What’s up guys so in this video we’re gonna talk about urban one stock that sticker symbol u o in E and this. Stock has absolutely went crazy over the last couple of trading sessions and it’s actually was the most popular stock on robben track as. Well rap and track basically shows what people are buying selling on Robin Hood so as you can see here urban 1 and urban 1k that is. The that is like the other class of shares without. Voting rights both of these socks with a number two and over you know over 13,000 people.
Picked up the Class A shares and 9,000 people picked up the second class shares. I believe Class D so guys uh because of this um you know this stock is. Absolutely launched and skyrocketed so it just recently closed at around $27 so it’s a little bit down in after-hours guys but this stock was basically trading at around a. Dollar about a dollar or two dollars just a few weeks ago and a lot of people made a lot of money if you guys bought this up on this huge run-up so gonna kindly. Go over and splain to you guys what urban one is so you guys enjoyed this video please give. Me a thumbs up and whether or not you should be buying this stock so let’s kind of look at the background of what really went on this news story so there was.
A really nice article posted on radio and television business report it says urban once stock breaks records following the brigade Celso Brigade Capital. Management’s Cayman Islands leveraged capital structures funds sold off all the chairs and the nation’s foremost media entity super serving African American customers guys so this is alfred Liggins he’s. The CEO about urban one so as you can see guys the stock absolutely went crazy and the sheriff’s finished at around $27 for an incredible 315 percent gain.
Guys in just one day and the volume was super high as well so basically what is going on everyone is kind. Of wondering why this stock went up so much well I think definitely the brigade sale it’s definitely part of it as well so if we take a look I’m gonna show. You guys something on the candles and then I want to kind of zoom in on the last couple of training days to give you guys basically a kind of a close-up. View of what’s been going on over the short run so as.
You can see the stock is just being churning up so basically around the 15th it was basically out of a buck and then ran all the way. Up to hit resistance have $40 and now it’s been settling in at. 24 so if we take a look go back to that gear today chart we can see that it’s up huge on these two big candles so you know this could be a. Dangerous position usually when a stock has run up this quickly it’s a short squeeze so my shorts Queens means is that obviously when the stock was going up. A lot a lot of short sellers what they do is is they simply bet that the stock is going down so they borrow a lot of shares.
From their broker hopefully that the stock will drop in price and then they can bring buy those shares at a tree a cheaper price and profit from the difference but. When the stock goes against short sellers and it keeps going up they have. To buy the stock to cover their losses so that is. One of the reasons why I think the stock went up so much and one day it was a massive short squeeze so let’s talk a little bit more about this company give you. Guys an overview of you guys are wondering so this is the largest african-american media owned company in the United States and perhaps even the world. They they were founded in 1980 guys so they’ve been around for going on 20 years.
It would be 20 years this year and basically they have different media networks so they have different brands so they have. Their own television network called TV one they have another TV network they recently launched called Clio TV they actually started in radio so. They have you know different radio stations all over the United States targeting African Americans and then they also have some other brands as well. They own a website called News one so they’re basically uh basically a media. Broadcasters with radio television and internet for the African American audience as you. Can see here they reach around eighty two percent of black.
America solo if you take a look at their latest. Their latest earnings release guys you can see here what the company has basically been doing in the short okay so the. Company actually posted their first quarter earnings released a few weeks ago and that’s probably one of the reasons. Why that capital management firms sold off their stake as you can see here they say that net revenue was ninety four million dollars a decrease of three percent from the same period and like.
I said the company generated a loss of around twenty seven million dollars so you know this company’s been around for quite. Some long time and until recently it really wasn’t doing. Much in terms of returning value the shareholders they do.
Have a pretty big blue footprint when it comes to the african-american audience but the company just really wasn’t generating. A lot of money and things like that and revenue has been kind of decreasing slowly over the years. But they do have control of that large segment guys and I think that uh you know if they’re able to produce better content and kind of reengage. In african-american audience I think that they can definitely do some interesting things in the future guys so one of the reasons why people are wondering well why is the stock running up in the. First place well obviously I think that that Brigades sale kind of got the stock on the radar and we know. That a lot of stocks all over the Nasdaq once again this is the Nasdaq traded stock had been absolutely skyrocketing so before this genius.
Brands was up ton there’s been a lot of just a lot of NASDAQ stocks that have just taken off you know to. The moon but this one in particular is interesting so I. Do think there’s another potential catalyst behind this stock as well okay so. There’s been a lot of articles floating around the internet on sites like CNBC about Americans rally to support black owned. Businesses so as you can see here you know you.
Know the whole situation guys I don’t want to make this a political channel. But obviously there’s been a lot of things going on in terms of complaints and there’s been a lot of. Protests and things like that so you guys already know. What’s been going on in the United States and other countries are protesting as well so perhaps that. This sky rock is skyrocketing ownership and a you know a black owned business a. Black owned you know run business run by black CEO and I.
The guy Alfred Liggins the CEO his mother actually started this company her name is Kathy Hughes so she launched the company is based in Silver Spring Maryland and the. Company I believe they had their first radio station back in the 1980s and since then they’ve expanded so perhaps this is. Another way to kind of support black businesses it seems like a lot of corporations everyone from. PayPal and many many different companies have come out and and express their support uber lots of different companies.
Express their support for black owned businesses so perhaps this is exactly what’s going on this is just. Another trend and people are buying this stock up to.
Kind of support the largest black-owned media company but guys you know this is another stock where not much has actually changed. Fundamentally so there aren’t any new product launches there aren’t any you know you know new media networks being launched. There isn’t really any other news going on and the fact that this stock is traded up forty five million. On volume where the average volume was like you know maybe a couple thousand shares here and there I’d see a couple days before that it was like 17,000 shares. This is a potential short squeeze so how to play a stock like this well normally you would.
Wait to see on day three I think it’s a little um I think it’s risky to think that the stock is going to gap up again. But um like I said you know for me you know I missed this one I’ve been trying I’ve been following stocks like these cheaper stocks like these. For years if you guys take a long-term look at this stock in accumulation mode for years and. If we take a look at the longer-term chart we can see that basically you know when.
The stock IPO do you know it’s basically been on a slow trickle so guys there. Is some risk here if you guys gonna think you can chase ’em chase.
Those gains like I said you stop loss orders for me you know I missed the stock you know I saw it I actually saw it when it was around. When I was around here and I was just shocked that he gapped up so much so I actually missed this trade guys. I really should have bought this one but you know like I said I was looking at some other Thaksin you know there’s so many. To so many different plays going on now you just can’t teach catch every single play for. Koretz for you guys they’ve caught this stock so for me the long-term price target for this stock there is. One positive that it comes to urban one stock and simply the distance off doesn’t have so many shares outstanding and the float is pretty low so I’m gonna show you guys what.
I’m talking about I’m talking about what these numbers is is that on the float and the shares outstanding so as you can see here these are some. Extremely low numbers 17 million shares float and 1.5 8 million shares outstanding guys so you know these numbers mean that they just aren’t that many shares available so that’s. One of the reasons why you’ve seen such a massive massive run-up in this price so 17 million share float. Is extremely small it kind of we rarely see that nowadays where companies more companies are simply issuing more shares and diluting their stocks even more so guys you know the majority of this stock. Is owned by the insiders as well so a lot of those insiders like Cathy Hughes and her son and Alfred Liggins and many of them people on the board. Of directions directors they got absolutely rich during over these last couple of days but you know with the short squeeze going up.
So much like that there is some risk and buying at the top here but on the volume is very strong so. For me I just think I missed this one you know. But you know since the stock is basically being going to basically due to the recent political things going on there hasn’t really been any change. In the underlying business I wouldn’t be surprised that this stock fell back down to where it not maybe not exactly where it.
Was before because now it’s on people’s radars but I would just be very very cautious of chasing those gains so hope it provided some insight on this video guys like I said the. Stock did hit resistance at 40 so for me I’m not gonna chase here I’m probably just. Wait but this would probably be a nice stock to acquire what surprise comes back down because it is the largest african-american media. Owned company in the world and there obviously is some there’s some value. There you know as long as they continue to expand and offer more con so I hope you guys enjoyed this video hope you guys give you guys kind of.
A broader view on the company a couple of reasons why the stock ran up and what I’m personally doing but by all means guys I know a lot of you guys. Out there are pretty aggressive when you’re buying stock so the thing I. Would recommend what a stock like this is is be sure to cut your losses and you know don’t necessarily hit for a home run you know it’s better. To take a small gain that it is to take a massive. Loss so just be careful with the stock because when a stock wraps.
Up like this it can fall just as fast so just use some caution here so that’s it for now guys I hope you enjoyed this video please give me a thumbs up if you. Enjoyed this content and so – that red subscribe button to receive more videos I like to cover stocks that are actively. Traded on Robin Hood and Sox that I’m buying personally myself that’s it.
Until next time guys take care.