A Speculative Blockchain Insider Buy

Welcome to twenty-two. The year the twos come together. We look forward and hope to have a fantastic new year together, two fingers crossed. But before we can go forward, we need look back at the final week in insider buys for this week’s Insider Buy with a purpose.

Like many, maybe most, executives appear to have spent the week between Christmas and New Years on vacation. Insider buys and dollars spent dropped significantly from the prior weeks. It is to be expected.

As a result of the lack of activity, there weren’t many options to choose from. In fact, we only found one, very speculative company that met some of our criteria. CurrencyWorks Inc. (CWRK) is that high-risk company. CurrencyWorks provides turnkey set of services for companies to develop and integrate blockchain and cryptocurrency technologies into their business operations.

A trio of CurrencyWorks insiders purchased the micro-cap. (1) Both director James Geiskopf and Chief Financial Officer (CFO) Swapan Kakumanu purchased 57,291 shares, totaling $33,000. Director Cameron Chell acquired 119,027 for $36,800. All small buys, we know. That’s how skinny the options were from last week.

Nonetheless, multiple insiders buying meets our cluster criteria. Director Chell’s limited history of getting right checks the past performance box. Chell sold 250,000 shares for $355,000 at $1.42 on May 5, 2021. (2) Since, CWRK tanked, falling as low as $0.202 with a 52-week high of $3.70. (3)

Wall Street doesn’t have any estimates for earnings or sales. So, we must rely on the CWRK’s chart to get a sense of what might be ahead for CurrencyWorks. On the downside, the tiny financial services company has support at $0.20. As we type, the stock trades at $0.27. Investors interested in taking the risk might consider cutting losses if the stock closes below $0.20.

To the upside, initial resistance is the 50-day moving average of $0.30. If traders can take CWRK through the 50-day benchmark, then $0.385 to $0.40 is the next level of resistance. In our opinion, fifty cents is the key pressure point for CurrencyWorks. If the stocks can clear $0.50, then it could reach the next technical checkpoint at $0.70ish.

OVERALL: CurrencyWorks Inc. (CWRK) is a highly speculative insider buy candidate in a space with a lot of interest, blockchain technology/cryptocurrencies. On the risk/reward scale using our technical take on CWRK, upside appears to outweigh downside.

CurrencyWorks Inc. (CWRK) is only appropriate for investors who are willing to lose 100% of their investment.

 

1 – https://www.secform4.com/insider-trading/1515139.htm

2 – https://www.secform4.com/insider-trading/1717192.htm

3 – https://finance.yahoo.com/quote/CWRK?p=CWRK