I understand the apprehension that goes along with investing in the OTC markets. Huge swings in share price movement on any given day can be quite unsettling when you’re invested in an equity. You also have to be realistic and recognize it’s the type of arena you are participating within.
Most companies share prices in the OTC are driven by perception minus company fundamentals which you would normally apply to making a confident decision by incorporating standard market metrics that have proven to be effective holding up through the test of time in the financial markets. Unfortunately, the majority of stocks in the OTC don’t come close to any qualifying standards (generated revenues) where this application can be applied which magnifies risk.
Some degree of confidence can be found in CLWD (a very transparent penny stock exempt company soon to reach qualifying standards for the OTCQB) represented by a legitimate clientele base that is publicized through permission via the CLWD website describing the services they have provided for the companies to help them better accomplish their goals. CLWD’s revenue stream (11-13M annual—verified through 10Q/10K submission to the SEC) has been very consistent each quarter even when taking into account the effects of the Covid virus which has had adverse effects on the majority of businesses/companies/corporations revenue totals and profit margins. Really magnifying the effectiveness of their “proprietary” flagship product SWARM. This particular product has been in existence for only a short period of time and has firmly positioned itself as a difference maker within the industry. CLWD’s management has demonstrated the ability to stay a step ahead by integrating game changing enhancements to layers across the entire SWARM tech stack that in time could be recognized as the industry leading cloud hosted software platform of its kind. The wherewithal of being ready to enhance a proven product through additional sources of capital is vital in maintaining and adding market share within an industry (globally over half a trillion in spending) that is becoming a standard in the way commerce is driven and as a result will continue to grow substantially year after year.
I’ve always been intrigued by the way companies craft masterplans partly from the intent of growing the company but also from the perception that can be created in a potential investors mind. My next comment comes with no political affiliation what-so-ever. It represents connotation from a pure investment stand point. With that being said, I’ve always felt CLWD’s connections have been very formidable from Mr. Boden & Mr. Van Noy to Mr. Parscales to the previous President to the Corporate World. This type of stair-step exposure creates a large pool of associated resources with deep pockets and a wealth of experience when maneuvering within the gray areas of compliance enabling a company to be efficient in dictating direction in-turn maximizing outcomes.
All the Masterplan 2021 and beyond ingredients appear to be in place: state-of-the-art “proprietary” software product/services that has established a solid clientele base; servicing a half a trillion-dollar industry; a respectable revenue stream with a current price-to-sales ratio of 4 ½; employee option plan over an extended period; a shelf prospectus to be used to raise capital up to an aggregate amount of 100M enabling them to grow the company at a much faster rate.
I would like to add those entities that held the share price down so masterfully for an extended period before the spike will be waiting to buy up the shares on Monday of those short-termers who suffer from the addictive quality of convincing themselves the sky is falling, even though it isn’t, just to satisfy the need to flip in and out of a security within a day or week timeframe. Let’s see... leading up to June 15th 2020 CLWD could have been bought in the .0013 to .0018 range and on both July 6th and August 10th of 2020 it reached an intraday high of .0163 equating to a 1,000% gain—throughout the majority of October 2020 CLWD shares could have been purchased in the .0045-.0060 and on... well I guess I really don’t need to state the rest we’re all able to see where the share price is currently stationed. Thousands of percentage points gained on your investment within two-to-three-month blocks of time.
CLWD management over the last six months has made its direction very clear and it’s an investment that will definitely payoff over an extended period of time even at its current levels.
