Sponsored by Primetime Media and Disseminated on Behalf of VivoPower Int’l*

The markets floundered yesterday, with job cuts spiking, AI names getting hammered, and traders trying to see through the fog. I saw one setup bounce while the markets sold off, and I’m watching to see if it builds momentum again today.

TODAY’S TOP ALERT! 

VivoPower International (Nasdaq: VVPR)

👉  VVPR is TODAY’S #1 ALERT 👈

Happy Friday, Folks, Jeff Bishop here,

Stocks had another rough day yesterday, with the S&P 500 closing down 1.1% and the Nasdaq dropping 1.9%.

AI stocks took a particular hit as headlines circulated suggesting the sector may be overvalued.

But the real eye-popper was the report from a private outplacement firm that job cuts in October topped 153,000, the highest readout for the month in 22 years and a major surge from the month before.

With the government shutdown, investors have been flying blind on the state of the economy, so the report had an outsized impact.

Even with all the pessimism swirling, I alerted a stock yesterday morning that closed the day in the green, and that at its peak hit a double-digit gain:

I pointed out that the stock had just touched the bottom of its support range around $3.00, and that it had made several sizable bounces from support since May.

Those bounces each played out over several days, and I’m watching VivoPower International (VVPR) again today to see if the reversal will be part of a bigger move.

The company is currently “undergoing a digital asset transformation” — with a special focus on XRP — and yesterday afternoon, I came across this headline:

We also know that asset manager Canary Capital is planning to launch an XRP ETF as early as next Thursday, and that could be a real catalyst for VVPR.

Stay tuned to VVPR today to see if it extends the bounce-back!

👉  VVPR is TODAY’S #1 ALERT 👈

In case you missed my dispatch yesterday, here are some details on the company…

VVPR historically has been a sustainable energy solutions company specializing in electric vehicles, solar energy, and battery technology.

To date, it has had operations in the United States, Australia, Canada, the Netherlands, the Philippines, the UAE, and the United Kingdom.

It has operated its solar projects through its subsidiary, Caret LLC (website here).

In the past, Caret has been a “vanilla solar development business” but last December, VVPR announced it “will commence Dogecoin mining operations with revenue and profitable cashflow generation flowing from the first week of January 2025."

It expected the potential to generate annual revenues of up to $25 million, and cash EBITDA of up to $12 million, which it said would be reinvested into its electric vehicle subsidiary, Tembo e-LV.

At the same time, VVPR was working to develop “up to 55MW of its own renewable-powered mining capacity to be used for Dogecoin and Litecoin mining,” which would generate revenues up to $150 million per year in Dogecoin mining.

In March, the company revealed its intent to spin off Caret through a direct listing on the Nasdaq with an implied market cap of $250 million.

Caret was to “initially focus on cryptocurrency mining, with an emphasis on mining Dogecoin” which it would then convert into Bitcoin at an effective discount.

Then in June, VVPR confirmed July 9 as the record date for eligibility “to receive a special dividend relating to the spin-off of Caret Digital Limited” valued at an implied market cap of $308 million. 

VVPR shareholders as of that date would receive 5 shares of Caret Digital for each VVPR share held.

VVPR’s main focus over the past few years has been on its EV business, Tembo e-LV.

Its offerings include “next generation Electric Utility Vehicle (“EUV”) powertrain conversion kits.”

These kits convert 4x4 LandCruiser and Hilux vehicles to fully-electric powertrains “that are fit for purpose for mining and other industrial applications.” 

The company has also developed a supply chain across Asia that allow it to produce its own fully electric OEM pickup utility vehicle, called the Tembo Tusker.

The base model Tusker “has a range of 330 kilometres, as well as a payload capacity of 1 tonne, and an unbraked towing capacity of 750 kilograms.”

VVPR has had a number of deals in the works for Tembo, but the one that’s really taken off has been with Energi Holdings, an Abu Dhabi-based energy solutions company.

In May, VVPR revealed Energi’s intent to acquire a 51% controlling stake in Tembo based on a total enterprise valuation for Tembo at $200 million.

The latest on this came on August 18, when VVPR said “Energi will proceed to secure a 51% shareholding in Tembo e-LV B.V. (“Tembo”) via a strategic PIPE investment at the previously advised total enterprise valuation of $200 million.”

The deal will enable Tembo to combine with a SPAC, and VVPR “would continue to retain a significant shareholding in Tembo should the business combination be successfully consummated.”

With these spinoffs in the works, on May 28, VVPR announced a $121 million private placement priced at $6.05 per share “spearheaded by His Royal Highness, Prince Abdulaziz bin Turki Abdulaziz Al Saud, Chairman of Eleventh Holding Company in Saudi Arabia with participation from a number of other prominent digital asset industry investors, institutions, as well as the investment office of VivoPower Chairman, Kevin Chin.”

The plan was “to launch an XRP-focused digital asset treasury strategy that also encompasses the contribution to building out the XRPL ecosystem for real-world decentralized finance blockchain solutions.” [emphasis added]

Then in June, VVPR launched a partnership with Flare to generate yield on its digital assets, “beginning with a benchmarked initial phase of US$100 million.”

“This marks the first major execution of VivoPower's new corporate strategy and a significant validation of the XRP ecosystem's utility for institutional treasury management.”

On August 11, VVPR said it had budgeted “to purchase an initial $100 million of privately held Ripple shares … subject to final approval from Ripple’s executive management.”

Based on market prices at the time, “a purchase of $100 million of Ripple shares translates into an underlying 211 million XRP token exposure with a current market value of $696 million.”

In addition, it would “continue to directly acquire and hold XRP tokens.”

VVPR concluded that it “will become the first and only publicly listed company in the United States that provides shareholders with exposure to Ripple shares as well as XRP tokens.”

The next day, VVPR said it had selected Crypto.com “to be a strategic partner to provide custodial support for the expansion of its digital asset treasury holdings strategy, as well as with regards to Caret’s digital asset mining strategy.”

As part of the partnership, VVPR shares “will be available for trading through Crypto.com’s broker-dealer, making it easier than ever for crypto native retail and institutional investors to trade $VVPR through a secure and innovative digital platform.”

The latest came on November 3, when VVPR signed an exclusive heads of agreement with KWeather, working toward a definitive agreement by November 30.

As conceived, VVPR “plans to invest US$5 million in exchange for a ~20% stake in KWeather.” KWeather “plans to use the funds to buy VivoPower shares and become South Korea’s first and only company to provide exposure to XRP and potential Ripple Labs.”

“Together, the companies plan to launch the world’s first WeatherCoin (weather derivative instrument) for applications including climate risk management.”

The deal is working through Vivo Federation, which VVPR launched “to extend and replicate its Digital Asset Treasury (DAT) strategy beyond the U.S. Vivo Federation is pursuing strategic acquisitions of public companies outside the U.S. to build a global network of entities aligned with VivoPower’s vision for decentralized, impact-driven finance.”

In sum, VVPR is now at a crossroads, balancing its legacy EV business with a bet on digital assets, especially XRP.

Last Friday, we learned that asset manager Canary Capital is planning to launch an XRP ETF as early as November 13, and that could be a real catalyst for VVPR.

As you do your own research on VVPR, be sure to read the press releases above for details on its recent pivots and pending deals. You can find even more on this page of the company website.

As always, be sure to approach your trading in a responsible manner. Trading is very risky, and nothing is ever guaranteed, so never trade with more than you can afford to lose. 

Please read the full disclaimer at the bottom of this email as well so you are aware of additional risks and considerations. Always have a well-thought-out game plan that takes your personal risk tolerance into consideration.

Bottom line: VVPR is undergoing a digital asset transformation, and its stock has made several large bounces since May from the $3.00–$3.60 level.

The stock hit double-digits intraday yesterday and closed in the green. I’m watching it again today to see if it extends that bounce-back.

💥Keep VVPR at the very top of your radar as the day unfolds!

To Your Success,