How SHOM Reaches Ten Cents
...and sooner than most might think.
All the way back in April/May, this new foreign based company took over the ticker SHOM and early discussions had this company pegged as at least a 50M revenue company once they reverse merged everything they had planned into the mix. At that time, everyone was elated and talking about this stock as being one of the top four or five plays of the year…and then six months passed…with not much of anything. No news of any significance, no updated financials, no nothing and the enthusiasm on the iHub board kind of withered away, except for a few diehards.
Top four or five plays of the year? GUESS WHAT! I THINK THEY WERE RIGHT!!
This company is just now starting to piece together a narrative that is easy to understand for the shareholders and they’re getting better at it. The last two PRs discussed a 180M line of credit and a contract with Coca Cola…and they’re just getting started.
So why the delay? And why do people not trust that this is real?
Answer: Reverse Mergers take time and there’s a myriad of details that have to be worked out and considered. The legalities are numerous and it just takes time. BUT IT HAPPENED.
Just like SP*L today. With SP*L, you had a huge group of people including myself in a similar situation waiting daily for any word at all on confirmation of a similar reverse merger and that confirmation hit last night (after six long months). Again, Reverse Mergers that are real and credible take time.
So here we are now with SHOM in a similar situation. The only difference is we don’t have a group of people waiting on confirmation like SP*L did. We already know this one occurred. But what we have is a disconnect between what most people expected vs what is actually taking place.
Perhaps most who left the board were hoping for some big announcement and a pronouncement on revenue projections and an immediate update on the financials in a series of carefully crafted PRs syndicated across the world on every trading platform with flower and hearts emojis!! Weeeeeee!
Instead what we got was a clash of cultures, maybe a difference of business philosophy and a company only now finding its way on how to promote itself properly via press releases, etc. What they got was a company that went dark for the most part and people lost interest.
I would gather that the majority of the company's attention is on growing the business and in spite of what WE think they ought to do or should have done, they’re moving at their own pace and focused on what THEY think to be important.
Look at that as a gift!! If in fact they are rolling up a 50M+ revenue company then YOU AND I have the benefit of picking up shares that are grossly and ridiculously undervalued (and IMHO will surpass anything that happens with SP*L, just in case you are one for shiny objects.) Squirrel!
Let’s just look at some simple numbers…
50,000,000 in revenue.
Let’s conservatively speculate a 10% profit margin and that’s very low, times an average S&P Price to Earnings ratio of around 25 and then let’s divide that by the number of outstanding shares. Hell, let’s divided it by the number of authorized (1B) and what you have is a…
Twelve and a Half Cent Stock!
Go back and adjust the profit margin to 20% and it’s a Twenty Five Cent Stock.
So here we are in a similar boat to SP*L. Both were waiting six months for a reverse merger. One got confirmation yesterday and the other (SHOM) got confirmation way back at the beginning of the process, but then everything went silent. It spooked a lot of people. The interest on the board dried up and then all of a sudden we get this poorly scripted PR and there seemed to be some life in the old gal after all… only to see interest wane again. That first one was a mess.
And then we get a monster press release that just doesn’t fit with our preconceived notions of what should be published as it relates to a little tiny penny stock… THE COMPANY HAS SECURED A 180M LINE OF CREDIT! Mind Blown!
But only if you look at it through the prism of a tiny speculative penny stock. If you go back and look at all the DD on the front end and the speculation of 50M in revenue or better based on what we were picking up, it makes perfect sense. But, Mind Still Blown!
Oh, and why didn’t they put that out there on all trading platforms, we wondered?
And then recently…A CONTRACT WITH ONE OF THE WORLD’S LARGEST CORPORATIONS…COCA COLA!!
And still some are skeptical, but only if you look at SHOM as just another crap stock down here in the sewer where we all trade.
SP*L finally got the word out that their RM went through, but they left out a lot of details and so people are still in a quandary and can't figure out whether to sh*t or shave.
SHOM’s reverse merger happened, they’ve announced a 180M line of credit, what looks to be the first of many major contracts, they’re slowly getting their act together on PRs, every indication at the beginning of this RM transaction was that this was going to be a behemoth of a company and in spite of the DARK period for six months or so, it seems that this lion is starting to roar and do what everyone thought it capable of doing.
750M O/S, a very low float and trading at a tiny 3M market cap.
Back to the cultural and business differences. Perhaps what they’ve been up to is setting up to become a successful company and shareholders were only an afterthought. Financial updates and filings also; only an afterthought. That doesn’t seem to be the case anymore as this stock is starting to come to life, so the question for everyone is…
Where is this one going?
All indications point to it going up (gradually) for the foreseeable future. The question is…
What are we looking at here? Is this just another sub penny play OR is this a 50M+ Revenue Monster in the making that up until recently has just done a poor job of sharing their plans and their business model with their shareholders?
Is this a sub penny play, or is this one of those companies that springs additional press releases on us in the near future further indicating that they are in fact legit and the stock ready to EXPLODE!!
I don’t know about you, but I’m with the longs on this board. Based on all the DD that was gathered and compiled on this stock, I personally believe it to be a top four or five play of the year and yes, I believe this is a ten cent stock or better that simply hasn’t reached .10 trading level yet. GLTA
"One 5Bagger to 10Bagger per Quarter."
