Here's A Quick Turnaround Trade In United American Healthcare Corp (OTCMKTS:UAHC)

As most readers will no doubt already be aware, the cryptocurrency space has been one of the most active and rewarding industry sectors of 2017 so far.Bitcoin itself has risen dramatically in price and is looking likely to break the $5000 mark over the next couple of days, having traded for less than $1000 apiece towards the end of last year.We've tried to cover as many of the public market exposures as possible and one of those that we keep going back to is MGT Capital Investments Inc. (OTCMKTS:MGTI). UAHC Daily ChartThe latter is progressing nicely in line with the rise in the price of bitcoin over the last few weeks, having initially taken a hit when the Chinese government announced it was making ICO's illegal and shutting down exchanges across the country.Another company, however, one linked very tightly to MGT and one that we introduced towards the end of last month as a brand-new play in the space, is yet to recover from its correction. We think this lag in recovery is exactly that – a delayed market response – and that, as a result, it presents a nice quick opportunity to jump in and pull a profit from the markets ahead of things rebalancing.The company in question is United American Healthcare Corp (OTCMKTS:UAHC).Mid to late August, United American Healthcare announced that it had made a strategic investment in the above-mentioned MGT, with the capital targeted towards expanding the latter's bitcoin mining operations.For those not familiar with MGT, the company is a cybersecurity company that, until recently, was headed up by John McAfee (he is still at the company, but is in charge of cybersecurity now as opposed to overarching operations as CEO) and it just announced the launch of a product called Sentinel, which is a network security device.However, alongside the development of Sentinel, MGT has built a large bitcoin mining operation – an operation that makes it one of the largest bitcoin miners in the US – and, along the way, has been able to draw direct benefit from the rise in the price of bitcoin throughout 2017.United American Healthcare, in an attempt to capitalize on MGT's success in the space, formed an entity called UAHC Ventures and paid $2 million for a secured convertible promissory note and a warrant to purchase shares of MGT common stock. There is also the potential for the latter to pay its monthly redemption fees in stock, meaning – overtime – UAHC’s exposure to bitcoin (and MGT) could deepen.So why is all this important now?Well, at the end of August, MGT ran up to $3.95 a share before correcting to $1.83 in the wake of the above discussed Chinese regulatory actions.At the same time, United American Healthcare went through exactly the same move, running to $0.87 a share before correcting to around $0.30 apiece.The difference between the two companies, however, is what has happened since.From its lows at $1.83, MGT has risen to around $2.60 a share. That's a close to 45% appreciation across the period.In contrast, however, United American Healthcare has risen from $0.34 a share to current levels at $0.34 a share – a just 13% appreciation.In other words, MGT has bounced substantially higher from regulatory-driven lows than has United American Healthcare. With the two company's now tightly linked based on the above-discussed position held by United American Healthcare in MGT, we think the former's recovery should be in line with, or at least close to, that of the latter.This means that, over the coming few weeks, we will likely see some upside action in United American Healthcare – action to which a position in the latter at current prices will expose a trader.Check out our previous coverage of UAHC hereWe will be updating our subscribers as soon as we know more. For the latest updates on UAHC, sign up below!Image courtesy of Zach Copley via FlickrDisclosure: We have no position in UAHC and have not been compensated for this article.