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Anyone notice the recent OTCQB Certification (updated) disclosure?
The Number of Restricted Shares (Section C on page 1) went from 19,866,284 to 148,503,940
(Delta of 128,617,656)
My guess is they either A) had an employee(s) leave so they had to give up their restricted shares or B) the company purchased more shares to add to their stockpile.
Anyone else have thoughts on this? Maybe it was just an honest typo and I'm over thinking it.
Link: https://www.otcmarkets.com/stock/SSFT/disclosure
I believe the huge run up (volume of 31m shares) a few months ago was due to Timothy Sykes and his followers day trading.
Maybe we are seeing some of these "traders" (Holders) finally selling out.. Just a random guess though
Time will tell :)
Let’s revisit in a few months / year and see where we end up.
Sorry for coming across as so negative but I’ve been just super frustrated with their stock performance lately. .
Agreed
Fair points.
However there is still a balance of 1) not pumping up a stock to then have executives dump them at all time highs and 2) keeping stock prices higher so they can raise future funds at a higher price which then terns into more funds to fuel growth.
The good news is the Sona team isn't doing the former but the bad is they are struggling with the latter.
Why does this matter for long term holders? Well if you want more growth you need more $$
Lot's of companies have relationships with big names.
However, that doesn't always mean there is revenue attached to it or a huge sale involved. It could simply be a partnership where they have integrations with one another.
Without seeing the financials it's hard to know what the financial impact is of these deals.
If the company was smart, they would do their best to keep share prices high so that when they issue more shares they will receive more funds for them.
The share count has doubled in the past 12 months while the stock is down 90%. It's one thing for this to happen and management says this is happening to fuel future growth or help with acquisitions but we haven't heard a peep from them about the stocks performance or continued dilution.
Yes that is true.
However, sharing goals once every few months is not enough for a public company.
Look at any great company today and you will see their executives constantly communicating with their shareholders about the companies performance. It's really not a hard thing to do..
The one thing that is keeping me confident in this stock long term is that the board/executive team continues to hold on to their shares. If this changes, it would be a huge red flag.
I'm simply suggesting that staying quiet isn't the proper way to run a business and its takes little effort to put out statements about nothing changing with their future vision and that the company is doing well financially. Without transparency, you will get investors who lose trust in the stock.
Higher stock prices = more power to the company when it comes to raising funds so it's in the companies best interest to do so.
The amount of folks not being critical about their investments is a sure way to get blindsided..
I'm not a fan of people YELLING OR USING ALL CAPS about shorting this stock or how bad it sucks but I am also critical of those who hype it up without looking at the facts from multiple angles.
You have to be critical of your investments in order to avoid getting caught with bias.
I'm honestly not sure what to say to those who are comfortable with their investments tanking this much when the rest of the market has done so well over the past 12 months.
Look you don't have to sell me on the product and vision of Sonasoft..
I'm simply stating the fact that there has been a massive sell off and the stock is down 90% year over year.
This doesn't happen when you have a great product that is selling off the shelves and a management team that knows how to keep up investor confidence.
The only reason you would stay quiet is because there are huge concerns internally about the companies future.
If management was confident, they would simply put our PRs about their vision for the company and where they are heading to boost investor confidence.
In my experience, when a company is quiet about a stock tanking, they almost always end up in BK.
I'm not a "short seller" and have zero interest in selling my shares. However, you'd be crazy to not be pissed about the lack of leadership going on at Sonasoft right now.
How can you not be upset about their lack of performance...
Easy fix for management: put out press releases about the companies direction they are heading and share frequent updates with the community about product updates to improve investor confidence. Being quiet isn't a way to build investor trust or confidence.
IMO - this will either go BK or will be multiple dollars in the next 5 years. No in between. Best of luck to all!
To be clear.. I haven't sold a single share. While I'm frustrated at the lack of management I'm still a long term holder. Buying more at these prices.
Shhhh.. I'm trying to load up on the cheapies :)
Loading the truck up on these prices. This is just a massive Black Friday sale
Someone knows something we don't..
Down 90% Y/Y - going bankrupt?
What a horrible resume builder for their executive team..
100% agreed with this statement.
I believe the reason they are struggling this year was due to reasons outside of their control (COVID) and that caused a lot of companies to pause / delay spending.
My money is on businesses picking back up spending in 2021 and Sonasoft will be a huge benefactor.
While it sucks to see this undervalued stock stay so low, I do believe the future is bright. Just wish management would come out with some positive news for once..
Has anyone ever reached out to investor relations?
If so, any luck? Also, what contact info did you use?
That I do agree with.
I believe they are doing a complete 180 from their historical business model and that it will take time to turn around. Management did say not to expect significant revenue increases until 2021 since it will take some time to ramp up sales.
I am also pissed about missing out on other opportunities.
For sure "DeerBall" - I was a long term holder/support but now I question the lack of transparency behind what's going on and causing this sell off.
If management truly believed in their product they would be putting out PR's about why they believe in the company and that the stock is way undervalued and that the market doesn't understand it's potential.
Because they aren't doing this, it makes things seem very fishy about what's going on behind the curtains..
Still don't think management should be fired? lol
What a shame to see this tanking..
Sonasoft had so much good going for them but the lack of quality leadership is obviously a problem.
Sad part is according to Level 2, seller didn't even sell yet. They still have 734,443 shares they are trying to let go at 0.083.
Management should be fired because they aren't doing enough PR to help drive traffic to their website which would in turn help drive sales. Additionally, with interest rates so low they would be better off either taking out a loan or going to a VC for private funding (making them private) instead of massive share dilution. Then.. once their new product has traction, take them public again and trade at insane multiples like every other IPO lately.
Good leadership would be posting all over social media about their company, ramping up ads, etc if they were confident in the product. At least be more transparent about their business and why their share price is down. They could even come out and say "we strongly believe the market is undervaluing our place in the market and over the next X amount of time our shareholders will hopefully start to see drastic increases in revenue growth"
^ this is how good C-level teams perform. This team has been ghosts.
I know Sonasoft has solid long term potential based on customer feedback and ROI they are seeing but management has a fiduciary responsibility to it's shareholders and they aren't living up to it.
What a joke. Management needs to be fired.
Look for a BIG buyer to step in next week
See you on the up..
Fake news. This is a LONG TERM investment and not a short term investment by playing the charts.
Sure you can make money playing the charts but you'd also potentially miss out on a huge rally once this does start moving upwards.
Anyone trying to swing trade this is foolish IMO.
Exactly.. Fundamentals look strong. The only downside that I see is them issuing more shares but that is for a good purpose (raising funds to fuel future growth).
Because they are transitioning their business to focus on AI revenue (a good thing in the long run), it causes short terms hurdles transferring resources and hiring different people.
Long story short, they are doing all the right moves but this process just takes time. It's similar to when Tim Cook took over Apple and people freaked out that Steve Jobs was no longer CEO. Short term pain but long term gains..
Trust the process and you will make out like a bandit. I'm continuing to accumulate at these prices. I look at this as a fire sale with 10x-20x potential easily in next 5 years.
Competition: (directly from quarterly report)
"5. Competitive business conditions, the issuer's competitive position in the industry, and methods of competition:
The primary competition for our NuGene AI platform comes from other AI technology companies such as H2O, DataRobot and SageMaker. These businesses generally take a broad-brush marketing-centric approach to competition, with significant investment in search engine marketing and online ad spend, focused primarily on the data scientist community. By contrast, Sonasoft is pursuing larger strategic partnerships with enterprise OEMs to establish a strong reputational foothold in the growing AI sector, focusing on non-experts who need assistance in leveraging AI, such as chief revenue officers and sales and marketing managers. Our speed of execution of AI development remains unmatched in the industry, with completion of AI integrations in 4 to 6 weeks vs. what competitors deliver in 4 to 9 months. This makes us a very attractive partner for customers who wish to partner with us to monetize very large data sets.
The Cornerstone subsidiary competes with a large number of other VAR resellers in the increasingly commoditized reseller sector. Our primary competitive advantage in this space is our customer network, depth of experience and knowledge of our engineering staff along with our strong reputation for service."
DataRobot - recently raised $206m in Series E funding for total funding to date of $431m. Sonasoft's entire market cap is only $25m and offers a significantly faster time to value than DataRobot. Something to consider heavily...
Link: https://www.datarobot.com/news/press/datarobot-announces-206-million-series-e-funding-round/
Sonasoft is going to crush the market IMO
"Be fearful when others are greedy, and greedy when others are fearful"
Those who load up at these prices will be very nicely compensated a year + from now for being patient. I'm laughing at those that call this stock a scam of a company. You can easily tell who reads the financial statements and who doesn't :)
This stock has so much potential all it takes is someone with a lot of capital to catch eyes on it and this stock will go parabolic. Mark my words, once this starts turning around, we will see all new highs in record speed. Additionally, once the company stops dumping shares into the market to raise additional funds (fueling future growth) there will be even less supply for investors to purchase.
Cheers to those adding and being patient when others are panic selling or haven't done any research.
All IMO
Hiring plans in quarterly earnings and what they mean for stock price:
“5. Any expected significant changes in the number of employees.
It is anticipated that Sonasoft will expand its team with the addition of three to five sales professionals, two to four project and product management professionals, and four to six AI engineering professionals.”
You wouldn’t hire these amount of reps unless you think they could generate at least 5x their salary. Running some conservative numbers, I’d say they predict to grow at least $10m in rev in the next 12-18 months.
Assuming zero churn of current business, this would put their total revenue at roughly $25m / year. This would be roughly 60% y/y growth in revenue.
Apply a 10x multiple on earnings puts the market cap at roughly $250m or 8.3x current stock price.
Therefore, a fair price for SSFT by end of 2021 would be approximately .83 / share.
At the high end of market valuations (like previous post “100x rev multiples”) > this would make the stock $8.3 which I think is a far stretch but shows the two potential ranges this could trade at in the future.
Proper P/S ratio:
Conservative: 15m x 10x multiple = $150m market cap
Current market cap = $30m (only 2x multiple)
$150m / $30m = 5x > $.50
Top end of market: $15m x 100 multiple for high growth companies growing around 40x y/y
$15m x 100x multiple = $1.5b
$1.5b / $30m > 50x > $5
The last example is caused by lower interest rates and is roughly what similar SaaS companies can trade at. I’d say a fair value for Sonasoft should be roughly .50-.70 in today’s market place but could be much much higher on a senior exchange with more volume.
Revenue over the past quarter looks solid compared to many other startups that I have insight into. 2020 has made it one of the toughest years for sales for many companies but because Sonasoft continues to provide such a big ROI for their customers, it's a no brainer.
The reason why the price is suffering (currently) is because they are diluting their shares to fund future growth instead of taking on debt. This is fairly common and a really good sign IMO. I've seen this several times before with other companies and while you might not see dramatic growth for the next 12 months due to dilution, you will most likely see exponential growth over the next few years.
Lastly, management team needs to do a reverse stock split of about 50:1 to help increase the share price to $5 and uplist to a senior exchange. This.. or they should do a secondary public offering on a higher exchange to get more attention. The current market is ripe for companies that want to "IPO". They've promised us an uplist to Nasdaq for some time now and when the day actually comes this stock will go parabolic (mark my post) :)
I've said this before but I strongly believe this company will see their stock in dollars within the next few years. Management continues to hit all of their goals that they've shared and while their stock is being diluted, it's for a good reason (to fund future growth)
No pumping here, all research and reading between the lines that leadership continues to share with us. (look up why they did common stock to preferred shares exchange). 18 month hold and these investors will get a 10% bonus for holding long term but the biggest bonus will be the dramatic share increase that we will see over time.
Cheers to an amazing ride. My advice.. continue to load up on shares, don't worry about the day-to-day stock price, and 5 years from know you'll look back and be thankful this company changed your life.
Previous high was .49 (see additional details below)
The reason why it dropped so much is anyones speculation since there hasn't been any negative news. In fact, revenue continues to grow at substantial rates (44% Y/Y growth). A fair market value should be roughly .50+ today.
However, if you apply similar valuation multiples of other tech companies (roughly 100x revenues), then the stock would be roughly $5. Math is simple, take revenue ($15m x 100 = $1.5b market cap). Then take $1.5b market cap and divide by current market cap of roughly $30m and you get a 50x potential growth. So take today's share price of .10 multiple it by 50 and you get $5.
If you want to take a much further conversation approach, do the same with a 30x multiple and you'd still get a share price of $1.5
This right here is why I continue to accumulate shares as I approach 1m total. I am so confident in this stock and company and I'm putting my money behind my word. I'm in the industry and know how much these companies should be trading at..
Happy investing!
Way undervalued.. If anyone runs the revenue numbers against current market numbers it will be clear as day. I've ran the numbers and this should be trading north of .50 per share. They need to uplist to a senior exchange to get more visibility. Once they do this, stock should easily go north of $1+ if Y/Y revenue growth continues.
I'm loading up on shares sub .10 and now have close to 1m shares. This is one of the best ways to 10x your portfolio in a few years IMO.
If you think the recent Tesla run was massive, you haven't seen anything yet. If you take the same multiples of these tech startups going IPO (Snowflake for example trading at 130-150x revenue) Sonasoft should be trading in dollars.
All we need is to have SSFT uplist to a senior exchange which is still tbd in terms of timing.. Once this happens, we will get a lot more visibility and volume which will only help the stock since the earnings are so strong.
Cheers to dollars soon..
Big news coming next week! Just wait :)
yea.. someone fat fingered their sell.. they forgot an extra digit #ouch
I can't believe this has been flying under the radar for so long.. One day it will experience a massive breakout. I find it weird that the company refuses to put out PR and market themselves more in the industry.
Hi everyone! Long time holder here since 2017. Have been following this forum since then but finally decided to create an account. I'm usually always earlier to the party and have learned to be patient over the years. Early investor in TSLA stock (2013) before the world woke up and same with Bitcoin. Many others too..
I expect Sonasoft to be easily several dollars over the next 5 years. I've been purchasing shares on every major dip and have now accumulated close to a million shares. While it sucks to see Sonasoft not get the attention they deserve, just think of it as you get a head start to acquire more shares on the cheap until the rest of the world wakes up.
Lastly, I believe SSFT is not doing a lot of PR for a reason as they are trying to fly under the radar from competitors as this is fairly common in the startup world. It's too bad SSFT is on OTC Markets and not Nasdaq as they'd get a lot more volume and attention. I just hope management lives up to their promises and uplist soon while the market is on fire with tech. If not, management is missing out on a great opportunity to benefit its shareholders and follow their fiduciary responsibility as they should be doing.
Cheers to whatever the future holds.