Infinite Group Inc. (IMCI)

[Cat]

Another Goldman research report out, reiterates .65$ short-term target:

https://www.goldmanresearch.com/202203071343/Opportunity-Research/imci-the-next-cybersecurity-mover.html

[Cat]

Heck, the acquisition price of Pratum alone was 25 cents per share. Yet here we are at 16 cents....dumb af

This will just instantly move to multi-dollars one day out of the blue, I have no idea why everyone is sleeping on this

[Cat]

After the Pratum acquisition, you'd need to be a special kind of numbskull not to realize that all these new 'partnerships' they've been announcing over the last couple months are prefacing more acquisitions:

Cowbell Cyber Partnership

IMCI making all the right moves to become a 250M$+ mid-market leader

[Cat]

100% B/A spread...wow

Liquidity is getting ridiculous here. They need to be doing a much better job of PR. Revenues, products, acquisitions are all performing extremely well, but the story isn't getting out

At merely 3x revenues, this would trade at over 1$ per share - so why are we at 15 cents?

[Cat]

I'll admit I'm surprised that no one seems to care that they just acquired a reputable company doing 4.3M$ in revenues

Maybe as the quarterlies start reflecting this instant 60+% growth, people will start caring

[Cat]

Good to see us back over 20 cents. Still trading at well below 1x revenues

[Cat]

With this acquisition, a conservative 6x revenue multiple gives IMCI a PPS of over 2$. That is all

[Cat]

Acquisition is beyond legit, see Partum CEO/founder’s post on LinkedIn about it today:

https://www.linkedin.com/feed/update/activity:6895014579068379136

[Cat]

And boom. There it is…the roll up begins. With Pratum, revenues are *already* about 12M$ now — or 3x our current *market cap*. From this point on, this stock has 10, 25, 50x potential as I’ve said all along. Anything below 1$ PPS (mere 3x revenues…) is ridiculous

[Cat]

My point is getting to Nasdaq may make up for it, if there’s enough of a pps boost associated with that. There’s no urgency to do a RS if it wouldn’t be helpful, with OS of about 30M, which is tiny

[iwitness4jc]

I would almost guarantee CAT that it will come. Almost all of these micro cap stocks do a reverse split if an uplist is possible. I have seen it happen several times.

[Cat]

You forgot to mention thats only on the table IF required to uplist to NASDAQ and beneficial for PPS

Going to NASDAQ would be a good thing imo, especially in this market

[iwitness4jc]

If you look at the proxy stmt you will see they are planning on discussing a reverse split on Jan. 26th. Time to get out boys while you still have your shorts.

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
January 26, 2022

The Annual Meeting is being held for the following purposes, which are more fully described in the accompanying proxy statement:

1. to elect three directors;

2. to approve, on an advisory basis, the compensation of our named executive officers (“say-on-pay”) ;

3. to approve, on an advisory basis, the frequency at which advisory votes on executive compensation should be held (“say-on-frequency”);

4. to approve the Company’s 2021 Equity Incentive Plan;

5. to authorize the Board of Directors to effect, in its discretion, a reverse stock split of the outstanding and treasury shares of the Company’s common stock at a ratio ranging from 1-for-3 to 1-for-75, to be determined by the Board of Directors, and to approve a corresponding amendment to the Company’s Amended and Restated Certificate of Incorporation, as amended, to effect the reverse stock split;

[Cat]

Bear in mind they have announced that they are targeting 35-45M$ revenues through these acquisitions, and the senior level hires they have been closing lately (Cohen, Ambrosini, Glickman, etc...) give them the human capital to absorb that volume of new business. 5x those anticipated revenues is 6 - 7.5 $ per share - and the industry average is over 8x revenues at present.

[Cat]

I think we are all disappointed in the amount of time this is taking, but this remains as much of a sure thing as I've ever seen in the OTC. Depending on the number and quality of the acquisitions they bring in, my price target remains in the 2.5 - 8.5 $ range.

As the OTC heats back up this company should start trending upwards with revenue growth and then explode with acquisitions finalized and NYSE uplist plans unveiled

[Cat]

The chart is perfect but chart alone doesn't sustain forward momentum, it just helps. Company needs to do more.

[Cat]

Ridiculous PPS giving IMCI a valuation of *under* 0.5x revenues. Management needs to step up IR, acquisitions, and stick to deadlines. Getting over 1$ PPS (4x revenue) should be a priority

[Cat]

It's just chart action - the chart is solid and will support further climbs into 30s and 40s. But the company really needs to release some acquisition news and concretize the revenue growth before too long

[iwitness4jc]

looks like the MM's took advantage of the up tick last week

[Cat]

Back up over 20 cents now...the fundamentals already support 2$ (and that's *before* the forthcoming multi-million dollar acquisitions)

[Cat]

This absolute monster of a 3-year chart is intact, bouncing off new 'higher lows', and revving back up. Any type of positive news takes us above 40 cents imo

[Cat]

Yet another new top-tier hire from IGI:

Jim Ambrosini LinkedIn

Interview

[Cat]

Interview with Proactive detailing IGI Cybersecurity's development plans

[Cat]

More great events from Stuart Cohen:

https://www.linkedin.com/events/smbcybersecurityseries-whatsmbs6821521127383420928/

https://www.linkedin.com/events/smbcybersecurityseries-howmspsc6827700087733542913/

https://www.linkedin.com/events/smbcybersecurityseries-whyshoul6827703957742338048/


This is high-level activity which is spreading the word and helping IGI network with key players in the cyber space. That's how you become respected and create the acquisition pipeline.

[Cat]

I agree this is a slow one atm...but there are already more revenues than market cap and growth is *obviously* coming. Revenues don’t just magically appear one day out of nowhere — they’ve been making moves nonstop this year that point to substantial growth and acquisitions. Easiest hold for me at this point, it’s coming in a big way

[iwitness4jc]

Cat, I said last week that until they have ACTUAL revenues and not just projections of what they expect, there will not be much action on this stock. I have seen it time after time. Actual Money talks not maybe money.

[Cat]

Yeah I agree, waiting game it is :) I think the first acquisition is what’s needed to get this fired up a bit tbh

[ChiefZ]

Nice video Cat. Seems like just a waiting game at this point. Next couple of years should see this really pop...

[Cat]

Why is no one on this board? Company President just announced in an interview that there is an active plan to progress to NASDAQ via roll-up / acquisition model, targeting 50-100M$ revenues, and apparently no one cares? Don’t blame me when this is trading above 5-10$

[Cat]

Check out this interview...clear as day folks, the plan is NASDAQ

[Cat]

I’m very confident about it considering they just started selling Nodeware and then just hired 8+ cybersec pro’s...revenue will go up this year. They announced 9.4M$ expectation, I.e. 30% growth over last 2020 (7.2M$).

[iwitness4jc]

All that may be true cat, but the question is not when it hits 25% but if and when. That could be a long time down the road, especially if the markets have a pull back.

[Cat]

Price will go exponential when YoY and QoQ revenue increases start posting. This co just increased their headcount by 15-20% over the last 4 months, hiring skilled pro’s holding cybersec certifications and MBAs — sales are increasing.

The point is that we’re currently valued <1x revenue, which is only ‘pricing in’ an expectation of zero growth. Once the co starts reporting 25+% growth it should trade at ~8x revenue, in the cyber space. So just be patient imo, we are golden at these levels.

[iwitness4jc]

Until this Co. can demonstrate that they are increasing revenues over their projection, the price is baked in.

[Cat]

1B$ market cap is 34$ per share, btw. That's the scale of the potential here...

[Cat]

Nodeware is directly competitive with multi-billion dollar software:

https://nodeware.com/overview/competition

[Cat]

Nodeware just won another award:

https://nodeware.com/awards

[Cat]

Nodeware has just composed a great Council of Advisors:

https://nodeware.com/advisors?utm_content=171810324&utm_medium=social&utm_source=linkedin&hss_channel=lcp-72696482

Rock solid stuff, as usual

[Cat]

Check this out:

https://www.linkedin.com/events/smbcybersecurityseries-building6815716042875240448/

Nodeware and IGI has been hosting many events now with the likes of:

Join cybersecurity expert Dr. Keri Pearlson, Executive Director of Cybersecurity at MIT Sloan, to learn about how building a culture of cybersecurity in SMBs can help drive cyber-secure behaviors of every employee.

These are world-class people - probably many are connections from Stuart Cohen. This is the type of foundation that will make it possible to go to the next levels, I'm holding my shares for ultra-long term here.

[Cat]

Wow it's finally almost trading at 1x revenues lol...bring on 65 cents...

[Cat]

At 23 cents, this is trading at ~0.7x est. 2021 revenues (without including planned M&A).

Therefore order to trade at 7x revenue (conservative for a cybersec company) it would instantly be a 10-bagger.

Investment thesis here is literally that simple...it's 10x undervalued today.

[Cat]

IMCI recently updated OTCMarkets profile/ verified + TA verified

Share count actually slightly LOWER as of June 16, 2021:

Outstanding Shares | 26,811,886 | 06/16/2021

[Cat]

Check out Stuart Cohen on LinkedIn....very serious, active guy. Long-term is golden here

[Cat]

Interesting new case study / blog post:

https://igicybersecurity.com/case-studies/financial-vciso-w8e2f-y6b4b?utm_content=169942928&utm_medium=social&utm_source=twitter&hss_channel=tw-509193471

Takeaway for shareholders is a new satisfied, recurring customer...and proving the business model of providing mid-market cybersec services to SMBs. Growth happening...and still at sub 1x revenue ratio

[Cat]

From Grand View Research:

The global cyber security services market size is expected to reach USD 192.70 billion by 2028, registering a CAGR of 10.2% over the forecast period, according to a new report by Grand View Research, Inc.

That's just for cybersec services, which is only one part of IGI's business (i.e. doesn't include Nodeware or other products)

But just the vCISO and pen-testing service offerings here can grow exponentially over next ~5 years

[Cat]

According to this document

https://listingcenter.nasdaq.com/assets/initialguide.pdf

The listing requirement could potentially be 2$ at lowest - but that's only if total market cap is above 50M$.

I could see IMCI continuing to execute and hitting 50M$ / 2$ PPS within 12 months to uplist to NASDAQ within 18. Epic stuff if it happens

[Cat]

Also, not to get all pumpy on here, but the recent Goldman Report literally had this sentence:

In our view, this step is also the precursor to a NASDAQ-uplisting in the next 12-18 months.

NASDAQ listing within 18 months would be absolutely massive for people invested down at these levels. Not saying it will necessarily happen but apparently it's something they're specifically thinking about. Pretty sure the bid requirement, using the lowest standard option, is about 3$, so that'd be pretty bold stuff.

[ChiefZ]

I agree. They can go sideways for a while and then all of sudden take off out of nowhere. I would love to add more but it is so hard to get shares. Oh well...just have to wait for someone to get impatient.

[Cat]

There was just a nice dip to ~16, I got a few more there. Of course volume is low so it's hard to get large amounts - by my math the real float is under 7M shares, if we exclude insiders + >5% holders

But yeah I think the real catalyst will be once they start reporting growth. We know it's coming, because they've been hiring like crazy this year and the sector is hot. It's growth that will turn this from a 0.5 - 1x revenue stock to a 5 - 10x revenue stock practically overnight imo. So far that reason second half of this year will be decisive - can they hit their 9-10M$ revenue estimate? Huge if yes

[ChiefZ]

This is one of the tightest floats I've ever seen. I would like to pick up more if it dips. One big player could send this flying...