We Don't Know Why Zedge (ZDGE) Gained by 33.47%

In late-2023, NIA announced Zedge (ZDGE) at $1.70 per share as its #1 favorite U.S. listed stock suggestion for 2024 and it gained as much as 204.70% to hit a high on February 12th of $5.18 per share. Although we were pleased with ZDGE's short-term gain of 204.70% from NIA's suggestion price, ZDGE has failed to succeed as an AI play. We are happy to see ZDGE gain by 33.47% today, but it needs to be looked at as a value play. Their Zedge App is very valuable and so is Emojipedia, but their AI initiatives haven't worked out and neither has their acquisition of GuruShots.

One Stop Systems (OSS) is the market leader in rugged AI servers for use at the edge of the battlefield whether it be on land, at sea, or in the air. For companies like Nvidia (NVDA) their strongest growth is behind them. For OSS their revenue is already ramping up on a quarter-over-quarter basis, but because 3Q revenue was still down slightly on a year-over-year basis due to weak revenue from their German Bressner subsidiary, OSS remains undiscovered. This current quarter ending on December 31st will be one of OSS's strongest quarters in history with a return to positive year-over-year revenue growth, and there is room for OSS to be rapidly revalued to an enterprise value of 3, 4, or 5x revenue... and it would still be extremely undervalued compared to companies like BigBear.ai (BBAI)!

If we exclude OSS writing down the remaining inventory from their discontinued in-flight entertainment business, their AI focused business based in the U.S. saw strong 3Q 2024 gross margins of 34.6% up from gross margins of 32.7% in the year ago quarter! In comparison, BBAI had gross margins of only 25.9% last quarter and trades with an enterprise value of 6x revenue!

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only and does not provide investment advice.