U.S. Global Investors Inc. (GROW) was reported 6.20% up in market trading on Wednesday. U.S. Global Investors Announces It Has Realized Substantial Gains in Its Investment Portfolio. At $4.97 per share, the company is currently around 245.14% up year to date in the stock market. At the time of writing, U.S. Global Investors Inc. (GROW) has a market cap of $76.94 million. The average transaction volume for GROW over the past month (171035 shares per day) is trailing its average daily volume over the past year by 34.07, which suggests market participants have been more active in this stock of late.
U.S. Global Investors Inc. (GROW) has been in rally mode, as indicated by the relationship between its 200-day and 20-day major moving averages. That said, over the past 30 days, GROW shares have risen 40.49%. The stock has moved up 245.14 over the trailing 12 months, gaining behind the rest of the market by 1473.43%. It has also trailed competitors and similar names by -34.08%.
The U.S. Global Investors Inc (NASDAQ: GROW), recently disclosed that 10 million shares of HIVE Blockchain Technologies (OTCQX:HVBTF) had been sold, locking in major returns. HIVE is the first publicly traded crypto mining company in the world. The company reports that, pursuant to the approval of the TSX Venture Exchange, it intends to reinvest the proceeds of the sale back into HIVE via a private placement of unsecured convertible debentures.
Since selling the 10 million shares of HIVE, the firm locked in profits of nearly $18 million. If regulators approve, 15 million dollars of this will be placed in a private placement.
It is estimated that the debentures will maturity 60 months after the date of issuance, carrying interest at a cost of 8% per year, payable monthly. Each one is expected to be redeemed at par by HIVE at any time and convertible into common shares in the capital of the Company at a conversion price of C$3.00 per share.
Furthermore, 5 million common share purchase warrants are required to be granted to the Company. For a term of three years from closing, each whole warrant shall allow the Company to purchase one common share of HIVE at a price of C$3.00.
Looking at Key Performance Indicators
Naturally, a cursory survey of superficial price points from the chart don’t say a whole lot about where GROW shares could be headed. That’s why we need to dig a little deeper and check out what some of the most important momentum indicators seem to be saying.
The relationship between changes in price and the underlying strength or weakness over periods can point out deeper factors in the pattern that can often generate insights for technical analysts through momentum factors. Two of our favorite oscillating indicators are the Relative Strength Index (RSI) and the Stochastic %k Oscillator. In each case, the scoring is on a scale somewhere between 0 and 100, and in case, the levels to watch are “70” and “30”, with the former representing an “overbought” state and the latter presenting an “oversold” state.
With that in mind, here is a look at GROW shares from this perspective. The 20-day RSI reading for GROW is currently 68.60, which indicates that is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. If we look at the 20-day Stochastic %k measure, we find it at 81.57, which represents another indication of a overbought outlook.