BKyCHINHIE
We discovered that $ SOS ‘main office and headquarters do not appear to exist We visited the address listed on the company’s SEC filings and determined that it was a hotel, a woman who worked for the hotel , told us that there are “no companies” here ImageTwittercom / 64cBK1PcOU
Hindenburg has also alleged that SPAC King Chamath Palihapitiya misled investors into the Clover Health (CLOV) deal, alleging that Clover never incorporated its insider dealing and regulatory investigations into its practices on The CLOV -Share fell on allegations
SOS Limited has denied Hindenburg’s fraud claims, but that didn’t help its stock – it’s more than 70 percent below its most recent high.In addition, it’s overvalued by a price-to-book multiple of 155 that’s higher than Riot’s 117 and marathons 138
Before it came to crypto mining, China-based SOS was in the online lending business and had a similar model to LendingClub, and the company’s data analytics services are currently the largest contributor to revenue
At $ 450, SOS stock costs less than Riot at $ 54 and Marathon at $ 52, however, Riot and Marathon have more advanced crypto mining operations than SOS, and SOS may have to rely on used machinery first >
While SOS Limited should benefit from soaring crypto prices, it doesn’t seem like a good investment right now.Its old mining machines will make it difficult to compete with the likes of Riot and Marathon, and the stock appears to be overvalued, beyond which the allegations of fraud are von Hindenburg and could lead to class action lawsuits that present a major investment risk
SOS stock may seem tempting to bargain hunters, but the company continued to record losses, even though cash needs have increased with the expansion into bitcoin mining, and recently raised $ 125 million through sales of new stocks, bringing the Risk of continued stock dilution appears high. Therefore, it is best to avoid SOS stocks now
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World News – CA – The SOS Stock Short Squeeze: is it the next GameStop?