The OLB Group Stock News and Forecast: OLB stock jumps on repurchase hopes
- OLB stock soars nearly 40% on Friday, a massive outperformer.
- OLB stock already is up 13% in Monday's premarket trading.
- OLB announced a repurchase program back in July.
The OLB Group (OLB) stock is trending heavily across social media as retail traders look for signs of life in a faltering equity market. Meme stock and retail favorites are in short supply after Jay Powell kicked equity sentiment in the teeth on Friday. Bitcoin's weekend fall will further dent trader sentiment, but OLB is fitting the bill as a potential stock to rally behind on Monday.
OLB stock news
I must admit to never hearing of this one, and why would I with a tiny market cap of $24.8 million? This is a penny stock and as such is extra high-risk. OLB describes itself as "The OLB Group, Inc. is a diversified fintech eCommerce merchant services provider and Bitcoin crypto mining enterprise." Bitcoin mining is not exactly the hot space right now, but it appears traders are focusing on the potential for a buyback to jump into this one.
On July 13 the company made the following statement: "The OLB Group [...] has authorized a share repurchase program of up to 1,000,000 million shares of its outstanding shares of common stock. Ronny Yakov, CEO of OLB Group, said, “Our Board of Directors has authorized this stock buyback to exercise our financial flexibility to buy our common stock from time to time as market conditions warrant. With no outstanding corporate debt and a, historically low, market valuation of 0.4 times projected 2022 revenue of $35 million, the Company sees an opportunity to reduce its shares outstanding at very attractive valuations...The program is anticipated to commence following the release of OLB’s second quarter financial statements in August."
Well, August it is, and OLB had earnings out on August 15. Traders are guessing it may be imminent.
OLB stock forecast
Like all squeezes or fast moves, this is all momentum and will come to an end. Social media is awash with talk of the share repurchase even though this was announced back in July. Nonetheless, it is likely to get increased attention for awhile. Watch for the momentum to stall with a green to red premarket, main session flip, or a high intraday print with a much lower close giving an inverted hammer candle.
OLB chart, daily
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
