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In the otc world, you would always assume and consider the authorize shares not the OS as OS will continue to rise due to note conversions.
Target 1$? At Outstanding shares of 14 billion means 14$ billion valuation. A lot of amateur in the market nowadays whoe doesnt know what valuation means. ??
Valuation
At least 4$ x 117 million shares = 468 million$
Revenue is projecting at 60 million$ 2021
Revenue multiple of 10 = 600 million market cap valuation
So i think 4$ is a fair valuation in my opinion if we are going to apply revenue multiple of 10
A lot companies with slower growth have higher multiple revenue of more than 10
Cannot be overnight. Even at OTC you need authorization first with the member of the board or notification to increase AS.
Notes paid off likely or near completion.
From 23 million shares to 115 million, an additional of 92 million shares with strong support from 2-3 cents, wise investor knows there is a good value proposition here since:
Company is severely undervalued with market cap of 5 million compare to its annual revenue growth of 42% and annual revenue of 40 million$.
Important numbers
Authorize shares: 300 million
OS currently: 115 million
Market cap: 5 million. Severely undervalued.
Annual revenue: 40 million
Revenue growth: 42%
Debt /notes: around 2.3-2.5 million: 92 million shares has been added since October so approximately most notes has been paid off now or very little remaining as stock price has been stable between .02-.03.
Not a pump but a reminder.
Third Quarter 2019 Results
Revenue of $10,986,295 increased 42% compared to the same period in 2018.
Operating Income of $1,852,756 increased 53% compared to $1,211,107 in the same period in 2018.
Strong support at .03. Just like TEUM at .40 it just doubled after two weeks. Same chart pattern here.
Despite continued dilution which i think is near completion, the stock has a strong support in 2-3 cents for two reason
It is severely undervalued and has a very strong upside.
At least .50 cents valuation here which would equate to 3.5 million market cap.
A comparison:
SHM_ which run from .02 cents to .95 cents and currently at .10 cents with market cap of 38 million. No or very little revenue. Authorize shares is almost 1 billion and outstanding shares almost 400 million.
Compare to KWBT:
.028 cents
Market cap 3 million
42% annual revenue growth
40 million revenue
30 million assets
106 million OS
300 million AS
Convertible notes almost paid off or near completion
SEVERELY undervalued.
If total debt or notes is 2.3 million$:
83 million shares has been added since october. Assuming average conversion selling price at .025 this will equate to almost 2.1 million$ payment. I think i think this is really super close and it will run from here. Minimum this year .50 cents.
Lot of notes being paid off. Strong support mid .02+. Approximately 2 million$ has been paid off conversion average selling price .025. Likely 105 million outstanding now.
I trade mostly in upper boards but check on otc markets for oversold penny stock and i strongly believe this one should trade higher than at least .40 cents which is equivalent to its annual revenue and assuming 0% growth but company is growing at 42% rate so i am not factoring that.
Numbers look fair enough to compare to nasdaq stocks and this will tell you why this is severely undervalued:
Revenue: 40 million
Profit margin: -.03%
Operating margin: +8%
Revenue growth: 42%
Total cash: 2 million
Total debt: 2.5
Market cap: 3 million. Insane!
Ive never seen this in penny stock.
Note conversion near completion IMO.
Company’s total note debt is close to 2 million $. Since october, from 23 million shares to almost 100 million shares, 77 million shares added. Assuming conversion selling price of .025 thats almost 2 million$.
I would say that notes is almost paid off or very near in paying off. That is just my estimate.
Will be a big buyer it it goes down below .01 and authorize shares will remain the same.
The only reason INND dropped to that level is because authorize shares has been increased to billions
All otc company is not making money. If you want real money, go to big boards
The good thing about KWBT, they are growing at 42% growth. At this point, they are expanding and marketing so a lot of expenses
You seldom see penny stock making 40 million in revenue hence KWBT is a gem
Authorize shares is 300 million. Even if you max it out, market cap would only be equivalent to 3 million$ just in case it drops to .01 cent.
Total debt is 2 million.
52 million shares has been added since october
Assuming conversion sell price of .0220
Thats equivalent 1.1 million$ +
Getting close.
As i said before, being conservative, i dont pay attention to the current outstanding shares, i pay attention to authorize shares with penny stock as these companies tend to increase outstanding shares through convertible notes.
So KWBT has 300 million shares authorize. Thats the maximum. Worst in case, if all has been issued and outstanding shares goes up to 300 million, the market cap of the company if pps goes to .01 cent
This would equate to 3 million market cap so KWBT will be grossly undervalued.
I think that note conversion is not complete yet but almost 1 million$ plus has been paid of if the average selling price is .025.
All penny stocks heavily relied on convertible notes. The good news is, company is growing at 42% rate. Just like other NYSE, nasdaq that are unprofitable. Unlike other penny without revenue, KWBT at .02 cents offer a greater upside than downside especially when convertible notes is near completion just my own opinion.
Strong support so far at .02
I think we are getting close to paying down the notes.
45 million added so far
If sold at average price of .025=
Thats equivalent to 1.1 million$ payment.
My estimate, if average sell price of convertible notes at .0275, 32 million shares added, close to 900,000$ has been paid off. I think we are getting nearer to paying off the convertible notes. KWBT remain undervalued at this price imo but downward pressure may continue.
Dumb dumb dumb
This is one otc stock to watch for 2020
Almost similar revenue with ALPP. The only difference is the authorize shares is almost equal to outstanding shares so ill be conservative with KWBT
Assuming worst case it will max out to 300 million which its not likely going to happen but just being too conservative, OS balloon to 300 million, if PPS reach .01, that would equate to 3 million market cap. Thats insane valuation compare to 40 million revenue with 42% growth
Ill start adding more at .01 below i think it will reach there before it goes up to. .05 to .10
With penny stock, you have to consider worst case scenario as no one knows when the dilution will totally stop unless you can tell me exactly.
You dont fully understand what i really mean. My point is even if you max it out, the company remains undervalued so therefore is a strong buy. You are so amateur.
And it is growing at 42% rate. I wont go for Outstanding shares for valuation as it has tendency to go higher so i would go for authorize shares of 300 million, worst case, valuation would be
At .02= 6 million market cap
At .01= 3 million market cap
So i would say severely undervalued among otc ive seen so far
400,000 shares bid at .06+ haha.
Wow i didn’t even realized the percentage gains with net income between 2016 and 2018 that tells me we have good management team here as they know how to control the cost unlike other penny companies out-there with no income, too much dilution and a scam
This company is acting like she is listed in a nasdaq or NYSE.
Get a position for long term. Forget the volume at this time. Once the volume spikes, it may be too late for some.
Summary
Gross income 9.6 million$
Net income 2.5 million$
Outstanding shares 52 million$
Earning per share: +.048
Revenue Projected to increase in 2019
No convertible notes. No dilution. Company already stated non dilutive share structure.
?? market cap 4 million only?its obviously a hidden gem.
Wow, positive EPS of .04 cents
The good news on this one is liability reduction of 2 million and they expect further reduction this year. That means their legal team is good. As i said before with tax issues, IRS is always willing to settle with company at a reduce rate, mostly removing all the interest payment. This tells me that this issue should be a minimal concern for now
The company is moving positively this year.
I cant find any pink sheet or OTC with low share structure, non dilutive, makes about close to 10 million$, positive earning per share and with projected growth revenue rate. Its obviously a growth stock.
Expecting another news again for more contract signing with cliebts and corporate news.
If other recent runner went ballistic with crazy market cap, this one should go crazier with its real numbers.
This is just update for news to come
Feb 28 q report
March 2018 year end report
New contract client signing news
Resolution of tax issues news
All positive. No dilution.