05/06/2023

Art dealers regularly seem to find sleepers in auctions, car boot sales and junk shops. Stock market investors dream of the same. However, they do not generally meet with the same success rate, as shares have brokers, research reports, shareholder presentations and media campaigns all creating awareness and attracting new investment.

Tap Global

However, there may be an exception, Tap Global (AQSE: TAP).  It should soon be discovered by professional and institutional investors. But currently the company is in unintentional stealth mode with a shareholder list comprising entirely of retail investors. In addition, there is no active sales broker and there has never been a research report written, shareholder group presentation or integrated marketing communication / minimal shareholder communication.

Timing

Herein lies the potential opportunity. A new chairman started on 1st June, with a new CEO getting his feet under the desk on 12th June. Of the back of this one has to assume a broker with research capabilities will be appointed. The timing of all of this looks to be impeccable. Tap’s sector is crypto, fintech and payments, an area which after over a decade has finally come of age. One could say that for the company it is in the right place (UK listed at the right time), but with the wrong share price.

The timing from a crypto perspective could not be better for Tap’s new chairman and CEO.

In April 2024 we have the next bitcoin halving. The 6-month lead in to this will again presumably generate a huge bitcoin rally, and attract a new generation (both old and new) of crypto investors and traders. The Tap app offers an extremely professional, yet incredibly simple way to join the global crypto community.

There are definite plans to expand globally and several well-regarded investors are expecting Australia and SE Asia to be top of the list. Applications for licenses to offer crypto to retail investors in Hong Kong opened on 1st June. A massive opportunity for Tap which needs to be seized.

Tap vs Revolut

As well as being a significant potential turnaround situation, investors in Tap have exposure to the crypto industry which actually qualifies for the tax-free benefits of an ISA. Ideally, one owns both the listed TAP share and the XTP token via the app. It should be remembered that owning Tap’s XTP token is not the same as owning the shares with the benefits that come as a shareholder.

Tap can be likened to having the opportunity to buy shares in Revolut at a $30million valuation not a $30billion valuation. In fact, given the regulatory hurdles that Tap has overcome, and the stock market listing, there maybe many who prefer the much smaller company currently, purely on these aspects.

Disclosure. The author is a shareholder of Tap and a regular user of their app.