KULR Technology Makes MicroStrategy Look Like A Real Bargain - Sell

(7min)

Summary

  • KULR Technology is marketing itself as an investment into a number of key megatrends in today's markets like Bitcoin, Generative AI, Energy Storage, Nuclear and Defense Technology.
  • In recent weeks, the company has started to replicate MicroStrategy's business model of selling overvalued shares into the open market and using the proceeds to accumulate Bitcoins.
  • While MicroStrategy is currently valued at approximately 2x its Bitcoin holdings, KULR Technology's multiple is closer to 9x.
  • Even when assigning a very generous valuation to the company's tiny core business, downside could be north of 40%.
  • Given KULR Technology's massive overvaluation and considering the risks associated with the company's Bitcoin accumulation strategy, I am reiterating my "Sell" rating on the shares.
  • Looking for a helping hand in the market? Members of Value Investor's Edge get exclusive ideas and guidance to navigate any climate. Learn More »

Crypto currency and digital wallets concept background. Futuristic bitcoin icon in world of technological progress and innovation. CGI 3D render

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Note:

I have covered KULR Technology Group, Inc. (NYSE:KULR) or “KULR Technology” previously, so investors should view this as an update to my earlier article on the company.

Last month, I initiated coverage of KULR Technology with a "

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This article was written by

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I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.

I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.

Despite not being a native speaker, I always try to deliver high quality research to followers and the entire Seeking Alpha community.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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