MGT Capital Investments Inc (NYSEMKT:MGT) In A Bull/Bear Battle

Shares of MGT Capital Investments Inc (NYSEMKT:MGT) have been locked in a bull/bear battle ever since the announcement that John McAfee was joining the company as its new CEO. While shares have pulled off the highs, so far the bulls are winning. While the bears constantly bash the company, it's taken the form of more whining than anything else. The recent chart action supports this thesis as shares held the $2.25 support level and look to be making a new run higher after consolidating nicely.

MGT and its subsidiaries are principally engaged in the business of acquiring, developing and monetizing intellectual property assets. MGT's portfolio currently includes social casino and gaming platforms, and ownership stakes in DraftDay.com, a top daily fantasy sports wagering platform and DraftDay Fantasy Sports, Inc. operator of an online entertainment marketing and rewards platform.

MGT also recently announced the execution of an asset purchase agreements to acquire certain technology and assets from D-Vasive Inc., a provider of leading edge anti-spy software, and Demonsaw LLC, a provider of a secure and anonymous file sharing software platform. In conjunction with the anticipated acquisitions, the company also announced the proposed appointment of John McAfee as Executive Chairman and Chief Executive Officer upon closing of the transactions. Further, MGT Capital also intends to change its corporate name to John McAfee Global Technologies, Inc. Closing is contingent on customary conditions including approval by MGT's stockholders.

The latest news is that John McAfee conceded the Libertarian Party nomination for President of the United States to former New Mexico Governor Gary Johnson. This is a positive for MGT and its shareholders as that distraction is no longer an issue for McAfee. He can focus on the task at hand and that's MGT. McAfee said:

"As Chief Executive of MGT, I will lead a team to aggressively develop technology platforms, software, hardware and components designed to protect people and their freedoms. Under the technical leadership of the Company's proposed Chief Technology Officer, Eric 'Eijah' Anderson, we will be laser focused on bringing these technologies to market. It is my life's work. I fully expect that we will leave an even greater and longer lasting impact than the company I created in the 1980's."

Demonsaw is certainly an interesting acquisition and one that is right up John McAfee's alley. Using multiple layers of encryption (both symmetric and asymmetric), Demonsaw offers users full control of data and also offers private router services . Demonsaw is a fully decentralized, mesh-based network that does not use P2P, providing protection of IP addresses. Demonsaw is available in 32-bit and 64-bit versions for Windows, Apple OSX, Android, Raspberry Pi and Ubuntu.Demonsaw also brought Eric Anderson into the MGT fold as its new Chief Technology Officer. He is well known as "Eijah" in the hacker community and the founder of Demonsaw. For the past five years he was an Associate Technical Director and Lead Programmer for Rockstar Games where he architected core engine and artificial intelligence code for Grand Theft Auto, among the world's highest grossing video game franchises. Before that Eric was Lead Programmer for Guitar Hero 6 at Activision and also served as Portfolio Architect of Security at American Express. McAfee said:

"Artificial intelligence will be crucial to the next generation of cybersecurity systems. Eijah's proposed appointment as Chief Technology Officer will cement our edge in the creation of cybersecurity products in this new paradigm of cyber threats."

Currently trading with a market cap of $49 million, the last few trading days signal to us that higher prices are ahead for MGT. Investors are focusing more on what McAfee plans to accomplish with MGT rather than the issues the bears have raised. While we can't say we disagree with everything the bears are saying and there are some red flags with MGT and upcoming dilution, Mr Market is telling us that they are wrong and Mr Market wants to go higher. We have found that it's much easier to make money going with the trend rather than trying to fight it. McAfee is certainly looking to crush the bears and recently said:

"I want to reiterate my personal commitment towards the creation of a major force in cybersecurity. As a listed company with proper corporate governance and regulatory standards, MGT will be the vehicle I use to create wealth for all stockholders."

We will be updating Insider Financial as soon as we know more. For continuing coverage on MGT, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in MGT and have not been compensated for this article.