The novel coronavirus pandemic weeks have seen new recent highs in a wide range of stocks, including Remark Holdings (NASDAQ:MARK). Year to date, MARK stock is up around 345%.
The stock is currently around $2.30 per share after falling under $1 in the fourth quarter of 2019. Such a run-up in price has brought considerable daily trading activity as well as interest from potential long-term investors.
Back in 2007, MARK stock was valued at more than $100. However, by 2008 it was down to $25. And by 2009, it was below $2.
The volatility continued in 2014 when shares advanced past $10 and climbed to more than $15 in 2018.
For long-term investors, Remark has not been a good or reliable investment. Yet the recent jump in price is making many people wonder if their fortunes might be turning around.
Thermal Imaging and MARK Stock
Remark Holdings is artificial intelligence (AI) and digital media specialist. Its AI platform, named KanKan, “offers various solutions, such as retail intelligence and customer analytics solutions, FinTech risk analysis and lead acquisition solutions and workplace and public safety management solutions.”
The company is headquartered in Las Vegas, with additional operations in Los Angeles and China.
On April 30, the company released a statement highlighting the increased interest in its thermal imaging devices that are used to scan people’s temperatures. It said it had shipped products within the U.S. and to Japan. However, there were no more details on who these customers were or the size of the (potential) orders.
As a result, MARK stock jumped to levels not seen in a long time. It was a penny stock at the end of April, closing the month at 46 cents. On May 27, it hit a 52-week high of $3.56.
In the quarterly results announced on May 28, management also said that as part of 2019 business developments, it has entered into agreements to provide similar temperature screening solutions in China. Once again, there was not much detail in terms of potential revenue figures. Since the release of the quarterly results, however, there has been profit-taking in the shares.
The company recently announced in a tweet the news of approval by the Federal Communications Commission FCC of its RM-TFR8 smart terminal with near-field communication and facial-recognition technology. Although investors initially reacted positively, MARK stock later gave up those short-term gains.
Could Sharecare Propel MARK Stock to New Highs?
The internet is buzzing with how a potential upcoming IPO by privately held Sharecare may affect the price of MARK stock.
Sharecare describes itself as a “digital health company that helps people manage all their health in one place. The Sharecare platform provides each person … with a comprehensive and personalized health profile where they can dynamically and easily connect to the information, evidence-based programs, and health professionals.”
Owners, financial backers, and fans of the health care platform include television personality Dr. Oz, Oprah Winfrey, and Remark Holdings, which holds a 4.5% interest in the group. Sharecare has been on investors’ radar for a possible IPO in months come. Needless to say, in case the group goes public, then MARK stock would likely benefit.
InvestorPlace contributor Larry Ramer concludes, “Remark could give investors a rare ticket to an extremely “hot” IPO, and the stock’s market cap is below $250 million, making its valuation reasonably attractive.”
The Bottom Line on MARK Stock
The group is expected to release quarterly results next in August. If you are a long-term investor, you may want to see more specifics, i.e., customer and order details, on Remark Holdings’ recent business updates that have helped push MARK stock to a 52-week high. Most investors would also like to learn more about Chinese operations and business developments.
You may also want to keep an eye on not only MARK stock but also on Sharecare news. At this point MARK stock is a speculative investment. Yet it can pay off handsomely if its own AI platform takes and/or if Sharecare has an IPO soon.
As long as you are aware of the risk/return profile of an investment in MARK shares, then you may want to put some of your risk capital into the company.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities.