AIAdvertising Inc (AIAD)

[Tengri]

Is CLWD trading at a fair or discount value?

Let us look at what’s been happening as of lately…

On August 1st 2017, CloudCommerce announces the closing of a $9M stock transaction to acquire certain assets (aka Parscale Creative) spun out of a digital marketing firm, Giles-Parscale Inc. http://cloudcommerce.com/cloudcommerce-and-parscale-creative-announce-merger-agreement/

The following day, CloudCommerce releases an SEC filing detailing out the terms of the transaction with Parscale Creative’s principal owner, Brad Parscale. As part of the deal, Brad (i) receives 90,000 shares Series D Convertible Preferred Stock with stated value of $100 per share; (ii) agrees to a lock-up period preventing him from selling his CLWD shares for 2 years after close of transaction; and (iii) agrees to a non-compete preventing him from leaving and competing against CLWD for 3 years.
https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12204500

Given these agreed upon growth incentives and exit restrictions, it appears Brad is eager to make an impact on CLWD’s financial performance.. But how well can we expect him to perform?

Brad is best known for his role as Digital Director of Donald Trump since 2016…
https://www.wired.com/2016/08/man-behind-trumps-bid-finally-take-digital-seriously/

Brad began working for the Trump Organization in 2011, providing website development and digital media strategy services for Trump International Realty, and subsequently working on projects for Trump Winery and the Eric Trump Foundation…
http://srfkllp.com/sichenzia-ross-ference-kesner-llp-represents-cloudcommerce-inc-acquisition-parscale-creative-inc/

In large part due to services for the Trump’s Presidential Campaign, Brad generated over $90 million in revenues in 2016 (representing 4782% topline growth since 2014) for Giles-Parscale Inc https://www.bizjournals.com/sanantonio/news/2017/06/29/fast-track-san-antonios-fastest-growing-private.html#g51

If recent history is any indication of future performance, Parscale and his team may have what it takes to generate millions (if not tens of millions) of new revenues for CLWD...

Prior to the acquisition of Parscale Creative, CLWD reported to the SEC that it was generating roughly $2M revenues for FY 2016 and $3.4M in the first three quarters of 2017
http://www.otcmarkets.com/stock/CLWD/financials#

For speculation… let’s assume CLWD closed its FY 2017 with $4M revenues and Parscale Creative merged in an additional $4-6M, thus yielding a run rate of $8-10M total revenues

As of Sep 1st 2017, the market is valuing CLWD at $5M – less than 1x the run rate projection.
http://www.otcmarkets.com/stock/CLWD/profile

In sum… the market might be materially underpricing the value of recently acquired assets

P.S. Good luck to those entering or accumulating more… the CLWD float is as tight as a drum!