UBI Blockchain Internet Ltd (OTCBB:UBIA) Is A Big Winner For Us: What's Next?

Here at Insider Financial we're all about bringing winning stocks to our readers. We take a look at all sorts of plays, both under the radar and in the spotlight, and pick out the ones that we think have the potential to run. For those we think have this potential, we report as to our justification for this thesis.Back on May 26, we published this piece, applying the above framework to a company called UBI Blockchain Internet Ltd (OTCBB:UBIA). The company had started to pick up a bit of strength and we set out to ask the question, what's under the hood? In turn, we tried to use the answer to put forward both a near and a long-term thesis on the stock.Our conclusion was that, while longer term there exists some uncertainty (more based on the nature of the space the company operates in as opposed to its to-date operational activity) the company would almost certainly be a near term runner.Turns out we had it spot on.At the time of our coverage, UBI Blockchain Internet went for $5.30 a share. At last close, the company traded for $13.90 – a more than 160% run in a less than two-week period.With this gain safely in the bag, then, it's time to once more ask the question – what's next? Is there any value in a position at this level in anticipation of a continuation of the upside momentum, or has this stock run its course?Let's take a look.In our previous coverage, our short-term thesis was relatively simple. This is a bitcoin company and the bitcoin market is on fire right now. Regardless of operational advance, or even operational focus, companies in this space are running parallel to the value of the underlying asset. This turned the question from one of "Is UBI going to keep running?" to one of "Is bitcoin going to keep running?"Our answer two weeks ago was yes, and we were right. Our answer today is the same.For those not familiar with the bitcoin space, the reason that the digital currency is picking up strength right now is rooted in a couple of recent developments. First, Japan now accepts the currency as legal tender. The importance of this cannot be understated. Japan has long been seen as the only country capable of kick-starting the process of global legal acceptance of bitcoin and that these expectations are proving valid is increasing speculative loading of the currency. Not only that, but the domestic demand for bitcoin in Japan has dramatically increased aggregate global demand. Couple this with the fact that Korea and the UK are considering similar measures, and then fan the flames with the picking up of the asset's almost daily all time highs by pretty much every major news media outlet in the world, and the year to date gains make sense.And the thing is, this isn’t a short-term run. It's a revaluation that's been years in the making and one that – while likely subject to certain small scale corrections – is going to continue for the foreseeable future.As the underlying asset runs, then, so will companies like UBI.We said it last time and we'll say it again – these are risky plays right now. These companies are running on the back of bitcoin's advance and they are going to correct in line with the digital currency as well. For a risk-averse trader, waiting for one of these corrections and buying on the dip might be a smart move. For the more aggressive trader, however, and for anyone not wanting to miss out on the gains we expect to see between now and the next correction, any time's a good time to jump in.We will be updating our subscribers as soon as we know more. For the latest updates on UBIA, sign up below!Disclosure: We have no position in UBIA and have not been compensated for this article.