Penny Stocks, Gold, Crypto, and the Rise of 'AABB'
Grow Your Business, Not Your Inbox
Ever since the global media frenzy that followed the way Reddit retail investors owned the Wall Street big boys and catapulted GameStop (NYSE:GME) from a market cap of $180M to $24B, penny stocks have become all the rage. With low buy-in prices and the potential for rapid, crypto-market-like gains, thousands of subReddit groups are filled daily with avid amateur investors looking to compare their due diligence and ride the coattails of the next big thing.
While the rise from the ashes of companies like GameStop and AMC makes big news, these were both well-established companies that had hit on hard times. Assembling huge hordes of retail investors is an easier task when people are familiar with the company name and its history. The real skill is identifying those under-valued penny stocks that are just starting out and which could be primed to blow up.
Falling into this category is Asia Broadband, Inc. (OTC: AABB), an exciting company focusing on the production, supply, and sale of precious and base metals, primarily to Asian markets. Asia Broadband, Inc. has caught the eye of the retail investor niche, as evidenced by its 35,000 watchers on Stocktwits, but this is a project with much more substance to it than mere retail investor hype.
More than Reddit buzz.
In May, the U.S. consumer price index recorded a 5 percent jump in headline inflation when compared to May of 2020. This was the biggest such leap since 2008, and everybody knows what happened then. In this context, a follow-up article from CNBC outlined how the markets should be braced for hard times but that some sectors would be better placed than others to take the hit and prosper while the rest suffer.
The CNBC article was centered on comments made by Livermore Partners Chief Investment Officer David Neuhauser. Neuhauser believes that commodities are at the start of a new “supercycle” that will generate significant returns in the next three to five years.
This brings us back to Asia Broadband, Inc. as commodities are its core business, with the company aggressively expanding its gold mining options in Mexico in recent times. Not only this, but with the dollar sure to be suffering in the face of rising inflation, Asia Broadband is hedging against this eventuality by diversifying its offering and confidently taking steps into crypto with the AABB Gold hybrid cryptocurrency that is backed 100 percent by the company’s own gold holdings.
Stocktwits and Reddit buzz is one thing but looking closer at the fundamentals that are being put in place here suggests that the end of 2021 could be lining up nicely for Asia Broadband on several fronts. Its share price has a 52-week high of $0.64, and while the price has experienced some volatility at the time of writing, this signals a definite buying opportunity.
The El Salvador connection.
El Salvador recently made big international news when its president, Nayib Bukele, announced that Bitcoin would now be legal tender in the Central American country. With approximately 70 percent of the Salvadoran population of 6 million people being unbanked, it is hoped that Bitcoin can spur economic growth and allow Salvadorians living outside of the country to send money more easily back home by using Bitcoin instead of costly USD transfer services.
Asia Broadband, Inc. responded to this news by immediately announcing that it plans to grow its presence in Central America and build up a demand for its AABBG token. Asia Broadband will do this by pursuing a business development program designed to afford substantial commission and discount incentives for retailers and customers to fulfill transactions with AABBG and facilitate circulation expansion.
Asia Broadband will also look to take advantage of President Bukele’s wish to drive crypto investment in El Salvador by setting up a satellite office in El Salvador that will serve as the company's Central and South American hub for AABBG business development and marketing.
With so much of the penny stock craze driven by rumor, exaggeration, and sometimes outright lies, it is refreshing to see one proactive company looking to go beyond the hype and deliver tangible products and initiatives that seem to be ideally positioned for growth in these uncertain economic times.