RDE, Inc. Hits the Nasdaq. Get In Now Before This Window of Opportunity Slams Shut

Six months ago, I issued a warning about a little-known OTC-listed company I’d been following — RDE, Inc. [NASDAQ: RSTN].

Okay, so maybe it wasn’t so much a warning. It was probably more of a “heads up, something big’s coming”.

But whatever adjective you choose, the story remains the same.

It has two parts:

1. RDE, Inc. was set for a probable Nasdaq Capital Markets uplisting this year.
2. If the uplist happened, RDE’s share price would go through the roof.

Today, part one of that just came true. Or, at least, it’s about to come true in a couple of hours once the markets open. The confirmation of the RDE Nasdaq uplisting came through yesterday, and today will mark its first day on the hallowed exchange.

As for part two, that bit’s slightly complicated.

Now, to be clear, I’m still just as convinced that RDE, Inc. is severely undervalued. And I’m still just as convinced that it’s set for a major price correction.

But I’d also be blind if I didn’t acknowledge the giant elephant in the room right now. Markets have just hit a bit of a slump.

But here’s the plot twist — this is actually good news. (We’ll get to why later on.)

Or, at least, it’s good news for those of you who are late to the party on this story. Personally, I’m a little sour about it. But that’s only because I’m gonna have to sit tight a little longer until I get my “ha, see, I told ya so” moment.

But, until that moment comes (and you can bet it will), here’s what’s got me so convinced RDE, Inc. is so undervalued (and why its now-confirmed Nasdaq uplisting will change that).

Onwards and Upwards — RDE, Inc’s Road to the Nasdaq

If you’ve been with me since day one on this story, then you probably already know why I’ve been so keen on RDE, Inc. [NASDAQ: RSTN] for a while now. But for those of you who’re late to the party, let me catch you up.

Starting with the basics, RDE, Inc. [NASDAQ: RSTN] was, up until today, a little-known OTC rarity. I call it a rarity because it was one of the few OTC companies that has actually been doing anything worth paying attention to.

Here’s a quick outline of everything it’s been up to.

Restaurant.com App Launch

This all started back late last year when its flagship brand, Restaurant.com, launched its groundbreaking dining app.

This immediately caught my attention for two reasons.

First, despite the entire category seemingly being saturated, Restaurant.com had somehow identified a gaping hole in the market that no one else was catering to.

Second, Restaurant.com had launched something with all the habit-forming qualities that the most profitable apps have — something that compels people to pull their phone’s out of their pocket just to use the app.

Now, we’ve got a lot to cover here, so I’ll leave this part of the story there. Yes, I know this is all a bit vague, so if you want all the gory details, see this article about Restaurant.com’s mobile restaurant app.

CardCash.com Acquisition

By now, RDE, Inc. had already found a well-deserved place on my radar. But then, the next big bit of news dropped. RDE, Inc. announced it was going to acquire the leading gift card exchange, CardCash.com.

This was a major move for a number of reasons. For starters, it had all the hallmarks of a great M&A move — it ticked all the right boxes, from diversification and operational consolidation opportunities, right through to the nice-to-haves like cross-promotional opportunities with its existing Restaurant.com brand.

Now, again, we’ve got a lot to cover here, so I’ll do what I did before and give you the link to the story that covers the details of RDE’s acquisition of CardCash.com.

Nasdaq Uplisting Announcement

This is the bit where we get to the juicy part — the heads-up I issued six months ago about RDE, Inc. potentially uplisting to the Nasdaq.

So why’s this the juicy part?

Well, whether for better or worse, OTC-listed stocks usually struggle to attract decent valuations.

Most of the time, this is for a good reason. I mean, if we’re being completely honest, OTC markets tend to be littered with opaque, empty shells of once-were companies that are doing little more than treading water as investors hold onto their hopes of something happening.

Other times, low valuations for OTC stocks are completely unwarranted. And it was fast becoming apparent that this was the case for RDE, Inc. [NASDAQ: RSTN].

The specific mechanisms at play here, in a nutshell, are two-fold.

First, generally low expectations for the average OTC stock tend to pull everyone down. What’s that saying about rising tides and boats?

Yeah, the same applies in reverse.

The other mechanism at play here is the simple fact that there aren’t a lot of eyes on most OTC stocks. That means even the gems tend to get missed by most investors, which was clearly the case for RDE, Inc. [NASDAQ: RSTN].

Or, at least, that was partly the case… which leads us to the next big news story in the ongoing saga.

Todd Boehly, Eldridge Industries, Kevin Harrington… Big Names Snap Up Discounted RDE Stocks

The next big event in the RDE, Inc. [NASDAQ: RSTN] road-to-the-Nasdaq timeline dropped not long after the Nasdaq uplisting announcement.

As SEC filing started cropping up for the quarter leading up to RDE’s uplisting announcement, certain names started appearing. Names that are 100% worth paying attention to.

The biggest name (by sheer celebrity status) to find their name attached to RDE is no doubt Kevin Harrington (Shark Tank).

But he wasn’t the biggest in terms of sheer numbers.

That title belonged to Todd Boehly, of Eldridge Capital fame (or Chelsea F.C. fame for our U.K. readers). He took out a massive position, triggering a Form 13G submission, which allowed us to see he’d bought out 11.8% of RDE, Inc. [NASDAQ: RSTN] — a definite flag that something was up.

Or, more specifically, something (RDE’s stock price) was almost certainly going up.

And this is where the plot really started to thicken.

Vivid Seats, Vegas.com, and the Boehly Connection

If you follow any notable investor, you soon realize they often have a “playbook”. Warren Buffett’s “value investing” is the most famous example. But there are plenty more out there.

In Todd Boehly’s case, he has a couple of playbooks. But the one we’re most interested in here is the exact same one that played out with Vegas.com and Vivid Seats [NASDAQ: SEAT] (where Boehly is a board member, major stockholder, and the founder of Horizon Acquisition Corporation — the SPAC that took Vivid public).

For reference, the long story short here is that Vegas.com plays a very similar game to Restaurant.com and CardCash.com. Too similar.

It also found itself in a state of severe undervaluation. Or, at least, it was in a state of severe undervaluation until it 6x’ed overnight as Boehly and Vivid stepped in.

What makes this event so important to the RDE, Inc. [NASDAQ: RSTN] narrative is that so many of the fundamentals are the same.

Similar consumer markets.

Similar undervaluations.

The same big-name investors with their names all over it.

The only difference is the fact the Vegas.com/Vivid Seats story happened first, giving us a strong precedent for what’s about to happen to RDE, Inc.

Now, again, there’s a lot to cover here. So I’m going to do the same as before — if you need more details, see this story about the Vivid Seats acquisition of Vegas.com.

What a Nasdaq Graduation Means for RDE, Inc. Investors

What comes next has already been hinted at. But, since it’s the next part of this story (and also happens to be today’s news), it’s worth highlighting.

As we were just covering when we were talking about the “OTC discount”, OTC-listed stocks rarely get fair valuations. They either tend to be overvalued empty shells, or undervalued movers and shakers like RDE, Inc. [NASDAQ: RSTN].

Naturally, a move to a bigger exchange like the Nasdaq has a tendency to correct this. Greater liquidity, more transparency, more eyes on each and every company paying attention to every single move.

The natural result of this is that RDE, Inc. [NASDAQ: RSTN] will, very soon, find itself heading towards a much more fair valuation. And, if I’m only halfway right here, that’s already higher than it currently is.

Of course, if I’m three-quarters or more right here, then things get much more interesting.

The simple fact is that RDE, Inc. [NASDAQ: RSTN] is undervalued. Boy is it undervalued.

The only thing I don’t know yet is the exact timing for when this correction is about to happen.

If you asked me a month ago, I would’ve given it a timeline of days. But things have gotten interesting since then.

Fortunately, that’s good news if you’re late to the party on this story.

Why the Current Market Downturn Is Good News for RDE, Inc. Investors Late to the Party

If all you’ve done is skim the headlines without looking too deep into things recently, you’d be forgiven for thinking markets are in a bit of a downturn right now.

But, do you wanna know something weird?

Plenty of companies are still doing just fine.

If you don’t believe me, go check out any number of companies in industries adjacent to RDE’s flagship businesses, CardCash.com and Restaurant.com. You know, food and retail companies like Coca-Cola [NYSE: KO], McDonald’s [NYSE: MCD], or Walmart [NYSE: WMT].

I challenge you to spot the dip on any one of those charts.

So what’s going on here? I mean, how’s Walmart still trading as though it’s business as usual if the markets are down?

The answer, of course, is simple — tech stocks are dragging everyone else down.

Here’s a little perspective. Amazon [NASDAQ: AMZN], Google [NASDAQ: GOOG], and Apple [NASDAQ: AAPL]. Together, they make up almost 20% of the combined market cap of every company listed on the Nasdaq. And that’s just the beginning.

And, while there might be mumblings of recession fears and whatnot because of weaker-than-expected jobs data, that’s about it.

A single data point.

Turns out, everything else, from consumer spending and inflation to the biggest indicator of them all — GDP growth — is still going strong.

Of course, if you dig a little deeper, you soon realize the biggest reason for the pullback has a lot more to do with a bit of a reckoning for inflated AI expectations. That’s the big driver of this downturn.

Goldman Sachs was maybe the first big name to raise the alarm here. They did that a couple of months ago. But since then, just about everyone has joined the chorus of voices impatiently asking when will the tens of billions sunk into AI start to deliver a return on investment.

And this is good news for you. After all, despite the rest of the economy doing just fine, the average investor’s still just gonna think “market’s down, I’m gonna sit this one out for now.” (And then they’ll all mindlessly pile back in the moment we hit new all-time highs…)

And that adds a bit of a delay mechanism into the eventual price correction RDE, Inc. is due to make.

And that means, even if you’re only just catching onto this story now, six months after I first raised the alarm, you’ve still got time to act.

How much time, I don’t know exactly.

Markets are weird in the short term. People overreact to a single piece of data, ignoring the bigger picture right in front of them.

But one thing’s sure — in the longer term, in the weeks and months that follow, things eventually go in the right direction.

The big picture always wins.

And we all know the big picture for RDE, Inc. [NASDAQ: RSTN]. Massively undervalued OTC-stock-done-good that’s about to get a whole lot more attention. Which, in turn, will drive the long overdue price correction we all know is coming.

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(Featured image by Ajay Suresh (CC BY 2.0) via Wikimedia Commons)

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