OLB Group Inc (OLB)

[Prudent Capitalist]

I have found that the best way to communicate with the company and its investor relations department is to e-mail [e-mail]. I sent an e-mail inquiry in earlier this week and received the following:

OLB Group Investment Highlights

• No corporate debt
• Projects positive cash flow by end of year
• $4 million cash on hand (as of March 31,2022)
• Diversified revenue sources (eCommerce merchant services and Bitcoin mining)
• 98% of revenue from profitable eCommerce operations
• Annualized revenue run rate currently at $36 Million vs. 2021 revenue of $9.6 Million
• Market valuation less than $14 Million and Price to Sales Ratio of 0.4 (as of 7/ 7/22)
• eCommerce and Bitcoin mining annualized revenue run rate projected at $38-$40 Million by Fourth Quarter.

I also listened to the HC Wainwright presentation and the last earnings call, and was struck by the fact that the only reason OLB reported a loss for the last quarter was due to the required non-cash depreciation and amortization of the acquired Bitcoin AntMiner machines. Without that non-cash item OLB would have reported a profit. In hindsight the entry into Bitcoin mining was ill-timed, but that is only 2% of OLB's business. Unfortunately there is a perception problem, with many viewing OLB as a crypto stock now. That is nonsense..

But on a valuation basis OLB is hugely undervalued at just .4 time Sales. At 1 time sales the stock would be at $2 and at 2 times sales OLB would be trading for $4.00 per share. 2 times sales is a reasonable conservative valuation for any stock.

And. let's remember the CBD merchants acquisition in the fintech payments processing area was just finalized at the end of 2021, so the recent 2nd quarter should be the first quarter to show huge revenue there. Expecting record revenues in the 2nd quarter, which report is due out in a few weeks.

For the record, I am strongly considering doubling up my investment down here well under $1.00, or maybe even tripling, but OLB shares are running up away from me today with the last trade at .99 or +8.79%.