Money 101

[HighYieldStocks]

********** Epoxy starting to look interesting **********

Special Report: $EPXY +500% to 1000% possible short_term

Here’s ihub link to the Epoxy App:

http://investorshub.advfn.com/Epoxy-Inc-EPXY-13309/

Further links right here:

Homepage: http://epoxyapp.com/

10-K Filing from April 14, 2016
http://www.otcmarkets.com/edgar/GetFilingHtml…

and also:
http://www.otcmarkets.com/stock/EPXY/filings



In 2014, shares of the Tech Startup Epoxy, Inc. Gift Cards/Loyalty Cards (EPXY, ... in Germany: Stuttgart, etc.) had a tremendous rally of 2900% within just 9 months! But during the second half of 2015 its stock crashed very badly. As once things on the upside where overly exaggerated now everything on the downside has been greatly overdone. With a market cap of less than half a million this stock seems extremely undervalue. Short term it’s possible that it may gain 500% to 1000% just to catch up with basic a market valuation for a tech startup like Epoxy.

During 2014, shares of the tech startup Epoxy, Inc. (EPXY) experienced a huge rally of over 2900% within just 9 months. Meaning, every thousand bucks invested turned into $29,000. But the second half of 2015 wasn’t so favorable for this stock as it lost almost 99% of its value. The market cap crashed from $32 million to barely $400,000. The stocks trades several million shares on a daily basis. At $0.002 it looks like a classic penny stock. For only $2,000 you can buy a million shares. Virtually every other company would have declared bankruptcy. But Epoxy, Inc. didn’t and instead came up with a surprising 10-K filing on April 14,2016

Financial Obligations were reduced by 70%

Surprises can be found in the 10-K filing from April 14, 2016. In the filing we read that Epoxy was able to reduce it’s financial obligations by 70%. Also, it seems that this is the first filing in which the actual facts of the company were published, which is very good in order to have transparency regarding the company’s operations. There’s only one employee at Epoxy and it’s David “Dave” Gasparine who is also its CEO, CFO, etc.

At first glance, Epoxy looks like a one-man show, but there’s also a well-paid board of directors. For ongoing operations Epoxy does a lot of outsourcing and it has hired and continues to hire independent consultants, sales people, marketing companies and tech firms. Most are paid with restricted shares, meaning these shares are virtually frozen for a long period and can’t be sold.

The CEO who earned almost a Million bucks in 2015

The majority of the CEO compensation was paid through restricted preferred stock. These shares have numerous restrictions and require a long-term holding period. Pratically, shares under this agreement may often take years before these can be sold in the open market. Apparently, management has not the least interest in selling any shares as the company ownership of the CEO and board have continuously increased by a large measure also in 2015.

Nevertheless an annual CEO compensation of almost $1 million is rather steep. The total savings though, even as there were higher expenditures, with clever financial acumen still resulted in a 70% reduction of its outstanding financial obligations. Also, expenses for the company car were 50% less in 2015 vs. 2014. Bottom line and to somehow get a grip of this financial maneuvering, it is a fact that Epoxy is busy in the development and the distribution of their EpoxyApp. Based on their recent 10-K filing is targeting a total U.S. expansion within 5 years, and a global expansion within 10 years.

The large Investors and the major capital guys behind Epoxy are all long-term Investors

Based on contractual agreements, all of the largest investors and the major capital guys behind Epoxy are long-term investors. Meaning, most of their “restricted” shares can only be sold based on certain conditions in a few years. One of the board members has warrants for 3 Cents a share which need to be exercised within 2 years of issuance. This share price is currently fifteen times higher than its current stock price. Meaning, apparently it is expected that the stock price will improve significantly in the near future. With the current market cap of only $400,000 it is evident that this stock is deeply undervalued. Even for a basic early tech startup a valuation of at least 5-10 times higher is absolutely justified. The explanation is that the current stock price was just totally overdone on the downside just as the price on the upside was totally overdone back in January 2015 when the stock hit 18 Cents.

The huge potential for Epoxy

Obviously any startup is loaded with speculation. But if you look at Epoxy the company is persistent and is totally convinced of its success. Usually the charts wouldn’t be of great importance for a company like this, but even on a technical basis it looks like that the stock has made a solid bottom and is already indicated a slight uptrend. We expect a strong rebound in this stock.

As mentioned before we think that at the current level of only $0.002 we should see at least a Penny in the not too distant future. This would mean an increase of around 400%-500%. Over the coming months we may easily see 2-3 Cents which is reflecting an upward potential of over 1000%. Back in 2014, the stock rose from $0.006 to around 6 Cents within 3 months (from Mid April 2014 to early Juli 2014, ... so a 1000% gain, ... and then up to around 18 Cents within another 6 months. So a total of a 2900% gain. Every invested thousand bucks became a cool $29,000 within just 9 months.

All of the EpoxyApp platform has been revamped and is functioning without a hitch now. This was also a major expenditure last year and it also took a long time to go about it. But now Epoxy is appropriately positioned to market their App to the market without any obstacles.

Epoxy has added new locations to the EpoxyApp and is also interested in placing the app into larger retail/restaurant chains. With some diligence Epoxy will most likely hire the distribution experts to get the app adopted with the larger chains. EpoxyApp by itself is definitely an excellent app, no question about it. Every retailer, restaurant chain and gas station, beauty salon, etc. should take advantage of EpoxyApp. Also for users EpoxyApp has many benefits and advantages as consumers won’t need to bring physical punch cards and gift cards with them anymore. Everything (punch cards, reward points and gift cards) are safely and quickly accessible on the smartphone via the EpoxyApp.

Great Volatility for Traders

Another interesting aspect is that during and after the formation of a bottom the volatility in a stock is on the increase. Weekly trading gains of 30% – 80% are no rarity in this stock. Epoxy’s Intraday record was far beyond 100%.
Possible Short Squeeze

Based on the OTC Short Report millions and millions of Epoxy shares have been sold short over the past year or so. This also contributed to the extreme stock price crash in Epoxy. Even as a number of large short positions can be covered through the share conversions of Convertible Noteholders, there are still huge short positions which will have to be covered in the market. And even at sharply discounted prices, there are actually not that many shares in the public float. With the purchase of several million shares the stock could easily double within a day, or possibly quintuple within a week of increased buying activity. Of course, again this is a hot speculative stock, but the law of gravity is still applicable. And this could be very beneficial to the stock price of Epoxy shares. Here’s the link to the OTC Short Report for Epoxy shares:
http://otcshortreport.com/index.php?index=EPXY

Regarding a potential Takeover, Merger, etc.

Epoxy, Inc. has provisions to prevent a takeover or a merger of the company unless Epoxy management is in agreement with such a transaction. But that’s not necessarily a bad thing, because this provision will definitely help to generate a higher company valuation and therefore stock price when a takeover or merger comes into play. EpoxyApp has no monopoly, but it is one of the technically best apps in its sector of digital punch cards, reward points and gift cards.

Based on management’s behavior a reverse stock split seems to be off the table for now as they just increased the authorized number of shares to 900 million. The stock is currently traded on the OTC pink sheet, but once the 1-Penny price is reached again the stock will most likely trade on the OTCQB once again. Epoxy also adheres to publication standards like regularly listed companies and with that offers plenty of transparency.

Final Word

Epoxy is a hot speculative stock just like it was back then in April 2014 when we first introduced the company. Back in 2014, the stock soared 2900% within just 9 months. Basically, Epoxy is not really a typical penny stock, but instead it’s a first-class tech startup that just went through a lot of obstacles to get things right. And that isn’t unusual. EpoxyApp has improved constantly and is well received in its market segment. With a little bit of expertise and skill the larger chains could very well adopt EpoxyApp as some smaller chains have already done. The download and user numbers should therefore increase and rise significantly once larger retail/restaurant chains adopt the app.

Apparently, the number of users has increased once again over the past year. Currently ecommerce based users are valued an average of $800 per user with some on the lower end at $500 and at the top of the ladder at $2,500. This will result in increased market cap. In comparison, Epoxy is currently definitely undervalued.

We think that the OTC in the U.S. offers the most transparent, liquid and accurate pricing for this stock. Investors and traders may also check out Epoxy stock in Germany if they prefer.