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All I can say is that I'm really glad I got a tip on this company and bought my shares last week.
dh,
Thanks very much for your posts tonight, and in particular for directing me to the podcast. I had no idea that the CEO had the extensive background he has in telecommunications or the complete and evident command he has of all the fields in which the company is involved. This is not a pink sheet company - this is a company that happens to currently trade on the pink sheets. I have never seen a company on the pink sheets that has the strength and potential regarding current and future operations that this one does. This is that rare situation where the joy will not only reside in how much money we will make, but also in observing the steps of the company's development as they happen in conjunction with what very apparently is a well-thought-out plan.
The excerpt below from the November 23 Rob Goldman report found in the board header is why I am most excited about having invested in this company.
THE LOIs HAVE IT
Management clearly desires to increase its reach in fintech to both foster cross-sale opportunities with its downstream partners and direct consumer customers. This planned strategic move dramatically increases gross and operating profitability which in turn positions IQST as a combination of a communications and fintech services provider, thus potentially leading to a valuation that is many times greater than its current market cap.
The Company’s recently entered into an MOU agreement with Payment Virtual Mobile Solutions, LLC (PayVMS) to build a Prepaid Debit Card Service (PDCS). The new PDCS will be constructed under a new corporation named Global Money One, Inc.(www.globalmoneyone.com). iQSTEL will own 75% of Global Money One, Inc. with PayVMS owning the other 25%. Management stated that the PDCS serves as the launchpad for its consumer fintech operations. Given the early anticipated basket of services, we believe the projected $45-$128M in revenue over five years is very achievable. We believe that additional services beyond that should consistently generate 30-40% EBITDA margins, depending upon the services mix. PDCS is expected to enable customers to make purchases in stores and online, withdraw cash at ATMs or receive cash back when using it to make a purchase, recharge prepaid mobile phone service (domestic and international), and send money domestically or internationally. PDCS is expected to also facilitate the deposit of funds into bank accounts,rewards and digital gift cards. In addition, PDCS customers are expected to be able to execute bill payments and remote deposit capture (RDC) by mobile phone.
Separately, IQST and Alternet Systems, Inc. (OTC-ALYI-Spec Buy), an electric vehicle (EV) innovator, announced a letter of intent (LOI) agreement for IQST's Internet of Things (IoT) development team to combine efforts with ALYI's EV engineering and design program to codevelop IoT two-way device communication solutions specific to the EV operating environment. ALYI's first generation EV is an electric motorcycle, designed for, among other applications, utilization within the rideshare (exemplified by Uber and Lyft services) sector in Africa evolving the prevailing robust motorcycle taxi market. IQST subsidiary IoT Labs MX specializes in IoT design and development to include wireless and vehicle telematics space that provide telematics solutions. IoT Lab MX, among other products, has developed the IoT Smart Gas Platform. IoT Labs MX and MODUS plan to work jointly to develop two-way device communication in the Revolt Electric Motorcycles with, among others, the following functions:
• Geolocation
• Battery Management
• Theft and Accident Interfacing with Emergency Services
• Remote Maintenance Management
• Vehicle Body and Component Leasing Management
• Driver and Passenger Personal Mobile Device Interface
• Rideshare System Interface
So 173,295,932 after the offering less the 21,000,000 that were converted into preferred in the filing made yesterday after the bell subsequent to the filing referred to below equals 152,295,932 outstanding, which multiplied times yesterday's closing price of $.27479 yields a market cap of $41,849,399, which is less than one times 2020 sales. That's a pretty cheap valuation for a company listed on any exchange. Of course, then the question is how efficiently and effectively management can use the $4,480,000 in proceeds from the offering, for which I am betting they have a comprehensive plan laid out.
I agree with you in every aspect of what you're saying. I feel as though management has a well-thought out plan for the future which we can't entirely understand, but has many facets from a structural as well as developmental perspective. This is the one in a thousand companies trading on the pink sheets which isn't an absolute POS. Management seems to be intelligent and trustworthy, and trust in them is pretty much all we need to do to make a lot of money here. The business challenge is to augment their existing low-margin, high-volume business with lines of business that can achieve higher margins, and they seem to be doing just that.
If I'm doing the math properly, it means that setting x equal to whatever the outstanding share count is today, x plus the 56 million shares that are going to be offered and issued at $.10 under today's filing less the 21 million shares to be converted into preferred per today's second filing will equal the resultant number of outstanding shares.
What I find most pleasing about today's second filing is that management is sensitive to the dilution that the raise of capital will create, and they are doing something concrete to mitigate its effect. To reiterate, not many companies' management teams in the pink sheets behave in such a way as this that both reassures and benefits the shareholders.
I think your post 17226 from a few months ago makes the most sense of any scenario that I can think of. I hope you don't mind me reposting it, but it was very informative for me and seems to me like the most likely scenario for the company. It is as follows:
"Nasdaq has three tiers, but it looks like we have to get into dollars to be there.
As much as I'd love to see that happen quick, maybe for now iQSTEL needs to explore the OTC world. OTC also has three tiers.
Depending on one place you look or another IQST is either on Pink Sheets or OTCQB with OTCQB being better. The OTCQX tier is the place to be in OTC land, and apparently as good a place as you can be short of a major exchange. The extra requirements to get there surely attract more buyers than the lower tiers.
OTCQX has different levels in itself. From what I can tell the OTC U.S. Tier is the one that appears to be the best chance for IQST to aim to qualify for in this time frame.
Avg Revenue of 6m for last three years - Check
Minimum bid of .25 for 30 days following application - No, but not too far out there
Market Cap of 10M each day of 30 days following application - should be there if minimum bid price qualifies
And some other requirements.
Then, the OTCQX U.S. Premier level is the cream of the crop at OTC but the requirements get tougher, and maybe you are thinking about a major exchange more by then.
Only OTC can say for sure if IQST could get into the OTC U.S. Tier with all requirements, but in the near term this looks to be the place try to go, while still working to get to the major exchange. To do that, though they need to do what they can to meet requirements including getting the share price above .25, and comfortably so that there is little risk of going back below.
If your set on Nasdaq I don't blame you, I am too, but this looks like the step in between that maybe you need to achieve in order to get more attention and buyers, to then get you up to the major exchange. IMO"
How do you feel about today's development? Obviously not too bad if you're continuing to buy.
Excellent analysis as usual, dh. The overriding question is whether the dilution of the shareholders related to the sale of an additional 56 million shares can be overcome by the efficient usage of the $4,480,000 proceeds from their sale, assuming they are all sold. I, as you do, think the answer is yes. It's just a given that management's motivation is suspect in any pink sheet situation, but I truly believe that this is the one company in a thousand that resides on the pink sheets where their motivation is to enrich both the shareholders and themselves by developing a strong business instead of just enriching themselves.
Basically the filing says that the company will sell another 56 million shares at $.10 and realize $4,480,000 from the proceeds after commissions. Obviously I would prefer to have been able to purchase my shares at $.10 through the offering rather than paying $.36 for them on the open market, but that's the way it goes.
The question is how efficiently and effectively the company's management can utilize the proceeds to develop the business, and really all we have at this point is our faith in the caliber of the management team to do that. I have faith in them, or I wouldn't have bought in this week.
I'd be particularly interested on dh's take on my comments, as he seems to have an intricate understanding of the company's long-term plan, which I believe to be much more multi-faceted and strategic than any others of us here are aware.
I found dh's post 17226 to be quite insightful, and would guess that the uplisting he refers to there is where we are headed in the not-too-distant future. That would be a nice intermediate step toward the NASDAQ, and would further establish IQST's credibility among a wider base of investors.
The stock price just keeps on advancing. This quality company is one of the best small biopharmas around, yet very few investors seem to be aware of its existence.
With today's advance, this has almost doubled from the level to where it fell when the CEO and five directors simultaneously resigned. Hopefully the price advance reflects positive things that Michael Amoroso is doing to develop the company. I've held all my shares through the downturn, and have confidence in his background and the company's pipeline.
PDUFA day is about a month away. I don't think we will ever see this trade below $20 again. I'm buying more tomorrow morning.
I really appreciate your insightful posts. They're objective and accurate, and you clearly understand all facets of this company's business as well or better than anyone on this board.
The problem is the exchange on which we are trading. I played penny stocks for years, and the stigma of not trading on a major exchange is mostly well-deserved for penny stocks, as virtually all of them were either POS and/or momo plays. I have NEVER before now seen a company of this quality and growth potential coupled with the caliber of its management team and the high level of its financial reporting trade on this exchange.
Thanks for providing the link! All I can say is whoever can get those shares at $.10 is getting a tremendous bargain, because even if there are then 128 million shares outstanding, using 2020 sales as an enterprise value, which is a bare bones minimum because of the company's growth rate, the intrinsic value should be roughly $.35 per share.
Per my recent post, I feel as though anything less than $.62 is a screaming buy, and that's at the very minimum valuation. Someone else posted earlier that they thought 56 million common shares would be offered soon, but I haven't seen anything to indicate that. Even if they were to be offered, the absolute minimum value per share would still be $.35 under that scenario.
Got another 1,000 at $.2918. More money will be available tomorrow!
The way I see it, the EV is a minimum of one times sales, which is $44.8 million. That is an incredibly low numerator for the following calculation considering their growth rate. At the 72,754,000 shares outstanding after the recent preferred conversion, that would be about $.62 per share. Even though I bought in yesterday at $.36, I actually hope it continues to go down, because that would give me more time to raise money to buy at a very discounted rate to what the share price should be.
After I looked at your comparison I looked at ALPP's 10-Q. IQST's strength and stability when comparing their financial statements is so far superior to ALPP's that it isn't even close! I can't believe they are trading for $2.40 and we are trading for $.36. There is a tremendous disconnect there. I'm even more glad now that I bought in here today! There is no question that if they can somehow trade at $2.40 we should be somewhere above that.
That's a great overview. Being a newbie here, I appreciate your information and insights.
Thanks very much - I'll be here for the long, profitable run.
Yours may turn out to be the most profitable tip I've ever received. I invested in many penny stocks some years ago and lost badly, but this isn't what people think of as a penny stock - it's a low-priced stock. This is a quality company that is still trading on this exchange only because of its low price. The quality of its financial reporting in its 10-Q and 10-K reports is extremely impressive.
What helped convince me to buy was their 10-K. Its quality is very similar to that of the company I work for, which is a $700 million company traded on the NYSE. Their CPA may be a small regional firm, but the document is of very high quality, and the disclosure is very transparent and thorough.
This is one of the biggest no-brainers in the history of the stock market. A poster on another board clued me in to it today, and I couldn't believe what I was seeing. I'm in at $.36 with a nice stake. Thank God I became aware of it now before it really takes off - I wish I had known about it at $.07!
That's fantastic! Congratulations on your foresight in buying in early - those are the kind of returns I hope to replicate in ACUIF. I set up a board for it if you're interested.
I saw it in Charlie Giancarlo's eyes in a video he made that I saw on You Tube. He's brilliant and a visionary with complete command of his field. Even though I know little technically about this discipline, I think I'm perceptive enough to see that he knows where the future of this industry is going, and that's where the money is to be made if he can develop the company in that direction.
I'd say in the next seven to nine years you and they will see some nice returns on those.
I'm 65 and in forever. I may not see this company become everything it is going to be, but my kids will be happy when they inherit my IRAs if they hold the stocks that are in them as I've suggested that they do.
To comment on today's news, in the words of Chicago - "Only the beginning. Only just the start."
This company is going to be so big if it doesn't get bought out first - mark my words.
I can't believe no one here is as excited about this company as I am! You don't need much of a crystal ball to see how big this company will become in five years if it doesn't get bought out first.
I'm in with a decent stake at $10.60 this morning. I may have overpaid a little right now, but with the government increasingly supporting cleaner energy, Total as a 25% shareholder, and an alliance with BP, I feel as though as I'm seeing a very bright future here, and overpaying a little was worth it to me to establish a position.
I'm in this morning with a decent position. I like the prospects of this company. I don't think an executive of Dolca Thomas's caliber and background would sign up here if she didn't see something very positive in this company's future. I'm betting on her judgement.
It does seem odd to me. I put another $1,200 to work here this morning. I just have to believe that someone of the new CEO's caliber knows far more than I do, and he came here having given up an extremely high-level role at SGK to so. I'm trusting his judgement here.
I have finally come to understand that the secret to making money in investing is not in understanding the present, but in seeing the future. I couldn't see the future in Facebook and Netflix when they were cheap, and paid the price for my shortsightedness. I will not repeat that mistake again, because that would indicate that I am stupid rather than ignorant, and I am far from stupid. I am taking a strong position here on Monday morning.
The stock price is hanging in there nicely - I think as we get closer to the PDUFA date of April 29 the upward price movement will accelerate, as they seem highly likely to get approval and there seems to be a good plan to move it into the significant addressable market, which also seems receptive.
I think so, but they're volatile (look at ABEO as an example, although I still have confidence in their long-term prospects). If management is sound and stable and they have what appears to be a good pipeline that addresses significant unmet needs, I think they have the potential to be very rewarding. SIOX got punished for the snag in the manufacturing process development by Oxford, but I think it was unduly so and temporary, and I think its valuation is considerably lower than what it should be at this point, as $143.9 million seems to be much lower than comparable companies with similar prospects.
This could have good long-term potential, but it may be overvalued at this point.