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4 Key ADSV Presumptions & Thoughts to consider...

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stervc Member Level  Sunday, 12/01/19 01:18:27 PM
Re: stervc post# 19976
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4 Key ADSV Presumptions & Thoughts to consider...

Before reading any further, please understand that nothing below should be considered finite. What is officially released by ADSV is what should be considered finite. These thoughts below are nothing more than me killing some brain cells of some scenarios of what ”might” be coming here with ADSV.

1st Presumption -- I think it's fair to presume that Oyo is merging into ADSV.
2nd Presumption -- I think it's fair to presume that Oyo is buying the ADSV entity to only merge a portion of their company into ADSV.
3rd Presumption -- I think it's fair to presume that ADSV could be the vehicle chosen to use to get Oyo to the NASDAQ.
4th Presumption -- I think it's fair to presume that ADSV could be the vehicle chosen to use to get Oyo to be dual listed on OTC Markets for the US and one of the other major international exchanges overseas.

In my opinion, they can only do one of two things based on those four presumptions above. They can either put all or some of Oyo into ADSV as options. Now let's discuss some "Key Thoughts to consider on the Presumptions" a little further in detail below of which I humbly ask that everyone consider these thoughts to be speculative in nature...

Thoughts on the 1st Presumption
I think that one would need to ask... If Oyo is truly merging into ADSV, then why would Oyo take this rout of merging into a penny stock instead of taking the most popular known traditional IPO route? One could argue because it's cheaper, but because it's a $10 Billion company and I think money is not a problem with them, my argument would be because of relationships that exists between key personnel or parties involved. In my over 25+ years of investing within the market, I have seen that regardless to what any investor might think, relationships go a long way within the markets for certain huge deals maturing to close. Yea I know, they could miss out on raising hundreds of millions of dollars from taking the IPO route, but they are probably looking at it like who cares since they already have billions of dollars in cash already raised and could raise some billions more if they need to do so.

Thoughts on the 2nd Presumption
I think they possibly will bring only a portion of Oyo into ADSV... particularly the American portion that I believe is valued at $2 Billion based on the website updates as below you will see that it has the ADSV company name (Allied Security Innovations, Inc.) listed for some reason on that part of the website:


Still, I could live with that. For me, $2 Billion is the same as $10 Billion (LOL!). However, it's not the same to them. Oyo would likely do this to make sure that Oyo (the Parent Company) is protected just in case of any lawsuits pop up in the future or if any unknowingly or unsuspected legal event pops up that needs to be dealt with. This will allow Oyo (the Parent Company) the feasibility to disattach themselves from the subsidiary without encountering any potential major losses that would detriment towards the company.

As for the valuation, it doesn’t matter how they start. It matters where they would end. Oyo is a multi-billion dollar company. Regardless to how it enters the US markets, I believe liquidity would definitely exist up to its value that is placed into ADSV. When financials are released, the stock would be justified to exist to trade at whatever level the valuation dictates based on whatever portion they plut into ADSV. The stock valuation would exist regardless to either way they choose to go public… IPO or merger. Besides, nobody from an official capacity ever stated that Oyo was going to reverse merge into ADSV. It’s simply is something that has been talked about here within this forum as an option because of the website updates. Originally, I was under the mindset that all of Oyo would be coming into ADSV, after further research, I’m leaning towards only the American portion of Oyo will be coming into ADSV.

Also, with executing the merger option, the stock would have an opportunity to bring along a group of dedicated investors along the way creating wealth for those that never had such opportunity exist for such. With the IPO route, it’s really only helping the rich to get richer as people that invests from a lower-class portfolio would not be able and less likely to purchase shares trading at $5, $10, $20, etc. or so. Doing it like this, merging into ADSV, I think would bring good karma to the company for the wealth they would have created for a new family of investors versus doing an IPO to where small investors would be locked into the Laws of Diminishing Returns from a major market standpoint. The stock would soon become fairly oversaturated to where its growth would almost seem stagnant if a small time investor buys the stock then. In short for thought, just think about them merging into ADSV and the amount of shares one could buy under .01, .10, .50, or even $1.00+ if things materialize t be positioned for wealth versus the very few amount of shares one would be able to buy with it already opening up as an IPO already trading well into the dollars. It doesn’t matter how Oyo enters the public market, it will eventually trade at the value delivered to the public with its financials.

Important to note, from that part of the website above that has the ADSV name ( Allied Security Innovations, Inc.) spelled out, They have indicated that the two major investors for the US portion are Lightspeed Venture Partners and Sequoia Capital India. Before moving on to read the 3rd and 4th Presumptions, I think it’s important to talk about these two companies, Lightspeed Venture Partners and Sequoia Capital India to understand the magnitude of what could be getting ready to transpire and to understand that ADSV is in some very good hands.

Lightspeed Venture Partners

Lightspeed is worth over $4 Billion:
Lightspeed Venture Partners is an American venture capital firm focusing on early stage investments in the enterprise technology and consumer space. To date, the firm has backed more than 300 companies, including Snapchat (Snap Inc.), DoubleClick (acquired by Google after IPO), AppDynamics (acquired by Cisco for $3.7B), Brocade (BRCD), Nicira (acquired by VMware), Playdom (acquired, DIS), Pliant Technology (acquired, SanDisk), XtremeIO (acquired, EMC), Blue Nile (NILE), Fusion-io (FIO), Phone.com (OPWV), Informatica (INFA), Fastfox and Solazyme (SZYM).


Sequoia Capital India

Sequoia Capital India is worth $4.5 Billion:
Sequoia Capital has invested in over 250 companies since 1972, including Apple, Google, Oracle, PayPal, Stripe, Bird, YouTube, Instagram, Yahoo! and WhatsApp. The combined current public market value for these companies is over $1.4 trillion, equivalent to 22 percent of Nasdaq. Its portfolio is mainly in financial services, healthcare, outsourcing, and technology. As of 2017, they have exited in 68 initial public offerings and 203 acquisitions.



Thoughts on the 3rd Presumption
ADSV could be the vehicle they simply have chosen to use to get Oyo to meet minimum standards to be trading on the NASDAQ to enter the US Markets. I've seen this happen before years ago with 4 maybe 5 penny stocks that graduated to the NASDAQ and I think 2 or 3 of them were without needing to do a reverse split. Let's ”compare and contrast” the historical growth of two quick examples that I was able find quickly in my notes; CKEC (CMKC) and SPEA (CKXE) that went from being a penny stock to trading on the NASDAQ:

With CKEC (CMKC) - Penny Stock Graduating to NASDAQ
** Carmike Cinemas Inc. (CKEC) comes to my mind which made me go find some of my old research.

** CMKC, formerly CKECQ for those who remember, had come out of its reorganization from bankruptcy in Jan 2002 at .19 per share.

** CMKC went from .19 per share to $1.02 per share from its reorganization from bankruptcy.

** Then CMKC then soon went to $3.46 per share.

** Soon afterwards, CMKC went from $3.46 per share to opening at $17.75 per share on Feb 4, 2002 on the previously known OTCBB from trading on the pink sheets.

** Later it opened up under its new (old) ticker of CKEC on the NASDAQ on May 23, 2002 at $30.00+ per share. The bid never dropped on that day below $29.28 and the stock closed at $30.12 per share for that day.

** Later the stock drifted downwards to later stabilize at the $16.00+ per share for months.

** Then later, it was announced on Dec 21, 2016 that AMC Theatres (AMC Entertainment Holdings, Inc.) which trades on the NYSE under the ticker of AMC and is the largest Exhibitor in the U.S., Europe, and the World, had bought them out for $1.1 Billion:

With SPEA (CKXE) - Penny Stock Graduating to NASDAQ
SPEA started out at .007 per share although I’m not sure it was really noticed as many shares were not able to get purchased at that price as it went to .10 per share in one day on or about Dec 15, 2004.

** Then on Dec 16, 2004, SPEA released pre-market news of having entered into a definitive agreement to acquire a majority interest in some assets of Elvis Presley. SPEA opened up on that day at .37 per share to hit $7.50 per share and closed at $6.41 per share.

** Then on the next day, SPEA traded as high as $11.20 per share and closed at $9.10 per share.

** Later SPEA went on to trade as high as $23.40 per share.

** Then on Mar 1, 2005, SPEA changed its symbol to CKXE to be listed on NASDAQ.

** Then on Mar 17, 2005, SPEA/CKXE acquired "American Idol" TV show.

** Then on May 9, 2005, CKXE traded as high as $30.65 per share.

** Then on Jul 13, 2005, CKXE was added to the Russell 1000(R) Index.

** Then on Aug 5, 2005, CKXE had an AP Article write-up about the company.

** Then on Apr 11, 2006, CKXE acquired an 80% interest in the name, image, likeness and all other rights of publicity of Muhammad Ali.

** I'm not sure what happened to it later as I stopped following it as the years had gone by, but as you can see, it had a very nice journey.

I shared these thoughts to simply show proof that it is not beyond the realm of possibilities or that it is not irresponsible to believe that ADSV could achieve the goals that were achieved like those examples above.

Thoughts on the 4th Presumption
They can also be taking the route to be dual listed on OTC Markets for the US and one of the major overseas exchanges. Some companies still elect to remain on the OTC Markets within the US Markets. Here are some examples of what some more popular companies have chosen to do to compare and contrast. These include stocks such as Nestle Chocolate (NSRGF), Rolls-Royce Holdings PLC (RYCEY), Swisscom AG (SCMWY), and a variety of other stocks indicated within the post below that were trading at such time between the $9.00 to $100.00+ per share ranges. Read the link/post below in greater detail:

OTC Markets vs Fully Reporting SEC Status

In closing
Initially, I had thought that all of Oyo would be coming into ADSV via merger. Now, after doing more research, I believe that they will only be putting in their American portion of the company… basically their North American portion as this could include at some point in time in the future Canada and Mexico along with the US.

I truly believe that those who don’t see it now, will see it later.

For those who are just learning about ADSV, here are the updates to their website that were released after the market had closed this past Friday, Nov 29, 2019:




Exit Strategy & Etiquette Thoughts for a Stock
I never give investing advice; only my beliefs for risks in a stock.
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