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At an average price of .006 (which is probably a bit conservative looking at where most shares were bough/sold) this traded around $250k in capital today.
Crazy.
Yup. This always happens. Ever year or two. The buying a few weeks ago was the start of it. Whoever it is will pump this as high as they can and then do a very quick dump.
Pretty impressive recovery they've made in the past 24 months. From losing over $75k a quarter to almost breaking even this past month. Looks like they'll be profitable for Q4 2020 too.
The financials also reiterate the 5% ownership in LPI. While we still have no idea what that's worth it's nice to see in the financial notes.
Overall, an impressive recovery in a tough time. That said, this isn't a get rich quick stock. If you're looking for the next 10x tomorrow, it's not going to be here. Rather this is one of the few investments you can actually make in the OTC.
You could have easily tripled or more your money on three separate occasions in the past 4 years. If nothing else this stock is the easiest swing play in the OTC.
Thank you very much for the shares. It's rare I'll slap the ask on a penny stock but this one looked too juicy and well setup to pass on. Looking forward for what's to come, even if it takes a year to materialize. I've got patience.
I'm not calling this stock a P&D, I'm calling the price action a P&D. Support vanished today. Also, an important distinction is that I didn't accuse management of pumping the stock, instead assuming this was a coordinated effort by traders in a group.
That, or we have a whale who will continue to buy shares in the next few trading days, following the pattern this stock has had for years now.
If we don't see another boost within the next week I'm leaning towards this being a coordinated pump and dump. Not the worst stock to get stuck in, and if any new bagholders are looking to get out quick I'm happy to pick up the cheapies.
Given we're seeing almost exclusively sells on the bid today this was either driven by one large buyer whom is letting things settle down today, or this was run by a P&D group and there all falling over each other not to be the last one out loll.
Looking forward to seeing what tomorrow brings.
Annual shareholder meeting is happening this week. The general agenda was released in the proxy, but I wonder if something else leaked which is why we're seeing this crazy price action.
Nice to see some movement here, but an upward trend may take some time. Lots of bagholders that thought it was smart to hop in when this was being pumped last time and are underwater waiting to dump their shares.
All the same, this is shaping up nicely.
This is one of the worst straw man arguments I've seen in a while. Ecommerce and marketing are not one in the same, quite the contrary. And yes, maybe the DJIA and S&P are sitting pretty high, but those represent less than .1% of public stocks, and are hand picked as some of the most prolific stocks. While they may historically have been a good representation of the overall health of the stock market, at this point they're pretty far removed from reality.
https://www.multpl.com/s-p-500-pe-ratio/table/by-year
Take a look at the other recent era we saw incredibly high PE ratios.
What is? What exactly is "old news"?
Considering I touched on several different topics you'll need to be a bit more clear in your response.
Do you still believe this company is a bargain at the .0075 you initial bought in at? Or are you just bitter and now think this stock is "trash" because you purchased when the stock was running?
I'll be upfront when I say I'm a bull on this stock when it's under .005 and a bear when it's over a penny (without news) and there's reasons for both of those positions, but without getting into the specifics I wanted to discuss some of the concerns that have been raised and that I share.
...Local Planet. Supposedly UCPA owns 5%, however as another savvy investor brought up, any investments (or ownership interest of value) should be reported on their balance sheet. Also, a fair point that was raised, we know nothing about this entity outside a statement of $16b in revenues. In the investment world companies worth over $1b (in valuation not necessarily revenues) are what we refer to as unicorns when they are privately held. There coined this phrase given how rare they are. I find it hard to believe we have a 5% ownership interest in a company no one had heard of before reading UCPA's filings/statements.
What may be more likely is that Local Planet is an association. Associations often times represent common interest groups such as the Washington Association of Realtors which as it sounds, advocates for realtors located in Washington. Now they could state they represent $100b in revenue....but that revenue isn't their bottom line.
Ergo, unless otherwise PR'ed or updated in the financials I'm taking the 5% ownership interest for what we know it's currently worth, nothing. I'm not holding my breath that UCPA owns 5% of a $16b company because that just doesn't add up. I'd argue this LPI is more likely a type of association or member group and the $16b in revenue is the aggregate of it's members revenue.
LPI isn't even a small part of why I invest in this company. Personally, I invest here because:
1. The financials which have shown substantial growth since 2012 with a moderate hiccup thanks to COVID.
2. Not a share has been diluted in at least 8 years (can't remember exactly how long off hand)
3. The directors and officers are in this with us. There are no preferred shares, they all own common shares, and a healthy percentage over 70%, and they haven't sold a share that I'm aware of.
Now, given the moderate decline in revenues and the financials being slightly less favorable, what's the way forward?
Well, there is a few options. Over the next several years the financials either improve or worsen and the stock price follows suit. Given their success in profitable revenue growth over the past decade I would lean towards the former, but I don't count anything out.
That said, most of us aren't here to drop our money for the next 10 years. As far as near term catalysts. Management announced they were considering share structure changes earlier in the year that they would announce later in the year (don't quote me on the timeline I'm going from memory here). This hasn't come to fruition likely due to COVID impacting their plans, however, what I'm hoping the plan was and still is once things cool down is to do a reverse split (not scary when there isn't associated dilution) in order to uplist. Uplisting to OTCQB would without a doubt bring legitimacy to this company along with a litany of new investors. While I think there is plenty of PR that could help with stock price (i.e. new big name clients, share buyback...), this is what I believe to be the end goal. Lets all be honest, most companies on OTC Pink (or worse) are trash companies that dilute to line the pockets of management. If you've done any research at all, you'll realize UCPA is not at all like this.
OTCQB Requirements
The only requirement they don't currently meet is a share price of .001 which they have achieved in the past, so a reverse split may not even be necessary. Management may either offer a share buyback or buy direct from the market.
Assuming no reverse split I would argue .005 is a reasonable price target if UCPA were to uplist.
Does anyone have any information pertaining to the age of the Board of Director members? This may give us a hint as to when they intend to retire.
Curious what others think however. Again, management announced their intent to change the share structure. If not a reverse split, what do yall think the plan is/was?
If that's your price target you don't seem to have a grasp of fundamentals.
I don't dispute the trend. But trying to manipulate me into doing your leg work is not gonna happen. Especially since I don't feel like pulling a bunch of financial statements and putting them together in a table on my phone.
Cash flow isn't an issue since the have a revolving line of credit to supplement any short term cash flow issues.
I didn't use codewords. Equity, revenue, and net income are written very clearly into the financial statements You can look them up yourself.
All that said, my only concern with the company right now is the impact COVID will have on business. I expect we'll see a couple rough years ahead.
If you're referencing AR as an appropriate metric to value a company you have no idea how to read a financial statement. You should instead be interested in their equity, their revenue, and their profit, none of which are reflected in AR.
-I study financial statements (for company viability) as part of my job.
Agreed, I'm also excited for them to follow through on their game plan!
Good point, we have the restructuring to look forward to as a catalyst.
Even with just a trickle of volume this has moved up from an ask of .0035 to .005 in just a couple months.
Some proper volume and this one explodes north. Float is paper thin.
That's a good point. So many shares outstanding and still the owners haven't sold one. They lock up 80% of those shares. Crazy how confident they are. Well said.
Gotcha, so what you're saying is there's a lot more upside than downside? Couldn't agree more.
Yea, I totally agree, this stock is one of the few exceptions in the penny stock space. Exciting future ahead of us!
Right, just a matter of time before the next one. Strong fundamentals so no worries in the short term. If you have the slightest bit of patience you could have more than 5x'ed your money 3 times in the past 5 years. If you don't consider that strong return then idk what to tell you.
Unlike most of the crap in the OTC this company is busy running an actual business, not spending time putting out fluff "PR's" in order to inflate their stock price to issue shares into.
I don't understand how you can complain about communication when they have a scheduled quarterly newsletter along with quarterly financials.
Sitting on just over 10m shares with no intention of selling below .03.
Thanks for sending that over my man, I'll review later once I get off work. Cheers!
Also, if you have any proof of correspondence with the owners (as in email exchanges) I'd be super excited to see a preview. Shoot me an email if you wouldn't mind: michaelmcl1233@gmail.com
I would greatly appreciate. Cheers!
Hey Matthew,
Thank you very much for the well thought out and detailed response.
Admittedly I personally don't think reducing the outstanding shares is going to act as much of a catalyst given half of the OTC has shares exceeding 100's of millions and that is commonplace (and float is under 300m currently). If they were to announce attempts to uplist, or common share dividends however I'd expect .035+ in a heartbeat.
Outside either of those I expect we'll be stuck in the .003 to .006 range for a while outstanding some unforeseen catalyst.
All that said, I'm super bullish here especially considering the current share price and float. Fundamentals are too strong to be worried, especially for an OTC company that the owners have a huge stake in.
Very positive newsletter considering the market. I'm pretty sure the share structure change is positive, which is why they didn't want it brushed under the rug while everyone panicked over COVID.
I expect they'll announce a small reverse split, along with confirmation they won't dilute the share pool or issue new shares. The reverse split being done to pursue uplisting. Either that, or they'll announce a share buyback.
What other share structure changes would they be talking about? It could be dilution, but why put that off because of COVID?
Me too brotha. Anyone who hates on this stock has no patience. I've been playing this one for years. Buy below .005 and sell above .01.
Rinse and repeat.
My favorite long term swing play because it's got strong fundamentals to prevent it going to 0 like most of the other garbage in the OTC.
And a 20k slap to bring it back down. How does that fit into your narrative ??
They had a meeting for a reason. This one isn't falling to the wayside.
Let's gooooooo! News has gotta be forthcoming soon.
They did mention setting up a Twitter account at some point so time will tell.
I'm here for a while no matter.
I've also had no luck getting in touch with IR or management. I'll keep trying and report back if I hear anything.
Not over concerned with the quite period, though I'm more patient than most OTC investors.
I haven't called, but I'd be interested to hear what they say if you do.
Cheers!
I'd expect we'll hear something either after hours today, or within the next couple days.
I'm not in any particular rush just happy to see things moving along as expected. This should allow them to start filing.
My first reverse split, how exciting!
Float is super tiny though, I'm not sure what their play is here. Maybe this will help get more eyes on this one.