Focus on the catalysts
Fade the noise and focus on the catalysts. I've never found a stock, particularly the ones with massive return potential, that didn't confront naysayers. In fact, if there weren't detractors, I would be concerned. As their concerns dissipate, they will either fade away or convert to buyers. Stocks almost always need to climb a wall of worry to get to their destination. Otherwise, you end up with a parabolic move that isn't sustainable and the stock lacks a solid investor base.
Keep the following in mind:
- The private funding round valuation in the Summer was likely well north of $250mm and that valuation has only appreciated thanks to $NOW and other comps trading higher. Remember, they targeted a 30mm GBP raise (~$37mm USD at the time).
- Private funding round was prior to the revelation of a number of value drivers: AI, US B2B database, Creditsafe etc. In fact, we know from the mission statement slide in the investor deck, which was likely prepared for the aforementioned funding round, that the mission has broadened significantly to include the "world market" for data services. What makes that broader vision credible? Starting the NY office, the aforementioned acquisitions, broader tech stack etc.
- We know from the COO's comments that they will unveil a data platform that targets not only B2B marketing, but data management in general. Bigger addressable market + credible management team= bigger market cap all else equal.
- Company obviously doesn't intend to stay on the OTC for long. To uplist, they will need a markedly higher stock price and market cap to be appealing to institutional investors. We have every reason to believe that Mr. Stephenson and their accomplished CFO understand this and will do the appropriate things to get there. They have taken a cautious, methodical approach to this point while trying to keep CLHI shareholders informed. The cryptic tweets have been frustrating at times, but they were necessary given the hurdles that needed to be overcome.
- Expanded investor set. Let's not underestimate that many US brokers (like that small one Fidelity:)) simply won't allow their customers to buy this stock. That will change soon.
I'm looking forward to seeing the floodgates open once the DE filings hit and the other dominoes start falling.
