MGT Capital Investments Inc (NYSEMKT:MGT): Opportunity Through Uncertainty

Market uncertainty can create a lot of opportunity for patient investors. The key is filtering out the noise and focusing on the bigger picture. That's the case with MGT Capital Investments Inc (NYSEMKT:MGT). What's interesting is that in spite of all the controversy surrounding MGT, shares have held firm at the $2 support level. Even more impressive is the fact that shares are still up 766% YTD. As we'll discuss further, we still believe there's a lot more upside to MGT.First up, a little background on the company. MGT Capital Investments, Inc. is in the process of acquiring a diverse portfolio of cyber security technologies. With cyber security industry pioneer, John McAfee, at its helm, MGT Capital is positioned to address various cyber threats through advanced protection technologies for mobile and personal tech devices, including tablets and smart phones. The Company is currently in the process of acquiring D-Vasive, a provider of leading edge anti-spy software, and Demonsaw, a provider of a secure and anonymous file sharing software platform. MGT Capital intends to change its corporate name to "John McAfee Global Technologies, Inc." upon closing of the D-Vasive transaction.September has not been kind to MGT and John McAfee. The company announced on on September 15, 2016, it received a subpoena from the Securities and Exchange Commission requesting certain information from the Company. MGT said that it "has no indication or reason to believe that the Company is or will be the subject of any enforcement proceedings. The Company is fully cooperating to comply with the SEC's request."We believe this subpoena is related to the actions back in May when a perfectly orchestrated short squeeze took place. We went into at length what took place here. The announcement of John McAfee joining the company along with a series of paid newsletter recommendations really got the stock moving higher. While the shorts may cry foul play, all of this is perfectly legal as long as everything is disclosed. The paid promo was disclosed and there were no false press releases issued. We believe the SEC inquiry is the result of short sellers that lost money and will not result in any action. The biggest nuisance for MGT, however, is that the ambulance chasing lawyers are now after the company. Again, since it appears the company did nothing wrong, these lawsuits will most likely be dismissed.Second, the New York Stock Exchange informed the Company that it will not approve the listing on the Exchange of the 43.8 million shares that the Company is required to issue in order to complete the closing of the D-Vassive merger. MGT said that "the Company and John McAfee remain committed to closing the transaction and are exploring alternatives." John McAfee added:

"We are determined to consummate a transaction that brings our cybersecurity technologies to market in order to solve the pressing privacy and security issues that society faces."

Third, Showtime is releasing a new documentary on the life of John McAfee. Now we're not going to get into the intricacies or nuances behind what is being said about McAfee. We will admit that he's certainly not a normal person, but then again, most hackers are not normal people. They see things differently than most and that's why they're called geniuses. It's also worth noting that McAfee has not been formally charged with any crimes and he is not in prison. Until a court of law finds him guilty, we don't believe those with agendas should be casting judgment.While September was not a good month for MGT and its shareholders, it is certainly not the end of the world. All of these issues can be overcome. We expect an update any day now on how the company will close the D-Vassive merger. No doubt it was a coordinated effort from the SEC with NYSE to pressure the company. Again, since we don't see any evidence of wrongdoing, there's no reason for the transaction to not be completed. This is McAfee's comeback and best shot at redemption. We don't think he's looking to fail at this stage in his life. Considering the life he's lead, we don't believe it's smart to bet against the guy. We will be updating our subscribers as soon as we know more. For the latest updates on MGT, sign up below!Disclosure: We have no position in MGT and have not been compensated for this article.