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INTK posted a tremendous amount of good news from the end of December to the middle of February (see my other posts for recaps). As a result, the share price skyrocketed, from $0.008/share on December 20, 2021 to $0.043/share on February 17, 2022, a staggering 403.75% gain in less than two months. Was the increase warranted? In my opinion yes.
During this two month period the company announced numerous deals that have the potential to generate substantial revenue, which I've summarized below.
Energy Protect: Potential annual revenue of $64 million+
Railroad Tank Car Industry: Total revenue of $325.5 million+ (annual revenue unknown)
Petrochemical Tank Farm: Potential revenue of $39.38 million+ (annual revenue unknown)
These are deals that, according to the company, should start generating revenue in FY2022. Note that I excluded several items like TalkingPaint, the company's oil spill neutralization product, etc. These products have potential, but at this point there are no deals in place so I'm considering their 2022 potential revenue to be $0.
Looking at just the three revenue streams above, let's assume the railroad tank car potential annual revenue is 1/10 of $325.5 million, or $32.5 million, and the petrochemical tank farm potential annual revenue is also 1/10 of the $39.38 million, or $3.938 million. That gives us total potential 2022 annual revenue of $100.438 million. Let's also assume that INTK once again is over-promising and will under-deliver on its revenue figures. I'll take this into account by reducing their 2022 potential revenue estimates by 60%, which still leaves me with $40.175 million in potential annual revenue for 2022.
Using these figures let's say their low-end estimates for 2022 are $40.175 million and the high-end is $100.438 million. Stop and think about that for a minute. INTK had revenue of $229,758 in 2020, and we're talking about $40.175 million in revenue being the low estimate for 2022. That's an increase of over 17,000%!
Since mid-February we've seen the stock price gradually decline. Why? I think the simple answer is that there hasn't been nearly the amount of newsworthy press releases or tweets as there were during the two-month period referenced above, and there have been some missteps by the company the past four weeks.
On February 14, 2022 the company issued a press release regarding the railroad tank car deal. The press release included the following, "Additional details on the new partner will be disclosed in an upcoming joint press release." Nearly 4 weeks later, and no joint press release.
On February 25, 2022 the company teased shareholders when it tweeted a "major shareholder press release" was schedule for 2/28/2022. Well, the press release was a major disappointment, and was basically just a summary of all their tweets, conference calls, and press releases that had occurred in the past 30-45 days. I don't think there was any new information in that press release, and in my opinion that was an epic fail on the part of the company. Don't announce a major press release unless you have something new, and significant, to provide to shareholders.
On March 1, 2022 the company sent a confusing tweet about partnering with Kolorgen Ltd to manufacture EPX-H20 in Turkey. Somehow this is supposed to generate $10 million - $15 million in annual revenue "starting now". This was another fail by INTK. There is no logical relationship between someone manufacturing your product, and revenue. Did the partnership with Kolorgen include a deal to us EPX-H20 on their equipment? On equipment of their customers? How exactly is this deal generating revenue? This is the type of press release the stock bashers will point to and say, "This is a typical INTK B.S. press release" and quite frankly I don't blame them because it doesn't make sense.
Note to INTK, your shareholders want details on your deals (How much product has the client committed to ordering? When will the orders start coming in? Will the orders be monthly, quarterly, annually? How much time will there be between the deal being signed, and the first shipment of INTK's product? Does INTK have the manufacturing capability to meet the increased demand for its products, Etc.) The more transparent you are, and more details you provide, the less fuel you provide to the stock bashers, and the more confident your shareholders, and potential investors will be.
On March 8, 2022 the company hosted a webinar with an expert panel from the UK. The webinar was touted as an opportunity to learn about the size of the UK market, INTK's UK positioning, and learn which companies they might be penetrating. I listened to the webinar and I don't believe any of these items were addressed. The webinar was essentially a discussion on how rising energy costs will lead to increased demand for INTK products. The discussion was all over the place and didn't really focus on INTK, INTK's products, or provide us with any additional information on how things were progressing in the EU, Italy or UK for INTK. Yet another dud for INTK.
But then on March 8, 2022 we also got a tweet about Royal Caribbean and another potential revenue stream. It says, "Once the paperwork process is completed...all ships will begin adopting it. 61 ships. Project 9 million revenue over 3 years." Clear as mud. Once the paperwork is completed all ships will begin adopting what? Which product are they using? What is it being used on (i.e. the entire exterior of the ship, certain parts of the interior)? When will orders start? 61 ships seems like a lot. Is it $9 million in revenue per year, or $9 million total ($3 million per year)?
And finally on March 9, 2022 we were back to completely vague and nonsensical tweets. "Our oil/gas salesman, hired Monday...In Houston now meeting his Rolodex & closing deals." Riiight. So someone you hired two days ago is already closing deals with companies in his rolodex? That's questionable.
At the end of the day the company is going to have to prove to its shareholders, potential investors, and the market in general, that it can make good on all its promises. This starts with:
1) Staying current, and submitting its financials on time. The company's 2021 annual report is due to OTC no later than 90 days after the end of the fiscal year, so we should have full year 2021 reports by the end of March 2022. Quarterly reports are due no later than 45 days after the end of the quarter, so we should have the 2022 Q1 report by the middle of May 2022.
2) Uplisting to a more senior OTC exchange. The company has been touting this for years. It's about time they actually do it.
3) Providing details and clarity on its sales, and deals.
I'm long INTK and I believe it will make shareholders a lot of money in the next 12-24 months. My advice to everyone is to be patient. The sales to the EU and Italy will pick up in the next few months. Remember, the product can only be applied to the exterior of buildings when it's consistently above a certain temperature, otherwise it will dry white vs. clear. As we move into the Spring we should see some nice sized orders coming in, which will drive the share price higher. Take a deep breath, ignore the doubters, and buy the dips! Good luck to all the longs.
All the optimism not that long ago. A RS will never achieve moving to another exchange . The share price has to be at $4.00 per share with 2 years prior of audited financials . This means that a split would simply collapse the stock and make more shares available for Stu’s ATM.
Does anyone see this post ? If you can please reply .
Remember this????
Reverse Split
Stuart reiterated INTK would not initiate a reverse split while the stock is listed on the OTC markets which includes OTC Pink, OTCQB, or OTCQX. However, if INTK is trying to uplist to the NYSE and needs to meet the minimum share price requirement, which is currently $4.00 per share, a reverse split is likely, but it will be a minimum of two years down the road. Why two years? Because a company must demonstrate it has annual adjusted pre-tax income of $2 million or more for two consecutive fiscal years before it can be uplisted to the NYSE or NASDAQ. In my opinion this stock has a tremendous amount of upside in the next two years, and it's premature for shareholders to be worrying about a reverse split.
Share Buyback
Stuart mentioned a share buyback as one of the tools INTK has in its arsenal to address the number of shares it has outstanding. Let's explore that a bit.
Let's start with two different assumptions for 2022; 1) INTK reaches $50 million in revenue or 2) INTK reaches $75 million in revenue
Revenue $50,000,000 | $75,000,000
COGS $(12,500,000) | $(18,750,000)
Gross Profit $37,500,000 | $56,250,000
Looking at INTKs financial disclosures for 2019-2020 I see their cost of goods sold (COGS) is, on average, around 25%. I used this figure in my calculations above to determine the gross profit.
Liabilities
Professional/Consulting $(1,647,100) | $(2,470,650)
Payroll Expenses $(1,500,000) | $(1,500,000)
General & Admin. $(2,586,200) | $(3,879,300)
Sales and Marketing $(1,500,000) | $(2,000,000)
Total Expenses $(7,233,300) | $(9,849,950)
I made some fairly outrageous assumptions on the liabilities.
Professional/Consulting: I multiplied the expenses found on the 2020 financial disclosure by 50 and 75 for the 2 scenarios respectively.
Payroll Expenses: I assume INTK will start paying its employees. I plugged in 10 employees with average salaries and expenses of $150,000 per employee.
General & Admin.: I multiplied the expenses found on the 2020 financial disclosure by 50 and 75 for the 2 scenarios respectively.
Sales and Marketing: INTK entered into a multi-million dollar agreement with the marketing company so let's call it $1.5 million if revenue reaches $50 million, and I threw in a $500,000 kicker if revenue reaches $75 million.
Gross Profit $37,500,000 | $56,250,000
Total Expenses $(7,233,300) | $(9,849,950)
Net Income $30,266,700 | $46,400,050
So, for the purposes of this exercise, let's assume net income is equal to net cash flow (FYI they're usually different due to depreciation, amortization, etc.). At $50 million in revenue I'm estimating INTK ends up with just over $30 million in cash at the end of the year. At $75 million in revenue I'm estimating INTK ends up with $46.5 million in cash at the end of the year.
INTK has roughly 2.9 billion shares outstanding. Using a share price of $0.019 that gives the company a market cap of around $55.1 million.
Here are the number of shares, and associated cost to purchase those shares, for various quantities at a share price of $0.019.
SHARES | COST
1,000,000 | $19,000
10,000,000 | $190,000
100,000,000 | $1,900,000
500,000,000 | $9,500,000
1,000,000,000 | $19,000,000
Buying 100 million shares might seem like a lot, but in reality it barely moves the needle. And keep in mind, the company is going to add several hundred million shares to its outstanding share count as a result of the previously announced dividend, and with the $1 million in capital it plans to raise, so the share count will likely be closer to 3.3 billion when it's all said and done. To have any meaningful impact, INTK would need to purchase a minimum of 500 million shares which, for this example, would cost $9.5 million, but really we'd need them to purchase a billion plus shares.
If INTK ends 2022 with between $30 million and $46.4 million in cash, is it reasonable to think they'd use $9.5 million to buyback shares? Probably not, however if, by the end of 2023, we're projecting the company will have $60 million to $92 million in cash on hand, I don't think it's unreasonable at all to expect the company to buyback a few hundred million shares over the course of the next few years. Could they even buyback a billion shares? Maybe. It all depends on their expansion plans, the cost of R&D to add to their pipeline of products, increasing payroll expenses, etc.
In general, buybacks are viewed as a positive by investors. Buybacks increase the companies earnings per share (since there's fewer shares outstanding), thereby decreasing the companies price-to-earnings (P/E) ratio (current share price divided by earnings per share). If a company is buying back shares it is also usually a signal to investors that management believes it will continue to generate sufficient revenue in the future to fund any expansion, additional R&D, etc.
Uplisting
I suspect the first goal for INTK will be to uplist from OTC Pink to OTCQX. OTCQX is the top tier of the three OTC markets. Companies that trade on OTCQX must meet high financial standards, be current in their disclosures, and have a sponsorship from a third party advisor. Companies listed here report to a U.S. regulator; either the SEC or the FDIC, and are subject to SEC regulations. Quite a few blue chip stocks from Europe, Canada and South America trade on this platform. Moving to OTCQX is an important first step in the uplisting process as it will expose INTK to a broader investor pool. OTCQX stocks are available through all brokers, whereas some brokers will not allow investors to trade stocks on OTC Pink.
Stuart has indicated they'll target uplisting to the NYSE some time in 2023. In my opinion that is overly optimistic, but let's assume that's correct. To uplist to the NYSE a stock must have a minimum share price of $4.00 per share. Is there any way that INTK gets to $4.00 per share in 2 years on its own (i.e. without a reverse split)?
Let's assume the company has 3.3 billion shares outstanding after issuing the all stock dividend and issuing shares to raise capital.
Let's also assume the following:
- The company has revenue of $50 million (net income of $30 million) in 2022
- The company has revenue of $100 million (net income of $62 million) in 2023
- The company projects revenue of $125 million in 2024
- The company has uplisted to OTCQX by the end of 2022
- The company buys back 1 billion shares over the course of two years (2022 and 2023).
In this example, at the end of 2023 INTK would have 2.3 billion shares outstanding. With projected 2023 net income of $62 million, the earnings per share would be roughly $0.028.
Let's use the P/E ratio as a means of determining what the share price might be. A P/E ratio under 20 typically indicates a company is a buy. If we give INTK a P/E ratio of 15 that would give us a stock price of $0.42 per share ($0.42 divided by $0.028 = 15 (P/E)).
On the flip side, a share price of $0.42 would give INTK a market cap of $966 million, which is 7.7x 2024 projected revenue, which is on the high side.
Even so, at best we get to a share price of between $0.40 and $0.50 by the end of 2023, and if we want to be more conservative maybe we cut that in half to between $0.20 and $0.25.
So, would a reverse split be necessary to get to $4 per share? Absolutely. At $0.20 per share you'd be looking at a minimum of a 1 for 20 reverse split. At $0.25 per share you'd be looking at a minimum of a 1 for 16 reverse split.
Is there a ton of potential upside between now and whenever the company uplists to the NYSE? In my opinion yes. If the company hits its revenue projections, and if the company uplists to OTCQX by the end of 2022 (I know, those are big if's, but I'm an optimist) then we could see the share price appreciate considerably by the middle/end of 2023. There may be some bumps along the way, after all, we're talking about a company that typically has revenue of a few hundred thousand dollars per year jumping up to close to a hundred million a year, but I will gladly accumulate shares at these levels and worry about a reverse split/uplisting to NYSE in 12-18 months.
Looking back not too long ago , quarter after quarter he was saying $ 4 million then $7 million . We all knew he was lying . Dubai .. he’s an idiot
That’s what we who are long term holders expect to see.. a dissolve
There will NEVER be audited financials. Hence the stock will only rise during periods of heavy news and promotion. The problem with that approach is that there’s nothing left to talk about .
So 2-3 year old news could be regurgitated , which is usually the case with Intk.
Everyone is on to the unprovable chatter .. therefore a reverse will only drive a stake through what’s left and Intk will dissolve , only to pop back up somewhere else in the world under a different name..
Shit on a shingle .
Military for chipped beef .
Match stick man
Flim flam man
An office in Dubai
A factory in Germany
15,000 rail cars waiting for the coating.
Eagle roofing
Carnival cruise lines
Turkish textile mills
Mexican refinery tanks
European energy saving contracts
Digital marketing snd new web site
New sales team
New CEO
Lowes
I mean seriously
We’ve been hosed
He should run to replace Biden
Didn’t Stu say “ read my lips no new taxes?”
I mean no RS?
Should have sold a year ago at .054
Now at .0000000000000000000000000000000000000000000000000000000007
RS all you want doper.
The holes too deep you wanker.
The reason there’s no audited financials is because there’s no sales .
It’s all a ruse .
He’s painted himself in a corner with these announcements of all these millions in sales . Now he can never file financials because it will expose his lies about income .
Exactly . Why hasn’t the SEC jailed him?
Oh yeah he paid them off in stock too
I’ve seen a few. You are correct .
It will destroy the stock and the shareholder value .
I was told by someone in the business that a reverse is not cheap to perform .
He really has no money despite what he says his sales are. He will be hard pressed to even afford tge associated legal fees unless he again pays them in stock like he does everyone else.
Example Digital Marketing
Where’s Chinese rider ?
Did the jab take him out ?
Myocarditis ?
?? Trend Analysis
INTK appears to be consolidating within a longer term downtrend. Shares are presently below the 200-day moving average, which is falling along with the 10-day moving average. However, the Average Directional Index, or ADX, is below 20, indicating that shares have exhibited sideways movement recently. Comparative Relative Strength analysis shows that this issue is lagging the S&P 500.
Where’s Chinese rider?
Is he Dylan mulvaney ?
.000000000000000000000000000000000000000000000000000000007
Please just one more pump so I can dump
Lead x was discovered in the Pfizer jab
.000000000000000000000008
There’s nothing remotely humorous about fraud.
.00000000000000000008
In search of new suckers in anticipation of the annual April pump and dump
He’ll be some cell mates “tasty bitch”
You can’t deceive this many people without a historic bitch slap .
Karmas a real bitch
So if you bought 10 million shares at .001 and sold it at .003 you would make $20,000.00
So who did that exactly ?
No one ..
No one bought at .001 and sold at .003 so that makes no sense
Dear lord,please just one more pump and I promise I’ll sell out at a break even. No more dillusions of grandure.
Not every stock goes up if you hold it long enough .. lessons learned .. investing in fraud never ends well.
Isn’t Stu in Ukraine ?
Or fashionable shiny object Biden economics
81 million votes . What’s next an office in China or a manufacturing plant in Germany ? Oh right they have no power !
This law isn’t aimed at his type of disinformation unfortunately .
This law pertains to covering up
The mass depopulation being pushed by the WHO by saying it’s a bioweapon from wuhan , only topped in toxicity by the Moderna and Pfiser bioweapon injections .
In Saudi they still chop off peoples hands for stealing .
It’s time to “ chop and shop”
Down in the local square is where it takes place. It draws quite a crowd.
If stu has one hand under tge table at his next pod cast we will know what happened
More likely digital marketing selling their shares . They see no future in holding it. It’s going to zero
It’s not boosting the share price ??!!??
90 million shares and its at .000000000000000009??
That’s fine but it’s not Intk !!
Free fall .054 March 22 not more than 4 Green Day’s since then. Nose dive
The big lie .
Why doesn’t he just pay it with all his big profits???
.00000000000000000000000001
.0000000000000000000000000000001
You would think he would have paid those off by now with all those huge quarterly increases in income .
Most likely simply just more lies
Where’s Chinese Rider?
Tropical trader or whatever it’s called is a pretty good indicator that Stu is tropical trader and he’s somewhere tropical the lie has run its course. It’s all been an elaborate , highly fabricated lie. Nothing has ever made sense. No proof of anything . Wow .. what a ride. Not worth the price of admittance by any means but a first hand witness to corporate fraud .
He’s collapsing the company. He will then do an absurdly high reverse like 100 to 1, which will give him more stocks to use for his own equity then run it again to zero .
The big lie.
Tropical trader is Stu writing from his new tropical home .
Headed towards zero stick price
The SEC can’t keep up with all the fraud. Another failed government agency .