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Lot's of potential, it's way early.
Ok, Alpha Status, Brendan G is getting ahead of you on coverage lately.... just saying. :)
Happy New Years! We’ve only just begun, looking forward to a great 2022.
Great day!!! Brendan G gives another mention at about 2:00. Brief but very positive.
The first we heard was “excess of $50 m”
They filed their 10-K on April 15 this year, so this statement (below) should mean they expect the results to bring the share price up to the levels needed for Nasdaq listing by April 15, 2022 or so, based on those results. Apparently they expect to report some excellent results and note that is for 2021 alone - they don't say based on 2022 results. Of course, if the price has not already reached qualifying levels by then.
There has always been some debate on exactly what price that means $2 - 4$, but if only $2, it will have to be sustained for 90 consecutive days.
Really once more details emerge about the (now) $60 m deal I wonder if we will have to wait so long. And IMO, the language today sounds like the deal is even more solid than at last mention.
It would be nice though to qualify on the $4 rule, which looks to be the quickest route to getting the Nasdaq listing.
And if they give us more than just a few pictures of EV bikes that alone could be a great catalyst. By more I mean, some details about how they plan to distribute, and realistic revenue expectations, etc.
"I remain optimistic that when we publish our 2021 audited financial statement with over $64 million in revenue and shareholder equity in compliance with Nasdaq's minimum listing standards, the IQST share price will come into alignment with its yet unrecognized value in the marketplace meeting Nasdaq's minimum share price requirements."
And another one.
I would hope they set up the ownership to avoid that, and combined, several of us own a lot of shares.
I think these are good questions, but my original point is the possibilities for growth opportunities that an investment firm may bring. This can be an exciting time to be in, perhaps even get in to, this company before what may become its rapid growth stage.
I agree that the company could look attractive for a takeover, but IMO, I don’t see Leonardo giving up now after so much accomplishment. I see him and his team wanting to see this grow into major company, they have shown this fire of desire for some time now.
Sure they may could take a nice quick profit, but the longer term payout could be much greater for them if this becomes $1 B plus company, and I recall one comment of that being a goal as I recall.
I think other companies should be more concerned about being taken over by IQSTEL as that’s what they do as a holding company. I guess anything is possible but basically they and us could miss out on the biggest potential returns that way, and I just believe they have bigger aspirations in mind.
Also, if that were about to happen I doubt an investment firm would be in the picture as it’s likely the larger company would have its own funding plans.
A $5 m buyback probably would help the stock price of course, but I don’t think we will see that from a bank investment. This is for the reasons Crawfors and Knux said, and also I assume that the investment would come with agreed restrictions on its use.
Investing in growth being the top priority and I agree with Crawfors that action along with other positive developments like profitability could move the share price right on up. We may feel like we are stuck under $1 since it has been there for months, but past performance doesn’t have to indicate future results.
Also, a buyback will cost more and more if/when the share price goes up. If they were going to do one it would have been much better at under $.40, but they didn’t have the money then, to my knowledge.
Having said, I think a buyback could be met well by shareholders if done at prices under $1. But I think they will favor growth opportunities over share repurchases and that won’t be necessary, again as Crawfors said.
If the $50 million happens I'm not sure where it goes, but I think its safe to assume more M&A activity. As Crawfors mentioned telecom is currently the core so I would bet more acquisitions in that area are almost a given.
I could imagine some of the existing products needing a funding infusion to accelerate the rollouts. Smart Tank, EV, and Fintech may all fit in that category.
Manufacturing motorcycles will take some upfront expense, but the quicker they can build inventory, the quicker they can generate potential revenue.
Then after some or all of that, I hope they can pursue other new product lines. If their battery is as good as it may seem then why not EV scooters, hoverboards, bikes, atv's, golf carts, and mobility chairs, etc.? And, their battery website shows a picture of batteries in a car. Maybe they are thinking of some possibilities there too?
Cell phone batteries? Laptop batteries? Boat/marine batteries? Watches? Medical devices? Maybe you can think of more?
I do recall them doubling the battery life for their smart gas product, up to like 5 years if I remember correctly, before it has to be changed. I'm thinking the battery life could have been a factor in the award they won for the product.
Also, I'm thinking why not get into solar? Maybe they can offer a solar cell option and maybe their battery technology could work with the solar unit?
I would think they have some very specific plans for growth with the money, if it comes, but also the more they may make in profits, the more chances to grow the business. Maybe they will shed a little light on their plans if/when the announcement comes, but it looks to me that plenty of opportunity may exist.
We were not even talking EV motorcycles a year ago, so I think its fair to wonder what could come next.
Another quick mention near the beginning of this one:
Agree - There are a number of us here who could sell out with a nice profit, and could have done so at any day of this year, but we believe there is much more potential.
Eventually many will sell, at whatever price it may reach that suits their plans. Hopefully the company keeps growing and there will continue to be fresh buyers looking for even better prices.
And some of us might just stay in and collect dividends if the company gets to that point.
It's a market.
I couldn’t have said it better than the three of you did. Flippers will come and go but positive exposure to potential long term holders is the key. Thus far the moderate but steady rise in price has been tempered with predictable profit taking and it’s very healthy IMO.
Great!
Here's another. Suggest start about 4:20.
Rock n Roll!
Thx - I love it when they have lots of subscribers (48K + for him) and thousands of views from people who may never have heard of us until just now.
Here was his first one, about a week earlier. Start at about 3:00
This one is new to us (as far as I can recall) and has a lots of subscribers.
This is a few months old, but first I saw it. I love it when publications cover us that reach out to the entire motorcycle and powersports industry. (includes scooters and ATV's etc.)
I'm thinking if we got a mention for just entering the area then what will they do once sales begin? It would be great to see comparisons to other manufacturers etc, maybe it would even help drum up some sales?
https://www.motorcyclepowersportsnews.com/iqstel-subsidiary-to-build-electric-motorcycle-for-latin-american-market/
Their home page:
https://www.motorcyclepowersportsnews.com/
I don’t hold any shares in it. Did briefly and got out with small profit. Their share count ballooned after that.
I hope they have good things coming, and for our sake too as a supplier, but the number of shares they have is a little much for me. It’s great to see a company stop issuing shares and that’s something I like with iqst right now that they could have and didn’t. I think they are seeing what happens now when you hold off on selling shares and push towards profitability. I think they get it now.
If they do again it needs to be for reasons that increase shareholder value, but I hope they can hold the line and reduce eventually.
I think a $90 million projection for 2022 is good place to start at this time. Notice the comment "BOD" approved.
Why is it appropriate? My thoughts are as follows:
Telecom $80 million - This is easy, they are doing about $6.5 million a month now and adding a $15 million company. That adds up to more like $93 million, but they are apparently allowing for any possibility of reduction in business. Their pattern has been to low ball projections, and this appears to be the case again I think.
And of course, they may acquire more telecoms in 2022, it's way early.
Smart Tank - all we now of is 2500 units. We don't know what they generate in revenue, probably under $1 million a year if I had to guess. They may be waiting to hear about more sales from the Fortune 500 company or other large customers. Or, they could even know about more sales already that look pretty solid and they just can't announce it yet. Either way, they shouldn't be including in projections until we have been told about it.
EV with ALYI - Last they said they were still negotiating with ALYI. If that's the case, it would be hard to make a projection until a deal is finalized.
iQSTEL EV motorcycles - It's all new business for them. They may hope they sell so fast they can't keep up, but as far as we know they haven't sold one unit yet at this time. They will have to see how it all goes from manufacturing to distribution to sales. Too early to be making any big projections.
Well you could make projections, but my guess is they want to keep it low until they get a better idea of how its going to go as sales occur.
MNPA - They originally said it could generate $26 million annually by 2023. We don't know exactly where they are with it, but like most things do it will likely start smaller until it can get larger.
Fintech - According to an old SEC filing iQSTEL saw it's first year, optimistically at just over $2 million, which I assume may be 2022 at this point. But from the image below see how quickly it can grow in the future years.
So all considered $10 million for 2022 for all "non-telecom" is probably a good starting point, maybe even better than you may think. If Fintech is only projected at $2 million, and if smart tank (today) can only be projected at $1 million that means they see MNPA and EV bringing any $7 million.
Or use any numbers you like, but I think the point is several of their product areas still have potential for much more revenue, just as telecom does, and by saying they are confident at $10 million now shows they expect a pretty good year for several start-up products, even if that's all it did. But it still leaves plenty of room to exceed too.
Just MO, but I expect the 2022 forecast to get upgraded a few times, as their products begin to show in revenue.
Also, a great note about net income positive for 2022. That doesn't mean Q4 2021 won't be positive, it's just saying you should expect to be able to use a TTM P/E in 2023, and of course that lends to using a forward P/E if you like.
"Slow and steady wins the race". A nice pop every now and then would be great too.
It sure has been working out that way. Maybe the earlier run to $2 was getting a little ahead, but all the coming soon plans should be kicking in any time I think. A little confirmation could do wonders I believe.
Apparently another Youtuber just found us.
Coach has covered us several times:
This one at about 2:00
great :)
Right, that's why I am here - they are doing well although their communications are confusing (to me anyway) sometimes.
Real progress speaks though and they have shown that.
Thanks for trying. As I mentioned, I was laying it out there if they can cover any of it in the next letter, so maybe mission accomplished - we know they have seen it now.
Thx - I imagine they won't answer all, I just laid that out there if they are writing up another letter soon. These are the type of things that I think would encourage investors. Just to know where we are and not have to guess.
They tend to "tease" a lot I think. I see progress in the numbers, but they won't get the share price up on just "coming soon" alone and several of those things should either already be producing revenue, or be very near to it.
As exciting as the future may be they need to spend more focus on what they are doing now, or laying out a clear path for the not so distant future.
For example - they seem to think its enough to say they have motorcycles being manufactured. Ok, well that is great but:
How many by the end of the year? 20? 200? 2000?
Who will sell them?
Any idea on revenue for EV and margin? Exactly when?
Are there other models coming? Other vehicles besides motorcycles? Scooters? etc.
Revenue from ALYI - How much? When? How much in longer term?
Where are we on MNPA? Revenue recorded yet? When? How much?
Are any customers using MNPA yet at all?
Where are we on Smart Tank? Revenue recorded yet? When? How much?
Is Fortune 500 company satisfied with smart tank? Were all the 2500 units installed?
Where are we on Fintech? Revenue recorded yet? When? How much?
Are telecom margins improving? What range should we expect from telecom in a year? 10% margin? 15% margin? More?
Other new products on the way? IoT or otherwise?
Is smart gas sold to anyone?
Are any Fintech products being offered to anyone? Is AGO bank promoting it or preparing to? Exactly how will customers be found and sold on this and other products?
I get it that they may not want to tell all their secrets, but the more they can disclose the better to attract investors I think. A clear path to success is better than a foggy one whether you are riding an EV or sizing up a company's worth.
I still say they need a call after each quarterly report. No one cares if the CEO doesn't speak perfect English. I heard him in an interview and it was totally fine.
I do think the board appointments are helping. You can see the resolutions they made are on track to build shareholder value - for example, holding on adding Reg A shares for nine months going, focusing on bringing the revenue from new products, and goal to (somehow) keep growing the business while pulling off profitability and continuing to improve financials.
That's the right focus if they ever hope to get the share price up for Nasdaq. Or, of course we could always be one major announcement away from better share prices, if they have such. Maybe the FY 2022 forecast will be a catalyst.
One suggestion I have is they need to rethink their PR strategy a bit. They seem to have a trend to heavily cover a product, then when the "next big thing" comes along, they focus almost all attention to that, while leaving you feeling a bit empty on the previous product.
Like Crawfors mentions about how quite they are on Smart Tank now. Once they decided to build motorcycles that's most all you hear about. I don't think its intentional, they probably just don't have much new to highlight yet. And when they do , we do hear about it. Like the new acquisition brought telecom back in the spotlight.
Just saying we need regular updates on the products, Smart Tank, MNPA, Fintech, EV, etc. even if its just to say "still working on it". Certainly we need some guidance on when revenues for each product will start to show, in which quarter.
And really I thought the IoT division would be announcing more new products. I imagine they have had their hands full with EV, but the product is being manufactured, so what else does the R&D team have?
It's in there, just not specifically mentioned. Same with MNPA.
"We intend to add to the $80 million Telecom Business forecast additional anticipated revenues from our Internet of Things, Blockchain, EV Motorcycles, and Fintech Ecosystem business lines. These revenues are expected to make substantial contributions to our overall profitability."
Also,
"Without losing focus on current operational improvements and growth, management should complete the product launching and start the revenue streams of our new high margin business lines: Internet of Things, Blockchain, EV Motorcycle, and Fintech Ecosystem."
I agree with the board, it's time to get out of "launch" phase and start showing revenues.
I hope they give us some more specifics on each product this month as they provide further updates such as a complete forecast for next year.
"We are currently working on the 2022 forecast."
"We expect our consolidated positive net income trend to continue improving quarter to quarter."
"Management is committed to reaching profitability in the near-term."
"I will also add that our M&A campaign for 2021 is ongoing. Look for updates."
Glad you had our back on that MM!
Alyi has a market in Africa, maybe elsewhere. To my knowledge. we supply basically most of the high tech EV battery and certain other communications systems and such.
We plan to sell our own motorcycles but in a different market, mainly Latin America, but maybe some in the U.S. and Spain and and surrounding areas to there.
Yeah, we just don't know though. They may all be installed and they just haven't told us. But typically if they have good news they tell us, so you may be right. An update would be great, even it's not everything we want to hear.
Like I say, I don't follow ALYI, but where we are involved it may pay to keep some general idea of where they are on motorcycle sales.
If they are at $58 today then another $5 should be pretty easy based on recent monthly patterns.