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The QB is obviously first. They've got to walk before they can run. Just like a child that is growing, this company, with the proper effort from management, which I believe they are capable of giving, will develop well, but it will be an extended process before it becomes an adult.
The company's debt/capital structure has improved, albeit at the cost of increasing shares. As long as the business can establish and generate an increasing stream of profitability to feed the new mouths that have arisen, I think their creation has largely been advisable.
The business was still weak at the core through December 31. Hopefully it is strengthening now and will strengthen further, and that is what I am hopeful today's letter will tell us.
It depends on what the $60 million of revenue generates in margin to cover the SG&A and hopefully bring the company into profitability.
As both you and I have pointed out in the past, selling minutes at low margin isn't covering the SG&A. I'm looking for today's letter to tell us the plans to generate revenue that will be able to do so and result in increasing profit.
From my understanding, even though I have virtually no knowledge of the business, the termination cost is the cost associated with each minute of revenue, and they were higher in the areas into which they expanded in 2020. I'm sure strategically they would expect to be able to lower those costs over time, or it wouldn't make much sense to go to the trouble of obtaining the revenue, unless some other benefit could be expected from attracting the incremental customer.
My opinion of it is that it's a very good question, and from briefly reviewing both 10-Ks, it seems that termination costs were relatively higher in 2020 due to strategic efforts to expand into new markets. Beyond that, it's something that management would have to address, and I'm sure they would have a ready answer as to why they expect termination costs to improve in 2021 as they state in the MD&A.
The value of tomorrow's management update is in how management will explain how it plans to turn this into a profitable enterprise - period.
That's one of the most complex sets of financial statements that I've ever seen in my life. The auditor certainly did earn its fees on this engagement.
I don't see $3 next week - I'd be happy if it tested the $2.00 mark it hit back in February.
That's hard to say. Revenue from the estimate that they gave of $45 to $128 million over five years seems as though it would have been included in the $60.5 million 2021 forecast, but I'm not certain about that.
It's flat with expectations, but it would be a 35% increase year-over-year, which is very favorable even in comparison with high-growth companies. I think it will be higher, as that seems to be a base case that they know is achievable even without any additional contracts or customers being attained.
Money,
I agree, and appreciate your efforts with regard to their communications. I also agree that actions matter more than words, and hopefully tomorrow's letter will relegate the "well over" vs. "more than" debate to relative irrelevancy.
No, it would be the IR department. If the company wants to trade like anything other than a pink sheet stock, it needs to put out press releases using language that is consistent with something other than a pink sheet stock. "Well over" is not two percent in excess of previously-disclosed numbers, and smacks of a pink sheet company's efforts to pump itself. That is not what this company is, and its communications efforts need to be consistent with its intrinsic nature.
I don't think it meets anyone's expectations of well over 44 million. The IR department has to get better at what they do.
It begins with tomorrow's long-awaited 10-K filing, and hopefully we'll go upward from there as management implements its plan that will be revealed on Friday.
It's the calm before the storm!
I also hope they grow out of it - the IR mindset needs to be more that of a company that doesn't trade on the pink sheets. On the good side, the $60.5 million forecast represents a 35% growth rate, which is higher than it would have been had it really been "well over".
Good job! Looking forward to the shareholder letter!
I certainly am hoping that that is the case. A good result from the trial with the Fortune 500 company would certainly help that to happen.
They're filing the 10-K on Thursday, and want to wait until it has been filed to issue a shareholder's letter the next day.
Peter,
There's that "well over" in the news again. I'll be interested to see what their definition of "well over" is. If it is a few million, I think that could kick the stock price up.
We'll be looking forward to it!
It would not surprise me - I'm not sure if it would concern me.
I'm not sure what you mean by seeing it on the OTC, but it should be on the SEC's website by Thursday at the close of business.
I'm hoping it brings new buying to the company!
Inferring from a conversation on the Ambassadors site, the 10-K will be filed on Thursday.
I don't see it going that low - I think now would be the time.
Thanks for your contributions, Knux. I've found them to be among the most informative and valuable on this board, and I'll miss them. Hopefully IQSTEL will make us all a lot of money over the next few years.
That's no surprise - I find it hard to believe that anyone could think that this company's technology is worth only $1.66 per share in excess of the cash on the books as the current share price implies. She's more than intelligent enough to know that it's very undervalued at this level.
It's down the road. They have to get the price over $2.00 consistently, which will only happen after they make significant acquisitions, sign significant contracts, and/or show solidly improving results, which will hopefully start with the first quarter's 10-Q.
Peter,
Here's the conversation excerpted from the Ambassadors' site. My interpretation is that it will be filed "very soon".
Ambassador:
I thought iQSTEL had already applied for QB? They mentioned something to that effect recently.. maybe iQSTEL could update/clarify that?
iQSTEL:
We need to apply again now that we are debt free. QB must have all convertibles retired to qualify. ??
Ambassador:
Roger! I’m guessing that application is in the works then, or in? ??
iQSTEL:
Yes, very soon.
To paraphrase a conversation I just read on the Ambassadors board, the company must reapply for listing on the OTCQB, as one of the requirements to be listed there is that all convertible debt be retired. Now that that has been done, they can reapply, which they said they would be doing very soon.
There is no such thing as a full SEC audit. An audit is an audit.
The best indicator of where this is headed is the two executives who joined the firm last week. They seem intelligent and experienced, and have invested their careers here. I'm guessing their evaluation of the company's potential is accurate.
I think it all depends on the magnitude of the outcome of the field test with the Fortune 500 company. If that results in a significant purchase commitment, I think it could go to two bucks and beyond.
After 42 years here, I can pahk the cah in Hahvahd squayh if I try to fake it hard enough.
I haven't picked up the Boston accent, but if you were to hear me tawk about getting a cup of cawfee, you'd know where I'm originally from.
Capt,
I grew up a Morristown Colonial, but moved to the Boston area when I was 24 and have been here since. I keep my screen name because you can take the boy out of Jersey, but you can never take the Jersey out of the boy.
No problem, T. Everyone on this board has their knowledge to contribute. I knew nothing about technical trading until I came here!