Quick Win by the Algorithm: The Kryptonite of DPW Holdings led to -26.82% fall in 3 days

Quick Win by the Algorithm

DPW Holdings, Inc. (NYSE: DPW) designs, develops, manufactures, and sells power system solutions for the medical, military, telecom, and industrial markets in North America and Europe. It offers custom power system solutions; high-grade flexibility series power supply products, such as power rectifiers; and value-added services for original equipment manufacturers. The company also provides power conversion, power distribution equipment, direct current/active current inverters, and uninterrupted power supply products; switching power supplies, uninterruptible power supplies, and power conversion and distribution equipment frequency converters; and transformer rectifiers for naval use. It sells its products directly through its sales force, as well as through independent manufacturer representatives and distributors. The company was formerly known as Digital Power Corporation and changed its name to DPW Holdings, Inc. in December 2017. DPW Holdings, Inc. was founded in 1969 and is headquartered in Fremont, California.

Over the past months the company placed a bet on crypto-currencies mining and provision of cloud based mining solutions by acquiring IT company FlexiSphere Technologies, Inc. and putting it to work with its wholly owned subsidiary Super Crypto Mining to address this bet. In accordance with the latest press release dated February 1, 2018 of the Company it continues to invest significant capital and resources into its subsidiary Super Crypto Mining. The primary goal is to expand crypto-mining operations through acquiring of additional 1000 and ordering another 3000 mining units and achieve the mining capacity of 10000 active units by the end of 2018. At the same time, all major cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), showed significant drops in market capitalization over the last 7 days, i.e. from 31st January to 6th February 2018. Therefore, one should reasonably expect that with the significant amount of actual cash flow being invested into company’s assets, which produce crypto cash flows that are extremely volatile, comes the significant volatility of the volume of company’s assets and eventually its stock price. In fact, if we look up on the combined graph of DPW stock price, USD/BTC and USD/ETH rates over the same time period we would see high degree of correlation in their behavior:

[Source: Yahoo Finance]

On January 30, 2018, I Know First issued a bearish 3-day forecast for DPW Holdings, Inc. (NYSE: DPW). The forecast illustrated a bearish signal of -25.66 and a predictability of 0.13. In accordance with the forecast, DPW’s stock returned -26.82% over this period, highlighting the accuracy of the prediction produced by the algorithm of I Know First.

Current I Know First subscribers received this bearish DWP forecast on January 30th, 2018

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Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.