GUARD DOG INC (OTCMKTS:GRDO) Is A Crypto Runner

There are companies in the OTC universe that keep reorganizing the management beside radically changing their business direction bearing in mind the current trends. Also, if they can identify new sectors with high growth, the market, most of the times, respond very well. The share price many times increases and shareholders, who identify the opportunity, can make a profit.

This is what seems to be happening to GUARD DOG INC. (OTCMKTS:GRDO), which is focused on the digital asset and cryptocurrency marketplace. It commenced the year 2017 by releasing fascinating developments that included the appointment of a new CEO, launching new mining operations in the USA and Hong Kong, and noting that initiatives to enhance shareholder value were coming.

Naturally, the market participants reacted very well to the news and the share price spiked up. From $0.0001, the share price increased to close to $0.019 in only one month delivering great stock returns to those who were informed correctly. Also, the trading volume was also magnificent; more than 200 million. Check the following stock chart and form your own opinion before we provide ours:

The 1-year chart for GRDO

GRDO Brief History and Business Objective

The company was incorporated in the state of Nevada on September 27, 2005, and is currently headquartered in Winter Park, Florida.

Its business model is based on the acquisition and management of a diversified portfolio of profitable, growth-oriented companies. As noted in the documents consulted, the company seems to have acquired "management expertise and business alliances" throughout these years. We believe that this will be the most significant asset of GRDO.

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A new Management Team

On January 5, 2018, the company noted that the previous CEO has stepped down from his position as President and CEO of GRDO, and Brian Estrada is now holding this post.

What's our take?

When companies are not performing well and are not able to draw the attention of the market, it usually helps to hire new personnel for the top positions of the organization. This measure often brings new management ideas to the company, so the market regularly listens more carefully to the management. We hope that it will happen in this case as well.

The new management commenced very well. Check the following words and please note the tone:

"Immediately, the Company intends to actively pursue adapting a policy of updating its corporate governance and reporting standards both of which are aimed at restoring and increasing shareholder confidence and value." Source

Additionally, several actions were reported to be taking place. We believe that following are the most significant:

- Update and bring current the company’s status to the State of Nevada- Update and return current the company’s financial reporting and disclosure status

Readers need to remark that providing new financial statements will help the company communicate with more market participants. Additionally, it will help the market assess the intrinsic valuation of the shares much better.

What's moving the market? - Entering the cryptocurrency sector

The market did appreciate the right initiatives, but we needed to wait some days more to read the most interesting from GRDO. On January 9, 2018, the company noted that it would focus on developing three new core business units focused on the digital asset and cryptocurrency markets.

Check the following words of the new CEO:

“With cryptocurrency digital mining already approaching a $4 billion dollar industry, Guard Dog is undoubtedly in the right place at the right time. With China cracking down on mining operations within mainland China, the need for other countries to come online quickly with significant hashing power is growing by the minute. We are aggressively entering an industry where the demand exponentially outweighs the existing supply. We are ahead of the curve because of our technical know-how and existing networks." Source

The three new core areas of development announced by the company are the following:

- GUARD DOG DIGITAL MINING: it is a division that will mine in the USA and Hong Kong. Mining rig machines hashing Sha-256 will be used to mine Bitcoin, and Scrypt algorithms will be used to mine Litecoin. The company said that it would be delivering a full business plan in the next weeks; thus we will be informing our readers. News about the potential capacity could make the share price run.

- GUARD DOG MINING RIG HOSTING: this will be a rig solution for the miners who don't want to use their electricity and space. Clients will be able to send their mining rigs to the company's location, and GRDO will deliver the funds to customers every week.

- GUARD DOG DIGITAL ASSET PROTECTION: the company said that it would be using its experience in the security sector to collaborate with other players operating in the leading-edge of blockchain security.

No more issuances of free-trading stock for 120 days

On January 11, 2018, the new CEO also noted that the company would not issue more shares in the following 120 days and it is exploring ways to reduce the number of outstanding shares.

“Simply put, GRDO’s float will not increase for at least 120 days.” GRDO CEO Estrada. Source

It was celebrated by the market, which pushed up the share price. Stock dilution is one of the dramas in the OTC universe, so when companies stop issuing shares, the market participants are always interested.

What's our take and Conclusion

We believe that all the initiatives noted in January are very positive. If these measures are executed, the share price should continue its upward trend. Conversely, we also need to remark that there is still a lot of work to be done, and it will take time to regain the confidence of the market.

Currently trading with a market cap of $4.7 million, GRDO is an exciting story among small caps. With $0.08 million in total assets and $0.8 million in liabilities, we also expect a plan to recapitalize the balance sheet. It is the last thing that the company needs to explain to the market participants; if the new CEO does, many more individuals will be interested in the turnaround of the share price.

We will be updating our subscribers as soon as we know more. For the latest updates on GRDO, sign up below!

Disclosure: We have no position in GRDO and have not been compensated for this article.Image courtesy of Ben Terrett via Flickr