BLBX - Blackboxstocks Inc. (BLBX) - A Disruptive Fintech Initiating Coverage on Blackboxstocks Inc.

Initiation. We are initiating research coverage on Blackboxstocks, Inc. with an Outperform rating and a $4.50 12-month price target. Blackboxstocks combines a market scanner with a social media platform and educational tools for investors. We believe the unique combination, with significant organic growth opportunities, presents investors with a favorable risk/reward opportunity.Blackbox System. The Blackbox System is a unique and disruptive financial technology platform. The web-based software employs "predictive technology" enhanced by artificial intelligence to find volatility and unusual market activity in over 10,000 stocks and 1.5 million options contracts that may result in the rapid change in the price of a stock or option.New Subscriber Milestone. In December 2021, Blackboxstocks surpassed the 6,000 paid subscribers milestone, with the subscriber base up 422% since the beginning of 2020. This growth mostly has come through "word of mouth." With the funds now available for a dedicated marketing campaign, we expect subscriber growth to accelerate. Capital Raise Provides Funds for Growth. In November, the Company completed a $12 million stock offering. We believe the net proceeds will enable the Company to boost its growth through increased advertising and through the implementation of multiple new initiatives, including additional applications for the Blackbox System.Projections. With the capital raise behind it, we believe Blackboxstocks is at an inflection point with significant organic growth opportunities. We forecast 4Q21 revenue at $1.54 million and an loss of $0.05 per share. For the first quarter of 2022, we are projecting revenue of $1.66 million and breakeven EPS. For full year we are projecting revenue of $7.77 million and EPS of $0.03. Read More >>