Technically, this stock looks like it might crack at any moment. Why is that? Because the shorts (30 million declared, and undeclared) want it to look that way. They have painted a descending triangle on the hourly chart, which followed through to the next support level (a buck), and then is now going sideways.
 
The Shorts want you to sell your shares out of perceived fear. Its the only angle they can play, because they are creatures of habit. I suggest you don’t fall into their lair. They weave a trap like a spider. Why? Because its what works on the TSXV - the high probability play is to short pre-revenue stocks that shoot up based on hype hoping to fill private placements and raise money. Their game is to do this day in and day out and they normally win because revenue is far from today. The fact is they are wrong with NXO, and they they have a lot to lose! They are betting you will sell before news comes out. This is the reason for my post.
 
News can come out any week now, or any day in fact. News from Nokia (which Rich G. held an executive position, and has much pull), or from any of the Qualcomm 15 second BTV teasers: Samsung, LG, or Sony, or …., how about a medical instrumentation manufacturer from Europe, or how about the drone manufacturers, or the … you get the idea.
 
The shorts work high volume for small moves, and are well funded as we have witnessed with the smackdown from 1.53 to 83 cents recently. They are motivated by profit alone, and will cover when they are proven wrong. Currently with valuation set at a buck, they have 30 Million to gain; however, if the price goes above $1.53, they WILL cover as long as the catalyst is real. Why, because their loss potential is infinity. If any one of these deals get inked, news comes out, and valuation spikes to $0.45+ cents per Million revenue expectations, they are F#<ked. This is how the short squeeze happens. Calculations are simple: we get $x for each device sold by each OEM. All you have to do is look at the public guidance for units sold, multiply by $x and that’s our revenue. Because we are a Pure Play AI Tech Startup, we get a P/E multiple of 50 to 150. Pick your numbers, divide by 150 million shares outstanding and you have your projected target price to value NXO at. I can’t see it anywhere below $1.80 no matter how pessimistic I try to be.
 
Deals are coming. It’s not a matter of if, it’s a matter of when. With endorsements from Qualcomm and NVIDIA, the Preferred Partners are the ones in the SoC firmware and they are the ones promoted by these companies. Hello! If you only have your toe in the water, why not put your foot in and double up. The odds are good now.
 
I called my mother today, and asked her is she bought enough. I said “What if it doubles from here or triples - do you think you have enough to make it worthwhile?”, and “Are you ok to hold it if the shorts push it down before the official news hits?” She thanked me for calling.
 
How many times in life do you get an opportunity to be “in the know” of a pre-revenue company about to earn a tsunami of revenues? I’m in: 100%. There is no cash in my portfolio, and no diluting it with blue chip dividend stocks who will still be there next year after the fortune 500s embrace ALIIS as the contact lens for all their devices and processes reliant on the quality of a video feed.
 
I asked myself recently: Is there a better sector than AI right now to earn my investment dollars? Is there a company with more growth potential out their than NXO? I haven’t found any.
 
Buckle up, we are ready to ramp. And let the shorts squirm before turning brown from the sustained follow through of unexpected news!
 
I leave you with a YouTube video of the investor on the other end of your phone who lays down big bucks based on your well researched advice, and rides the wave until he just has to bail and take his profits, vs us early investors biting salt water wave after wave waiting for the perfect wave now swelling within sight.