I happen to be interested in computer hardware and cryptocurrencies. The resent crazy over bitcoin has given the opportunity to listed companies to take advantage of this phenomenon by inserting specific keywords in their press releases and even changing their names to include popular terms. I would not comment on the exuberant valuation of such companies, nor even bother to mention them, but I cannot resist but to tell the world the Digital Power Corporation (NYSE.American: DPW) is pulling off a sully-obvious scam.
Today, they released news that a subsidiary of theirs will be selling a POWER SUPPLY designed to target the crypto mining market and specifically the Antminer S9 by Bitmain. Power supplies are manufactured and sold by hundreds of companies and there is no specific difference between a power supply for a regular computer and the so-called special Antminer hardware. Just because cryptocurrency hardware is referred to as rigs or miners, that should not confuse the unsophisticated user that they require any special power supply compared to your regular desktop computer. All power supplies do is convert AC power to DC power. That's it!
Bitmain sells their power supply for $105 and DPW's Super Crypto Power via Coolisys Technologies, Inc is offered for $200. And did I mention that both have pretty much the same spec?!
Do not be fooled by the keywords crypto, bitcoin, Anminet, Bitmain, blockchain and so on. I cannot way to short DPW! I hope some prominent news channels alert the public of this scam.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a short position in DPW over the next 72 hours.