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TODAY'S TOP ALERT! |
(Nasdaq: NIPG) |
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Good morning, ladies and gents! (If you are a Bullseye member, look out for an email with my top pick of the Week dropping by 9:20am EST.) |
Now, if you were in a coma over the weekend, you missed the controversy around Chinese AI company DeepSeek… |
The company has produced models that are roughly on par — or are even slightly better — than leading US models (like ChatGPT, or Grok), all in just two months and for a reported $6 million. |
It seems brain power may be more important than computing power, and investors are recalibrating, with NVDA shares down about 11% as of this writing and the major indexes tanking along with it. |
Now, keep in mind that US investors have been scammed many times in the past with "magical" Chinese tech in the past that turned out to be complete lies, just to get foreign investment and to show the appearance of strength. |
This might well be another case, but the markets are clearly worried this morning. |
On days like today, it's crucial to find small stocks that can perform regardless of where big money is moving… |
And best of all is to focus on stocks that can perform because of the news! |
My #1 alert today has a firm foothold in China, and indeed, it is actually up in the premarket as of this writing — unlike just about every big stock (Nasdaq futures are down 4%!) |
And I've been on a roll with these small-stock, "tactical trade" ideas… |
Just Thursday, I wrote to you about a small eCommerce company that had just announced a bold foray into crypto. |
I said that "today is truly a 'ground floor' opportunity" and said to prepare for "an interesting ride." |
After I told you about that idea, it absolutely ripped higher. |
In fact, the stock was halted before lunchtime as it was moving too fast! |
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What a great problem to have! LOL |
It went on to gain as much as 82% that day, and notched another nice gain on Friday. |
Then, on Friday, I alerted a "tactical" idea on an electric-aviation stock that climbed all day to close up nearly 23%. |
Today's idea is one you need to get on your radar immediately. |
Go ahead and pull up NIP Group Inc. (NIPG) on your favorite trading platform. |
👉 NIPG is TODAY'S #1 ALERT 👈 |
The stock listed on the Nasdaq in July, and ever since then, it has spent most of its time at or above the $7.00 level. |
There was a dip in November followed by a 30%, two-week rally to get back above $7.00. |
Over the past week, the stock has pulled back again, and I'm looking at this as a bottom-bounce idea to see if it will get back up to familiar territory. |
A useful indicator for this is the volume-weighted average price (VWAP). I used the 15-min VWAP below, which is a favorite level of mine. |
The VWAP is a great tool to see if a stock is possibly underpriced, and on the NIPG readout, the stock would need to rally 20% just to hit the VWAP level: |
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I think this one is firmly in oversold territory, and the fact that it is green on a day like today — which could be one of the gnarliest in recent memory for the major indexes — suggests investors may agree. |
I think the stock is being buoyed by the fact that the company has such a strong presence in China. |
Let's look at what they're up to… |
NIPG is a big deal in the realm of esports — organized video gaming where players or teams compete against each other, often in professional tournaments. |
Roll your eyes if you want to, but these "athletes" are incredibly popular and draw huge numbers of youth eyeballs — and that means $$$$. |
The "NIP" in NIP Group stands for Ninjas in Pyjamas, a Sweden-based professional esports organization that has 561k followers on X, 341k followers on Instagram, and 289k subscribers on YouTube. |
I randomly came across this video on Instagram of an NIPG-sponsored athlete that will give you a great sense of the passion (and $) behind esports. |
That's right, people actually gather in arenas to watch these players do their thing. In fact, one of NIPG's sources of revenue is to put on these big events (see here for a video of one). |
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This past summer, the International Olympic Committee (IOC) decided to establish the Olympic Esports Games, with the inaugural event scheduled to take place in Saudi Arabia this year. |
All this to say, esports is a big deal. And NIPG is aiming to profit from all aspects of it — from talent development and arena event production, to game publishing and even hospitality. |
The company was formed in 2023 when Ninjas in Pyjamas (website here) merged with Chinese gaming powerhouse ESV5 (website here). |
It currently has more than 250 staff with offices in Sweden, China, Abu Dhabi and Brazil, and with "home courts" in Wuhan and Shenzhen. |
| Members of Ninjas in Pyjamas |
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In August, NIPG announced a strategic partnership with Homeinns Hotels Group, a leading hospitality company in China, to "establish a joint venture focused on the development and operation of esports-themed hotels." |
It said the first such hotel "is expected to open in one of China's top-tier cities within the coming months." |
NIPG CEO Mario Ho appeared on Bloomberg TV in September to explain how he thinks esports hotels will take over the very popular internet café industry in China. |
He said that these will be 3-to-4 star hotels with gaming hardware in the hotel lobbies, all the rooms, etc., where friends can hang out or spend the night gaming. |
Also in September, the company revealed a foray into game publishing which will include "developing mini-games for social media platforms, mobile games, and PC games." |
Its flagship game, Re: Aetatis, was released in December, with nearly 2 million people signed up for the pre-download. |
In October, NIPG signed a definitive agreement to acquire Young Will, a talent company in China that focuses on short-form video content. As of August, Young Will had more than 115 million fans across Chinese social media platforms and a portfolio of more than 100 influencers. |
And in December, NIPG's CEO appeared on CNBC to discuss the company in an interview I think is highly worth watching. He's an impressive young guy! |
But the really big news — and I don't think investors have paid attention to this — came out last week: a "landmark agreement" with the Abu Dhabi Investment Office (ADIO) to expand in the region with the support of "financial and non-financial growth opportunities valued at up to $40 million USD over four years." |
A portion of that will go to establish the company's global headquarters in Abu Dhabi. |
In exchange, NIPG will advise ADIO on their gaming and esports strategy and support "the growth of a thriving gaming ecosystem … in the UAE." |
The company's revenues have been growing rapidly, with 78% growth from 2021 to 2022 ($41.3M to $73.2M) and 14% growth from 2022 to 2023 ($83.7M). |
I could find only one analyst covering NIPG — Maxim Group — and they give it a 12-month price target of $12.00, meaning triple-digit upside from its current price. |
As you do your own research on this stock, be sure to check out this investor presentation, as well as both the interviews and social media linked above. |
As always, be sure to approach your trading in a responsible manner. Trading is very risky, and nothing is ever guaranteed, so never trade with more than you can afford to lose. |
Please read the full disclaimer at the bottom of this email as well so you are aware of additional risks and considerations. Always have a well-thought-out game plan that takes your personal risk tolerance into consideration. |
Bottom line: NIPG appears to be in oversold territory, and would make a 20% move higher just to get back to its volume-weighted average price. |
With a strong presence in China, NIPG appears to be dodging the DeepSeek fallout that's hurting the big-name stocks right now. |
NIPG is today's #1 alert, and I highly suggest keeping it square in your sights today! |
To Your Success, |
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P.S. Make sure you join me n the Market Master's trading room today at 11AM EST for live trading signals and education. You can access it at no cost right now. |
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*Just so you know, what you're reading is curated content for which we have received a monetary fee (detailed below) to create and distribute. Let's be clear that investing can be quite the roller coaster as stock prices can have wild swings up and down, so consider those crucial risks before you ever consider trading anything we discuss. Make sure you check out our full disclosure down below for the details on how we were paid, the risks, and why these results aren't what you'd call "typical." |
Just a quick heads up about this ad you're reading—as we've said, even though we like the company referenced above, and all the facts we discussed above are true to the best of our knowledge, we are running a business here. To distribute this information and help offset the costs of maintaining our large digital audience, in advance of writing the content above, we received thirty five thousand dollars (cash) from Stock News AI for advertising NIP Group Inc for a one day marketing program on January 27, 2025. This was paid by someone else not connected to NIP Group Inc. It might be obvious, but whoever paid for this might own shares and is likely looking to sell some or all of them at any time after we send out this information, which might affect the stock price. We may also buy or sell shares in the company at some point in the future, although neither RagingBull nor its owners own any shares of the company at this time. Also, keep in mind that due to the sheer size of our audience, if even a small percentage of people decide they want to buy this stock, it could potentially boost interest enough to hike up those share prices and cause a temporary spike, and the opposite is possible as our program ends, though that is not always the case. |
Now, diving right into NIP Group Inc might sound exciting. But remember, it's like venturing into the wilderness—be aware that there's exceptional risk involved in trading. This isn't small potatoes we're talking about; you could lose every dime you put in, so always carefully think about what you're doing. That's why they call this trading, after all. We're shining a light on the good stuff about the company here, but it's on you to do your homework, make your own calls, and determine a plan for your own trading, hopefully with the help of your professional 1nvestment advis0r. |
Oh, that brings us to another crucial point—we're not here to tell you (or even recommend) what you should do with your hard-earned money. We're simply sharing our non-expert thoughts by highlighting some companies we like that could use some help telling their story to more people. We're obviously biased in our writing. We're not here to dig into anything that may be negative about the company; this is advertising, after all! Also, keep in mind that if we make some predictions about the future, these are technically known as "forward-L00king statements" under the securities acts, so take those with a grain of salt. As with all forecasts, they're not set in stone, often wrong, and we certainly can't know where the Company's earnings, business, or share price will be tomorrow or a year from now. |
Everything you read from us is all for your education, information, and possible entertainment. While we believe the info is reliable and accurate, we can't wear a cape and guarantee it. Before you jump into anything, make sure to talk it over with a pro—someone you trust who's licensed to give you real advice. To be clear, |
Neither Raging Bull nor its owners, employees, or independent contractors are registered as a secur1.ties br0ker-deale.r, br0ker, 1nvest.ment advis0r (IA), or IA rep's with the SEC, any state securities regulat0ry auth.ority, or any self-regulat0ry organization. |
So, that's the scoop! If you're intrigued and want to learn more about the companies we talk about, hit up the SEC's website to dig into their filings and see the full picture. |
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