Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
That's right, and if /when some of these divisions stand on their own I think a lot of people may be surprised, despite the company's early hints at what they are working on.
They need to build that credibility. You might say nothing that some impressive EV sales figures based over varied geographic sales locations might not cure. I tend to think even a big hit in one product area could bring more investor interest in all the products. Maybe it's EVOSS, maybe IoT, who knows but they apparently need some evidence that their technology division is valid. In that sense, I think they will be better off without a spin-off in the idea of a rising tide lifts all boats.
Meanwhile, I think that there should be no question that this is a rapidly growing small telecom in its own right. Some solid, sustained, consecutive, rising margin gains could really build a lot of confidence in that division as well.
I think this confirms what I (and others) have said. The company is being valued on its telecom business only. EVOSS, Fintech, IoT are not getting any credit. Actually even the telecom business isn’t getting much credit at the moment.
A spin off would be a way to maybe unlock that value, but they will need ways to demonstrate that value with some credible expectations. We need to know what it’s worth, but I feel it has to be worth something more than the zero that the market is providing.
But at least for now I’m not sure I would like to see the company split up. A lot of the strategy involves marketing across the portfolio of products. Not sure how that would be affected if split out.
But I can see why they would want to consider options that may unlock the value of their divisions. I like to think once we presumably reach profitability and if EVOSS and other divisions start to contribute then that could do the trick without any need for splits. Like someone said it is a holding company, it is doing what it does.
Sounds like it would, will, or may add capacity for SMS, VOIP, etc plus the 5g mentioned. Will be interesting to see the details if all goes as planned.
Probably a good idea to add the company name to the logo. There are likely few other opportunities yet to reach the public in such ways. Well Maxmo cards too.
Also, would think any Smart devices would include the name. Any exposure to who we are can’t hurt I think.
lol
I thought this was interesting, maybe iQSTEL could do something in this market area?
https://www.msn.com/en-us/news/world/ukrainian-fighters-take-to-electric-bikes-in-the-war-against-russia/ar-AAXJROx?rc=1&ocid=winp1taskbar&cvid=4db37672d2a04f99a53dcc1bf9a1ad15
Per the source below:
12.32 average telecom company
21.24 average technology company
The telecom area that iQSTEL is in is expected to grow at around 5% last I recall, so if iQSTEL had no other growth opportunities then the P/E could be around 5%. But they are acquiring and appear to be able to continue to do so for some time to come. That can allow for a much higher P/E. In fact their CAGR based on actual revenue from 2017 to 2021 is over 71%, so their P/E could run that high as long as that rate continued. That is pretty high, and the forecast doesn't point to it, but we also may see it pass the forecast. Even so, a 40% growth rate and 40 P/E might be justified and that's not bad at all.
Note this assumes they become profitable and had EPS growth rates to match revenue growth. Positive EPS and EPS growth is the major factor.
And that's all a discussion about their telecom business. The are actually trying hard to be a substantial up and coming technology company as well.
https://csimarket.com/Industry/industry_valuation_ttm.php?pe&ind=905
https://csimarket.com/Industry/industry_valuation_ttm.php?pe&s=1000
Love it! The $7.4 million revenue for April is impressive considering January was $6.7 million and does not include the recent new acquisitions.
Q1 revenue was $19.4 million. Today's information may imply at least $22.2 million for Q2, before acquisitions. Nice.
It's a wonderful thing once break-even gets passed. Hope to see it happen here and soon, and growing revenue can make it that much better.
This tweet appears to be in line with thoughts I had. Get the few bikes they have out around to as many dealerships and countries as possible to grab all the attention possible and hopefully get some big orders.
IMO, giveaways to shareholders and others can wait until they have plenty made up, and are offering direct sales, when any positive reviews could benefit the most.
Hey Knux,
That would be great if you can get some more details. Overall I think there is a lot positive about it, but I wish, or I hope it includes a termination date.
Also, I don't see it either, but I wish it included some provisions for lock-up of sales at determined amounts of shares over several months so as not to impact the market all at once. Of course that would add risk to Apollo if the price fell, but might increase their gains if prices rose over the lock-up period.
But overall they can do a lot of good with the potential proceeds I think.
Right, the 10-K doesn't include a termination date, and that would be good to know.
We may have seen that before but I think longer term certain things can provide support such as potentially reaching profitability.
Obviously a growing EPS and a Nasdaq listing could help a lot as well.
Simply put, exercising an option when the market price is above the exercise price is a sure bet (less cost of option) vs. buying into the market at the current share price.
Wouldn't we wish we could buy IQST at $2.00 next September if it's trading at $4.00? The option is paying for the privilege.
My guess is that it is a risk/reward deal. Also, they can't buy that many shares in the market without moving the price up substantially. Sure, they could buy smaller blocks over time, but by the time that had 5 million shares it would probably show in the market price.
But just for argument sake let's say they could buy 4.8 million shares at $.40 at a cost of about $2 million. Now they have to hold that position hoping that the price goes up, and soon enough that they didn't lose a better opportunity elsewhere. If the company is doing great, but the price won't move up - or even worse, goes down and stays there for several months, then the risk just gets worse.
With the option, Apollo assumes a possible loss of a fixed amount of $500,000. That's the most they can lose. They probably wish the exercise price was $.40 or even $1.00, but apparently the deal iQSTEL would make is $2.00 and apparently Apollo thinks that is a fine price. Also, they apparently further believe the share price will go significantly higher than $2.00, so they can make a good profit, or reward.
I see this as a pretty good clue to how strong the company must seem to Apollo that they would accept the $2.00 exercise price. Depending on the termination date, if one exists, they may not exercise the option until/unless the share price gets at their target price. But iQSTEL will want the money sooner than later so I hope a termination date was set, even if not disclosed.
Still even if they bought at $2.00 and sold at $3.00 that's a pretty good, somewhat instant return even after deducting the price of the option. We take a little hit on dilution but suddenly iQSTEL has more cash to grow, and that's why we are here, for the growth potential.
yw BW
One additional note I'll add as an afterthought. Another good reason to have a termination date would be that it would help maybe push the issue for Apollo to go ahead and purchase, instead of waiting for the price to (possibly) keep rising.
I'm sure iQSTEL wants the cash as soon as possible, and would prefer that Apollo make their purchases around $2.00 or a little more, but not way above that level.
If the share price goes higher, that should provide other, better, opportunities for the company. This could mean in sales of shares at much higher prices, or maybe even just conventional loans at reasonable rates that successful companies can command.
Of course we don't want to see the share counts go higher, or if they do, we want to see growth that more than justifies the cost in ownership.
That's a good question. An initial exercise date of 9/30/2022 was provided, which should mean that Apollo will be able to purchase those shares on or after that date. Normally there would be a termination date by which the shares must be purchased or the option forfeited for any remaining non-purchased shares.
But the 10-K does not provide the termination date. We would hope there is one, otherwise Apollo can keep buying those shares at $2.00 not matter how high the price might rise. But either way it's not too big a deal I don't think. iQSTEL gets cash sooner or later if exercised. Sooner means more cash, later may mean less market affect of new shares being added to the market.
Overall I think this is a positive. JMO, but I think it shows that iQSTEL and Apollo believe the stock can be over $2.00 by September. But if it's not over $2.00 by then they still have the option until the termination date, if there is one.
In theory Apollo could have just bought shares in the market and hope the price would go up, but that doesn't bring in any cash to iQSTEL. The option is a way to sell shares, but this is deal is much better. They could have sold a bunch of shares under market value which would stuck it to the investor. Instead, they are guaranteeing that they (and we) get at least $2.00 a share and also the $500,000 too.
I think its a pretty good deal considering where the price is at today. Now if the market price is $4 or $6 or $8 (or whatever) come September, then it will look like a pretty good deal for Apollo, and some may not like it then. But when you look at the overall market at this time Apollo is assuming a significant risk, and we get cash for that.
They most important part is the maximum share count increase is about 3.2% and iQSTEL can get up to a bit over $10 million in cash for the option. That's huge and can potentially fuel many Smarbiz/Whisl type acquisitions, or a even several larger acquisitions that could fuel enormous growth. I assume that is the reason for the option. The extra 3% increase could pay investors over and over in EPS growth opportunities. We are a far cry away from days of giving up millions of shares for low thousands of dollars. This should serve as a pretty good indicator of just how strong this company really is.
I see this as a very positive sign, but I hope that some affirmation such as margin expansion, profitability, and/or even some good product news with EV, Fintech, Smart Tank, etc will come soon to help support the price move to levels that the Apollo announcement appears to foretell.
I agree, if it were that solid it would already be there. Also, its not even profitable as of last report.
I was just looking at those two acquisitions if they stood alone, and brought in the net income like the company projected. It's forward looking and there is much to prove.
But a company's growth rate can fuel a higher P/E than industry averages. WMT is not a comparison either in operation or growth rate. But your P/E of 7 is probably close to a rate for a similar telecom that is growing at more typical levels. SmartBiz and Whisl all by themselves may grow at a similar level. iQSTEL is growing higher through acquisition. It remains to be seen if they will also grow with their new products, but that is the plan.
Eventually company's that grow rapidly will begin to mature, and their P/E's will reflect that.
IDK either. But we were once told that Smartbiz might close in January. I'm sure there a lots of moving parts so maybe we still have some new coming on the third acquisition you mentioned.
What is amazing to me is that you can make a case that SmartBiz and Whisl alone, in some calculations, could justify the current share price, or something close to it.
If you use $90 m revenue then CAGR over the last year, and over the last two years, is right about 40%. That could justify a 40 PE.
If iQSTEL's projection of $1.34 m of net income is accurate then that implies net income of .009 on current shares of 149,357,358. At a 40 P/E that implies a share price of $.36
If you are of a mind that iQSTEL will see $100 m revenue this year you could make a case for a 50 PE. Is it sustainable? IDK, but if they are just entering a rapid growth phase, then who knows? They appear to have lots of cash and a deal with Apollo that looks promising for more M&A activity.
With all the guesswork and presumptions a 50 PE on .009 net income could yield a possible value of $.45. I think this is the point that the CEO alludes too in today's message - these two acquisitions alone are potentially adding substantial value to the company.
As many have said here, look at the company not the share price.
Fundementals3,
I saw that too and came to the same conclusions. Makes you wonder what will come out between now and September, but also Q2 should be out by then.
Also, it struck me how strong the balance sheet has become. Assets far outweigh liabilities. It was partially fueled by a modest share sale and the Apollo option. It looks like if fully exercised it could bring in a lot of cash.
I can only guess they will need cash for EV product manufacturing, perhaps IOT device manufacturing, and maybe more or larger acquisitions. At near a $100 million company I don't think its hard to imagine the acquisition sizes becoming larger.
Overall margins were still tight, but each division was positive and the new acquisitions may help strengthen the margins.
I hope we get some substantive Smart Tank/Smart Gas/Fintech/EV and/or Blockchain news soon.
I’m guessing it’s a shakeout but loads of uncertainty abound.
This is interesting from the Whisl 8-K:
"The Company provides local US termination for Voice through its FCC license of VoIP Service number 832742, and plans to obtain a C-Lec FCC License over next 12 months. The Company is one of the premier Intermediate Voice Providers in the USA. It has been a carrier since 2017 with billions of minutes traversing its network. The Company provides its customers with multiple levels of Redundancy, Diversity, and Disaster Recovery for their applications and ability to make changes to underlying carrier configuration in real time. The Company offers a single carrier solution for Voice Global services, and its customers benefit from hundreds of interconnection agreements that the Company has cultivated since its inception."
I read a little about CLEC. I don't fully understand the significance, but sounds like a good positive step forward if they follow through with it.
This appears to be an update to the website. I think this implies that they have a plan with at least one distributor "coming soon" in 5 countries - Guatemala, Panama, Venezuela, Spain, and Nigeria. Says looking to find distributors, or more distributors in some areas such as USA, Mexico, Central America, South America, and Africa.
https://evoss.net/
Nice find. I know from my own experience that more and more places are using SMS for two-factor authentication.
Say good buy or say good bye! Don't matter to me.
I'm still nibbling. Still trying to reach the next 100K milestone, but happy if I don't.
yw - Good deal.
I pulled it up with Google Chrome and it let's you see an English version.
Yeah, it may be retro but it's eye-catching and looks great. Can't wait to see them branch off to the next models, but some orders on this one would be awesome for now.
Impressive web site update. Nice job iQSTEL!
I assume you will add dealer info, and more about how to purchase as the information becomes available. Also, I would still like to see the new Global Money One site attached to the main website.
https://www.evoss.net/
One of the great things about iQSTEL is they have so many new products in the works that there is no need to be "frightened" if one product does not work out.
That said, Smart Tank is an award wining IoT product and the version in use at the Fortune 500 company was tailored for them. iQSTEL certainly hasn't provided much additional information, but it may do well to bear in mind that the customer is on their own time-frame. In other words, for all we know, there is a trail period, perhaps a year as a guess, and so there is nothing new to report.
Investors may want quicker feedback, but that is not the concern of the customer. They may need time to decide if it works like they want, or they could even decide they just don't want or need the service whether it works as expected or not. That's why I say there may be an extended trial period. Just a guess.
The potential good news is that if they like it, maybe they place a huge order after the trail period. A long trial period would make perfect sense as a huge order would represent a huge investment, and one they don't "have" to jump into quickly.
And keep in mind that even if this company declined, iQSTEL may find other companies that must have it. Like I say just a guess, but if all that is true what really more is there for iQSTEL to say right now? Even the length of the trial period could be non-disclosable information.
The last company information I recall came in February. Basically they stated "progress" was being made and said they saw 8 or 9 potential big customers. And presumably there could be many, many more smaller companies to approach.
But again, the IoT division is not crucial to success. Rather it is yet one more possible breakaway source that could create a valuable revenue center in its own right.
"Internet of Things: Our business development team, in addition to the installation of the first batch of IOTSmartTank for a Fortune 500 chemical company, we also have around 8 to 9 big corporations as potential customers for IOTSmartTANK and the same amount for IoTSmartGAS. Our progress makes us optimistic about how the market will receive our IoT awarded products."
https://www.insidertracking.com/iqst-iqstel-business-development-and-nasdaq-listing-remain-on-track
Yeah good points, and I mentioned that about quarterly calls recently too. Enjoy your break, but hope to see you back soon.
In light of Oldman's VZ mention -
You might find this article a good read. It's focus is on Verizon, and Verizon had a tough day today.
But some interesting points that are relevant to iQSTEL is how the communication industry has been out of favor for some time, and how the author sees the possibility of how a return to favor may occur if overall economic conditions worsen.
In addition, the author implies that the market is currently not recognizing the value of the coming 5G revolution and the potential for IoT solutions - both among the areas that iQSTEL hopes to capitalize on.
But what I would like to add is that we all know the market was down today, and more than that, Verizon's drop probably didn't make our sector look any better, so Oldman's comparison is very relevant. But Verizon's results do not have to be any reflection on iQSTEL's prospects.
So we may getting held back by the sector being out of favor, but I assume we can come back in favor at some point. Maybe by economic conditions, or by new strength in the industry fueled by innovations such as 5G or IoT, etc. In short, I think the state of the sector is the "wound up spring" the company refers to, and a return to favor might bring in lots of new interest to such companies.
And one last note, I'm not sure how much longer we will be tied to the communications sector anyway. That is, if the EV, Fintech, and other technology solutions begin to capture significant portions of revenue share.
https://www.nasdaq.com/articles/this-ridiculously-cheap-warren-buffett-stock-could-make-you-rich
I think when we get too focused on this idea of cost being equal to revenue we can tend to think that's how it is and how it always will be. It's a distinction that may seem small but can make all the difference.
There's no doubt a better margin performance on the 10-K would have been more impressive, but like with most all metrics it is one that is seeing positive improvement. It looks like to me that revenues and costs reporting is not fully aligned so that we see see-saw results. The graph below shows that, but what is worth noting is that with each quarter the margin improved from the result in the comparable trough of the two quarter preceding it. To me that shows that they are making positive improvements in telecom margins. Maybe its a little slower than we like, but actually it grew at impressive rates of 48% and 233%.
This should be the results of synergies and cost savings, and thus should be at least sustainable if not being an area to continue to improve, and they really do need to get the overall level much higher. But, if the pattern holds then Q1 should be the next swing in the higher trough. Also, keep in mind this is built on telecom, so if other divisions (like Smart Tank or EV) begin to show in reports it should help to strengthen overall gross margins.
Any new acquisitions "should" be done as immediately accretive, and I seem to recall iQSTEL stating that as a goal. Note that iQSTEL stated that the newest acquisition is projected to have positive net income, and that should be before any cost savings iQSTEL may implement.
When you add immediately accretive acquisitions then the main concern is whether operating costs will increase. The acquisition should not increase operating expenses per se, as it was said to project positive net income, and that would include employee expenses. More than likely, they may find they don't need as many employees, or can use the acquired staff to bring in revenue in other ways.
Also, among all the other positive things iQSTEL is doing, they are also decreasing existing operating expenses (general and administrative expenses) as seen in the second chart below, and its a pretty impressive accomplishment.
All together I suspect we won't need to worry about all the revenue being used up in costs for very much longer. Another approach would be to do a full break-even analysis of the company, but I think the empirical evidence suggest they have been very close to break-even and may soon pass it. And once passed, the numbers can began to look better and better, as long as they continue to grow the revenue and hold the line on expenses. Increasing revenues, increasing margins, and decreasing costs is where positive EPS can flourish. And it doesn't hurt a bit that interest expenses are more minimal these days. Maybe they will even earn a little interest on their cash position.
BTW, I didn't see the company say that the shareholder letter will be out today. Maybe it still will, but the actual word was "subsequent" to today's report and "usually" on Thursday.
Exactly! Just getting to Nasdaq doesn't mean anything in the long term if a company, any company, just landed there on high hopes and a good prospects. You want to get there based on consecutive improvements that will continue beyond the listing and allow for that new Nasdaq company's share price to continue to grow.
That looks like the way that iQSTEL is working towards with steadily increasing revenue, steadily improving balance sheet, and a path that looks good for profitably. The exact timing of the listing doesn't matter, what is important is how strong a case it has made to get there.
Honestly, I'm not focused on a certain inflection point. I think the stock is worth considerably more than its current price, but markets are not efficient.
I know the company would like to see Nasdaq in the first half of 22. It doesn't matter to me if they reach that goal or not as long as the company keeps getting stronger the market will likely catch up, IMO. We sat at around $.08 for months and months, until it was gone and hasn't been seen since.
You can go back and read the posts from then and much of the same types of comments and observations were being made, just at a different price level.
In any event, there are numbers of potential catalyst from telecom acquisitions, iOT products, EV, Blockchain, Fintech, and EV. Also while some may dwell in their self imposed hell over what the 10-K didn't do for them we should realize that we should be about three weeks away from the next 10-Q and that will provide much more of a current picture of the company.
There's always the chance that one report or one announcement could create a "inflection point", but the reported underlying fundamentals show steady growth. Things don't always move at the pace we want, or even as the company wants sometimes, but performance should be rewarded sooner or later. We still have a lot of time before the 2nd half of the year.
But whether we make Nasdaq by then or not, as long as the company improves then things should right-size eventually. This company should be trading well above a $1.00 easily based on what I see as reasonable and justifiable valuation, just on the current known business.
To my math, Smartbiz alone should add $.20 to $.40 to the share price based on the numbers iQstel provided. I believe that also would not even including any cross selling, synergies, or cost savings.
Also the statement about introducing iQSTEL to the U.S. market is interesting. Certainly from the aspect of opening a door to all iQSTEL telecom services into the U.S., but maybe some other services too? Fintech?, MNPA?, EV?
"The Smartbiz acquisition expands iQSTEL's customer base and extends iQSTEL's cross selling opportunity to further expand sales through the acquisition by introducing other existing iQSTEL services into the Smartbiz customer base. Most significantly, the Smartbiz acquisition introduces iQSTEL into the US telecommunications market..."
Thanks, No I won’t be until we get a few more updates.
Here are some charts I made with a few notes for each.
- Revenue growth 64% CAGR since 2017
- Steady, consistent quarterly revenue growth
- EPS growth 3-year running, near profitability
- Net income maintains upward trajectory
- Shareholder equity growth is rapidly expanding
- Assets are rapidly growing, liabilities are rapidly declining
- Clear evidence of gross margin growth trend both on high and low troughs. Synergies and cost savings are validated.
Have regular quarterly conference calls - ran and hosted by company. This is what the bigger companies do.
-CEO speaks on results.
-CFO speaks in more detail on financials
-Any other EXEC speaks
-CEO looks ahead including promising new products etc, and/or headwinds
-Q&A
I suggest provide some time frames. What quarter do you expect revenue to begin from EV?, MNPA?, Smart Tank?, Smart Gas?, Fintech? etc.
IMO, providing those calls and the timelines could go along way to bolster investor confidence.
That's my 2 cents for the day.
btw - nothing against youtuber calls if they wish to continue, that's just an additional outreach I think