Imagine that you started off this week with 10 million dollars in your pocket, and you wanted to start a business. How long would it take to create what IFON/Infosonics has?
Brand name recognition. Operation experience. Organization and headquarters and offices in multiple countries. Over 50 employees. Established sales in 28 countries. Tens of millions of dollars per year in sales, year after year, while building brand recognition. Real world users reviewing your products for free on Youtube (many with tens of thousands of views and tons of comments, mostly positive).
Now, what if I told you that after achieving all of that, that you would still have your ten million dollars in your bank account?
What would all of your business that you created be worth? There is a ton that I did not mention. Well, since the company has 10 million in cash (they disguise it by saying net working capital), then right now shareholders are getting everything for FREE, as the market cap is right around 10 million. Now, compare that to one man operations in the MJ field, where the valuations go into the hundreds of millions with zero chance of success for most of the companies.
Sooner or later, deep value like IFON finds itself with a higher stock price. In 2014 it happened when shares blasted over $4 from under 50 cents, and this took place in just a few months. Back then MJ stocks crashed, as well, after having spiked previously.
IFON offers one of the very few opportunities where you have a likelihood of making multiples of your money in a short period of time without a lot of downside risk at all. I stated previously that the monster moves are made from the lows without catalysts. This has happened partially already, as the price has risen from under 40 cents to over 70 cents in a blink. There did not have to be a catalyst at all, other than continuing forward improving the business over time, but this new cloud software that they have been working on over the past year (will be released in the second quarter) could be the catalyst that really moves the needle. IFON will probably move higher over $1 and even $2 pretty soon just on finding a price range that is not ridiculously low. Any and all good news over the next three months will push IFON way higher.
Look at the move a few years ago when it went up 10 times in a hurry. It would be VeryKool if it happened again, and if it does, you will feel like you are on a rocket ship, as there just aren't a lot of shares available, and more and more people are following it each day. They will not want to miss out as they see it go higher, and there is a legit chance of a wild ride to the upside, as buying creates a higher move up, and it feeds on itself, finally bringing in speculators looking for a quick buck, that might lead to a blow off top of over $5. But if the new business is promising, it could roll past $5, even if with speculators on board who haven't really done the research or know the company.
Nobody can predict short term stock prices, but $2 and more seems to me in the cards between now and the launch of this new platform. It could go higher, but $2 would be a reasonable value of the company, not knowing how the new cloud business will work out. If the new business catches on, IFON goes over $5. Insiders never sold a share when the price was over $4, and that speaks volumes.
