You never know what they may come up with next and we do know about some things in the works. But even besides that maybe the thing to watch for that could have great affect on the share price is simply if they can or if they will start reporting profits off the existing business.
As much as we are loving the action, and $.50 sure feels like a great symbolic marker to me, the affect for us is only part of the story. The other side, and I have mentioned before, is the higher this goes the stronger the company gets. That is in that the value this creates for them, and thus for us.
They appear to have what's left of the debt in a very manageable position. And if they wanted to clear it all out they could do it for far fewer shares than it was. Right now, like more than 6 times less shares than it would have taken. And if they see a great acquisition target, they are poised to buy it with far less affect on shareholder value while simultaneously creating likely far more value.
Really though, they know as we do that the greater the market cap gets the more power that brings. If I were them I wouldn't tap in to this any sooner than I just had to, and let it ride on to wherever it goes. Once the market has pretty much set a stable value then take advantage of that. But the more it goes up the more purchasing power to the company.
For those that were not here a few months ago, the company was in so much more precarious position then, and seemed no end of shares of very little cash. So maybe the market has decided the company finally got it all under control and is going to be fine. And maybe once that got settled the next thing is for the market to decide what the market cap should be for this company, with these revenues, very little debt, diversified, and growing. 1x sales? 2x sales? 3, 5, 10?
So maybe what we are witnessing is the market figuring it out, been a pretty nice ride thus far. Then once it reaches its equilibrium then we can see where the company goes. This is why I am not too worried if takes off into higher levels. I agree with some that slow steady progress is preferred, but just thinking maybe we got to get to the correct level for this company then look at slow and steady.
I'll use our old friend ALPP once again as the example. It went on a path to near $5 and then back down to around $2.5 before taking off again. But I think that may be an example of a stock reaching its new level, in their case say above $2 then working out were it goes from there. I can't say what it is or will be for IQST. Let's see what happens, but it's been a pretty fun little ride the last couple months, and apparently, at least to today, the market has been saying the market cap should be higher.
