[ad_1]
InvestorPlace – Stock Market News, Stock Advice & Trading Tips
Prior to 2021, Takung Art (NYSEAMERICAN:TKAT) mostly flew under the radar in the investing world. To be honest, not too many people were trading TKAT stock, or art stocks in general.
Source: Sahara Prince/Shutterstock.com
It’s amazing how quickly things can change. Today, financial media pundits are discussing art — something they wouldn’t usually do.
What’s going on here exactly? Has the mainstream financial media suddenly gained an appreciation for fine art? Or are they simply looking to capitalize on a trend?
Of course, they’re interested in making money — and there’s nothing wrong with that. Today, we’ll examine a recent wave of interest in the art world, and how Takung Art fits into the picture.
TKAT Stock at a Glance
But first things first — we need to take a closer look at the stock in question, as TKAT stock has made some swift moves in 2021.
Last year, the stock simply couldn’t get off the ground. Frustratingly, it spent the entirety of 2020 as a penny stock — defined by the U.S. Securities and Exchange Commission (SEC) as a stock that trades under $5 per share.
In March of 2021, however, the big liftoff moment happened for TKAT stock. By March 15, the share price had reached $8.39, effectively putting the stock above penny-stock territory.
Yet, that wasn’t even the end of the story, as the bulls kept charging ahead in March. Amazingly, the stock rallied to a 52-week high of $74.11 on March 23.
As of April 1, TKAT stock had pulled back to $33.50. Therefore, investors might be able to accumulate the shares at a discount to the peak price, while still riding the momentum of generally bullish sentiment.
A Different Business Model
Typically, we might think of a piece of artwork being owned by one person. Or maybe, it could be owned by a single business entity, such as a museum.
But what about a group of individuals or businesses being part owners of a work of art? It’s a novel idea, and Takung Art is an innovator in facilitating this unusual angle on art ownership.
According to the company, Takung’s business model is to “continually add to its fine art listings by offering collectors units in carefully selected items.”
After a work of art is listed on Takung’s app, the company divides it into “equal ownership units based on its appraised value.” Takung is based in Hong Kong, China, and most of the company’s art traders are located in mainland China.
What’s good about this system is that it allows non-wealthy people to own part of a great work of art.
Moreover, it’s potentially quite lucrative for Takung as the company earns multiple revenue streams, including “listing fees, trading commissions, management fees and authorized agent fees.”
Art Meets the Blockchain
Takung Art has been utilizing this unique business model for quite a while. So, why would the financial community suddenly take an interest in the company?
It’s because traders and investors are hoping that Takung will get involved in non-fungible tokens, or NFT’s.
These are digital properties that are stored on a digital ledger or blockchain, much like a cryptocurrency token might be stored on a blockchain.
But instead of representing a stake in a crypto coin, an NFT signifies a stake in either something physical like a painting, photo, gem or piece of jewelry or something non-tangible such as a tweet.
NFT’s are a super-hot commodity, with buzz going around about $1 million being offered for a single tweet-as-an-NFT.
Admittedly, Takung Art doesn’t deal in NFT’s at the time of this writing. Yet, investors are feverishly searching for stocks to trade in order to capture the NFT trend.
Could TKAT stock be the right asset to add to your portfolio if you want to ride the NFT wave?
It’s certainly possible, as Takung Art might get involved with NFTs. If that happens, it could send the share price soaring.
The Takeaway
There’s no guarantee that Takung Art will get into the NFT business. However, it’s certainly possible and interested traders should keep their eyes open for developments.
In the meantime, even if we don’t all appreciate fine art, at least we can appreciate Takung’s unique approach to facilitating art ownership.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
More From InvestorPlace
The post Takung Art Stock Shows Plenty of Potential on Rising NFT Interest appeared first on InvestorPlace.
[ad_2]
Source link