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Negative News Surrounding Bitcoin Hurts Startups Involved in the Digital Currency

Friday, 07 March 2014 09:40 AM

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Videos of reporters chasing the so-called inventor of Bitcoin, the bankruptcy of Mt. Gox Bitcoin exchange and wild tales surrounding the unregulated digital currency are taking a toll on the share values of companies dealing in this mysterious arena.

On Mar 6, Bitcoin Shop Inc. (OTCQB: BTCS) stock volume continued to soar, with 367,421 shares changing hands, but with its share value continuing its downward spiral, losing 18.37% of its share value.

BTCS share price closed at 80 cents, down 18 cents from its closing price of 98 cents the previous day.

Surge initially based on Hype

Conversely, on Feb. 10, Bitcoin shop’s share price was more than $4 as a result of the excitement and curiosity swirling around anything to do with the mysterious new Internet currency Bitcoin. But part of the boost was a direct result of the Sliver-Spring, Md.-based company launching a new ecommerce website (www.bitcoinshop.us) where consumers can purchase products using virtual currency such as Bitcoin, by searching through selection of over 400 categories and over 140,000 items.

But it appears the hype surrounding the new site has worn off fast among shareholders who might be wondering just how all this will translate into profits, rather than losses. This is especially true with all of the negative news surrounding the Bitcoin currency lately, including the Mt. Gox Bitcoin exchange bankruptcy filing.

A Murky and Unregulated Currency

Bitcoin is a digital or virtual currency that uses peer-to-peer technology to facilitate instant payments. Bitcoin is categorized as a cryptocurrency. That’s because it uses cryptography for security, making it difficult to counterfeit. Bitcoin issuance and transactions are carried out collectively by the network, with no central authority, and allow users to make secure, verified transfers.

Although true believers in the digital currency minimize its risks, industry experts recommend using extreme caution when evaluating companies involved with it. Only time will tell which view is the most accurate.

Find out what could be the best investor’s move when it comes to BTCS by getting the complete report here, or by cutting and pasting the following link in your Web browser:

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Losses Decrease from $121 million to $27 million

Meanwhile, the Houston, TX-based drilling and marine services Hercules Offshore Inc.’s (NASDAQ: HERO) volume on Mar. 6 was also robust, with 2,171,317shares changing hands.

Full Year 2013 Results Disappointing

Volume has been gaining traction since Feb. 28 when Hercules Offshore released its financials for the 12-month period ended Dec. 31, 2013, At that time, Hercules reported a loss from continuing operations of $26.8 million, or $0.17 per diluted share, on revenue of $858.3 million, compared to a loss from continuing operations of $121.0 million, or $0.79 per diluted share, on revenue of $618.2 million for the twelve month period ended December 31, 2012.

While it can be said that Hercules Offshore is losing a lot less money these day, the fact is it is still bleeding red.

Analysts’ Consensus

Of the 9 analyst firms covering Hercules Offshore, 3 recommend a “strong buy,” 5 a “hold” and 1 a “sell.”

On Mar.6, the share price of HERO closed at $4.82, up 3 cents from previous day‘s share price of $4.79.

Find out what could be the best investor’s move when it comes to HERO by getting the complete report here, or by cutting and pasting the following link in your Web browser:

http://www.sixfigurestockpicks.com/

 

Oregon Plant Project Facing Difficulties

Finally, on Mar. 6, Ocean Power Technologies Inc. (NASDAQ:OPTT) had a brisk stock volume of 1,344,905 changing hands.

The wave-energy technology company based Pennington N.J. stock value has been trending downwards on some negative news surrounding its wave-energy power project in Oregon.

According to a Mar. 5 article in the NYSE Post, “the entire project seems like its falling apart.” It seems that the company has had a problem fulfilling its timetable and was about to surrender its preliminary license to pursue its 3rd and final phase of the project, according to the published report.

On Mar. 6, the share price of OPTT closed at $4.34, down 19 cents from previous day‘s share price of $4.53.

Find out what could be the best investor’s move when it comes to OPTT by getting the complete report here, or by cutting and pasting the following link in your Web browser:

http://www.sixfigurestockpicks.com/

 

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