Today we are talking about a popular penny stock, listed for less than 1 cent, OTC Ticker Symbol, HMBL. HUMBL leverages extraordinary new blockchain and Fintech technology, but can they break through the short seller blockade, and win?
I did spend hours poring through articles and HUMBL’s financials, to aid in a decision whether it made sense to buy shares of this stock to hold for the long-term, and that potential big run-up in price.
In the past I worked for years with Fortune 500 CFOs and financial consulting teams, to help companies determine where they were making money. Now I use this expertise to dig into HUMBL’s details.
But this is not financial advice, and for entertainment only.
In looking back at 72 tickers I day-traded in 2018, if I had done the type of analysis I’m sharing with you today, I would have held on to more of these stocks. 77% of them would mean big profits today. I spent just $37,000 on seven of these trades, that would now be worth $441,598! The purpose of this series is to help uncover these stock gems that have better odds of make big profits.
Hi investing friends, this is Lynn, and welcome back!
So Let’s go and review today’s hot stock! Remember that OTC stocks are highly volatile and risky. So today we are going to dive into the details of, to determine if this would be a good bet to build a portfolio. When I buy a stock, I at lease review the key factors you see here, and we will cover some of this today.
HUMBL is clearly unique, leveraging a competitive edge utilizing blockchain. Utilizing a Web 3, digital commerce platform, built to digitally connect consumers, freelancers and merchants. HUMBL provides simple tools and packaging for complex new blockchain technologies, similarly to the way previous cycles of e-commerce and cloud were packaged by companies like Facebook, Apple, Amazon and Netflix. HUMBL is built on a patent-pending decentralized technology stack that utilizes core and partner technologies, to provide faster connections. Its offerings include three interconnected product verticals
- HUMBL Pay – A mobile app enabling connections in the digital economy
- HUMBL Marketplace – A mobile marketplace that allows consumers and merchants to connect in the digital economy
- HUMBL Financial – Financial products and services, offering simplified investing on the blockchain
Let’s dive into the key details regarding these three offerings:
HUMBL Pay – HUMBL is developing a mobile application enabling customers to migrate to digital forms of payment, including services such like maps, ratings and reviews. The company plans to integrate the search, discovery, peer-to-peer cash and ticketing around the world, as these services migrate into digital and blockchain-based modalities.
And, how does HUMBL plan to profit from HUMBLE Pay? HUMBL is anticipated to earn transaction revenues primarily from fees charged to merchants and consumers on a transaction basis through its mobile application. The Company will rely on third party partners to perform all money transmission services. The Company may earn revenues from other value-added services, which are comprised primarily of revenue earned through partnerships, referral fees, subscription fees, gateway fees, ticketing, peer-to-peer payments and other services that will be provided to merchants and consumers.
HUMBL Marketplace – Here merchants will list a wide range of soft goods and digital assets to mid-market audiences, that, when appropriate, also incorporate the benefits of blockchain. HUMBL provides merchants with the ability to list and sell goods through greater levels of authentication, by leveraging the HUMBL Token Engine and HUMBL Origin Assurance. These technologies enable a merchant to trade, track and pay for assets. HUMBL also plans to issue NFTs, or Non-Fungible Tokens, that allow entities like global athletes, celebrities, agencies, artists and companies to monetize their digital images, multimedia, content and catalogues on the blockchain.
And how does HUMBL plan to profit from offering HUMBL Marketplace? The Company will recognize revenue when its transfers control of promised goods or services to customers. The net transaction revenues will primarily include final value fees, feature fees, fees to promote listings, and listing fees from sellers in our Marketplace. The net transaction revenues will also include store subscription and other fees often from large enterprise sellers.
HUMBL Financial, launched in January 25, 2021, is developing the ability to package the new, digital asset investment markets into “one click” for the customer. With the total value of the digital asset markets in excess of $2 trillion dollars, many believe that investment markets will need to migrate to more digital forms of asset tokenization. This move will create opportunities on the blockchain. HUMBL Financial has developed index, active and thematic investment products called Exchange Traded Index (ETX) products that allow customers to invest in baskets of assets on the blockchain. This is an exiting new form of investments, that could pay off big for HUMBL.
Humble launched these Block Exchange traded Index, ETX, on April 2nd, 2021. They are proprietary, multi-factor blockchain indexes, trading algorithms and financial services for the new digital asset trading markets. BLOCK ETXs comprise over 20,000 lines of proprietary code.
BLOCK ETXs are algorithmically driven software services that allow customers to purchase and hold digital assets in pre-set allocations through their own digital asset exchange accounts. BLOCK ETX will be compatible for U.S. customers who have accounts with Coinbase Pro, Bittrex US or Binance US, and are also available to non-US customers who have accounts with Bittrex Global.
HUMBL is moving fast to continue to differentiate themselves and build blockchain assets. On May 24th, HUMBL, Inc announced the launch of its HUMBL Non-Fungible Token (NFT) Gallery, which is available on its website HUMBLpay.com. The HUMBL NFT Gallery, you see here, will allow content creators to create NFTs and consumers to purchase them.
The focus of the HUMBL NFT Gallery is to provide white-glove creative services and distribution to digital creators, artists, and entertainers in sports, music, entertainment, fashion, gaming and photography.
Since then, HUMBL formed partnerships with a Brand Ambassadors including USA Track and Field athlete, and Harvard Graduate, Gabby Thomas. Gabby is also representing the US this year in the Summer Olympics. This is a great move to gain HUMBL more media exposure!
The most recent HUMBL move was to Purchase Tikeri which was announced on June 04, Tickeri, Inc., is a leading Latin-focused ticketing platform. The purchase price for the acquisition of $20 Million, was paid with a mix of debt and common stock.
HUMBL will be delivering ticketing, peer-to-peer remittances, and mobile pay services to Latin American customers, through the existing Tickeri platform. They also have big plans for expansion.
Tickeri has seen great enthusiasm for live events in 2021 They are excited to continue expanding the Latin music market in the US and abroad.”
In aiding you with your analysis, whether an investment in HUMBL is right for you, it’s important to look at their financials.
Here you see the HMBL yahoo finance profile. the company has a market cap of 988 Million, and an average daily volume of over 11 Million shares traded per day. This is a significant volume of shares, and obviously day traders have flooded into this stock. HMBL has an unbelievable beta of 326 which means the stock moves 326 times more than the stock market does on average, when comparing monthly price changes and volatility.
Here you will see Humble’s OTC short report – the stock was shorted 62% shorted on July 9th and has been ranging between 62% and 40% shorted – so this will continue to be a very volatile stock! Can this stock bust through this short selling pressure?
Now let’s talk about the all-important financials. One of the biggest risks of OTC stocks, is their lack of financial stability. So, I prepared to do a deep dive into HUMBLs financial report from their latest Quarterly SEC Filing. If you are invested in HMBL or considering an investment, you’ll usually find these details to be valuable.
But for HMBL, you can see there that there isn’t much to glean from the financial reports. Humble is new to the stock exchange after merging with Tesoro, ticker TNSP, in December. While the two companies did announce a merger, it seems that this was a classic reverse takeover. Tesoro Enterprises served as a vehicle for HUMBL, LLC to go public.
In the Q1 2021 income statement, it isn’t surprising to note that HUMBL’s revenues are low for this new company, and that their Net Loss is sizable. The comparison to 2019 doesn’t really apply because of the merger.
Most important is the Q1 cash statement. Especially as there are many ways that a company can legally massage income numbers, but cash from operations – versus cash raised from financing activities for example, is key to a company’s health. Currently Humble is in a furious development process and clearly burning lots of cash, which is to be expected at this early stage. I would expect this burn to continue for some time, yet. HIMBL’s success will depend upon them being able to raise cash from financing or from selling more shares, until their products are released and producing significant revenues.
In the meantime, HUMBL is clearly a winner in the disruptive technology space. Blockchain and Fintech are really hot right now. Investors will need to be patient, but it may be a good time to start slowly averaging into this stock. But remember this is not financial advice, so do your own diligence.