It’s no secret these days that the Robinhood trading platform has changed the stock market. A new breed of trader, coordinating over Reddit chats and shooting from the hip, has come to wreak havoc on traditional notions of valuation, market pricing, and the relationship between a publicly traded security and its moorings in fundamental data.
But it would be a dire mistake to believe that the Robinhood army is entirely without rhyme or reason. In fact, these new market participants are often best faulted for bringing immediate momentum to long-term concepts. For example, take a look at a chart of Nikola (NKLA), an electric vehicle play that was recently taken public through a shell merger. The theme is plain enough: the EV shift is inevitable. And it lines up with a passion for younger investors: renewable energy and reduced emissions.
We would suggest a dark horse candidate for a future Robinhood spike in interest: ISW Holdings Inc (OTCMKTS:ISWH): the fundamentals are there, with consistent double-digit sequential quarterly sales growth over a series of quarters and EBITDA profitability as of Q3 2019. But perhaps more importantly, the company is now commercially tied into both renewably energy and cryptocurrency mining.