originally published Monday, March 23, 2020

All Misc Articles

If we are going to buy any stocks at a time like this it should be in those companies that are set to make money out of the Coronavirus crisis – and this one is. The reason is, despite the name (which is set to change), that the company is taking over Tracesafe, which is a self-quarantine monitoring technology suite known as IMSafe from WiSilica Inc. Tracesafe is a global health monitoring product that may be deployed by governments and corporations as they fight the global COVID-19 pandemic. Details may be read in Blockchain Holdings to acquire Tracesafe system. In addition the company is understood to be doing a significant financing which it is understood is already oversubscribed.

We bought Blockchain Holdings on 13th February and then got stuck with it when it got halted a few days later. Ordinarily we would expect it to open down when it starts trading today, in reaction to the market carnage of recent weeks, but not given the field into which the company is gravitating.

Amongst the positive news associated with the company we have this…

“Already, Tracesafe disposable bracelets are being deployed and in active use by the Hong Kong government to manage and enforce their quarantine program for foreign visitors with initial deliveries completed. Based on the success of the program in Hong Kong, and confirmed orders in excess of 65,000 units, Tracesafe expects to roll out in multiple countries in the coming weeks and months. Tracesafe expects to make its next deliver of bracelets within the next 60 days, and estimates its working capital requirements for such deliveries to be approximately $300,000.”

So it looks like the stock could gap up when it starts trading this morning. We therefore stay long and it is rated a buy with a close stop if it does as expected and opens up.

Blockchain Holdings website

Blockchain Holdings Ltd, to be renamed Tracesafe Inc., BCX.CSE, closed at C$0.305 on 14th February 20.

Posted at 9.25 am EDT on 23rd March 20.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.