SOS Ltd (NYSE:SOS) Stock Pulls Back From High: A Good Opportunity?
4:47 pm Wednesday, August 11th, 2021
Over the course of the past year, the remarkable rally in cryptocurrencies also saw the rise of frenzied interest in the stocks of companies involved in the cryptocurrency mining space. One of the stocks to have got a lot of attention from investors due to its crypto mining operations was that of SOS Ltd (NYSE:SOS).
Even now many are holding on to the SOS stock due to its cryptocurrency mining operations, however, there are experts who believe that the stock may not be investment grade. In this context, one of the most important things that to have been pointed out by certain observers is the fact that SOS is an incredibly opaque company. Despite having redesigned its website not too long ago, it remains largely opaque.
For instance, the investor’s relations page on the revamped website does have the quarterly financial results but beyond that, there is nothing of any importance. So, that is something that should raise the red flag for most investors and especially so considering the fact that the crypto space is all about transparency.
On the other hand, the company’s line of business is fairly unclear as well. In the middle of that rally in crypto mining stocks, SOS had also been clubbed along with companies like Marathon Digital Holdings Inc and Riot Blockchain among others. The company does claim to be involved in the crypto mining space on its website but then again it also states that it is involved in a range of other disparate businesses. Hence, until more information is available about the company investors could do well to avoid the stock.
