INTK posted a tremendous amount of good news from the end of December to the middle of February (see my other posts for recaps). As a result, the share price skyrocketed, from $0.008/share on December 20, 2021 to $0.043/share on February 17, 2022, a staggering 403.75% gain in less than two months. Was the increase warranted? In my opinion yes.
During this two month period the company announced numerous deals that have the potential to generate substantial revenue, which I've summarized below.
Energy Protect: Potential annual revenue of $64 million+
Railroad Tank Car Industry: Total revenue of $325.5 million+ (annual revenue unknown)
Petrochemical Tank Farm: Potential revenue of $39.38 million+ (annual revenue unknown)
These are deals that, according to the company, should start generating revenue in FY2022. Note that I excluded several items like TalkingPaint, the company's oil spill neutralization product, etc. These products have potential, but at this point there are no deals in place so I'm considering their 2022 potential revenue to be $0.
Looking at just the three revenue streams above, let's assume the railroad tank car potential annual revenue is 1/10 of $325.5 million, or $32.5 million, and the petrochemical tank farm potential annual revenue is also 1/10 of the $39.38 million, or $3.938 million. That gives us total potential 2022 annual revenue of $100.438 million. Let's also assume that INTK once again is over-promising and will under-deliver on its revenue figures. I'll take this into account by reducing their 2022 potential revenue estimates by 60%, which still leaves me with $40.175 million in potential annual revenue for 2022.
Using these figures let's say their low-end estimates for 2022 are $40.175 million and the high-end is $100.438 million. Stop and think about that for a minute. INTK had revenue of $229,758 in 2020, and we're talking about $40.175 million in revenue being the low estimate for 2022. That's an increase of over 17,000%!
Since mid-February we've seen the stock price gradually decline. Why? I think the simple answer is that there hasn't been nearly the amount of newsworthy press releases or tweets as there were during the two-month period referenced above, and there have been some missteps by the company the past four weeks.
On February 14, 2022 the company issued a press release regarding the railroad tank car deal. The press release included the following, "Additional details on the new partner will be disclosed in an upcoming joint press release." Nearly 4 weeks later, and no joint press release.
On February 25, 2022 the company teased shareholders when it tweeted a "major shareholder press release" was schedule for 2/28/2022. Well, the press release was a major disappointment, and was basically just a summary of all their tweets, conference calls, and press releases that had occurred in the past 30-45 days. I don't think there was any new information in that press release, and in my opinion that was an epic fail on the part of the company. Don't announce a major press release unless you have something new, and significant, to provide to shareholders.
On March 1, 2022 the company sent a confusing tweet about partnering with Kolorgen Ltd to manufacture EPX-H20 in Turkey. Somehow this is supposed to generate $10 million - $15 million in annual revenue "starting now". This was another fail by INTK. There is no logical relationship between someone manufacturing your product, and revenue. Did the partnership with Kolorgen include a deal to us EPX-H20 on their equipment? On equipment of their customers? How exactly is this deal generating revenue? This is the type of press release the stock bashers will point to and say, "This is a typical INTK B.S. press release" and quite frankly I don't blame them because it doesn't make sense.
Note to INTK, your shareholders want details on your deals (How much product has the client committed to ordering? When will the orders start coming in? Will the orders be monthly, quarterly, annually? How much time will there be between the deal being signed, and the first shipment of INTK's product? Does INTK have the manufacturing capability to meet the increased demand for its products, Etc.) The more transparent you are, and more details you provide, the less fuel you provide to the stock bashers, and the more confident your shareholders, and potential investors will be.
On March 8, 2022 the company hosted a webinar with an expert panel from the UK. The webinar was touted as an opportunity to learn about the size of the UK market, INTK's UK positioning, and learn which companies they might be penetrating. I listened to the webinar and I don't believe any of these items were addressed. The webinar was essentially a discussion on how rising energy costs will lead to increased demand for INTK products. The discussion was all over the place and didn't really focus on INTK, INTK's products, or provide us with any additional information on how things were progressing in the EU, Italy or UK for INTK. Yet another dud for INTK.
But then on March 8, 2022 we also got a tweet about Royal Caribbean and another potential revenue stream. It says, "Once the paperwork process is completed...all ships will begin adopting it. 61 ships. Project 9 million revenue over 3 years." Clear as mud. Once the paperwork is completed all ships will begin adopting what? Which product are they using? What is it being used on (i.e. the entire exterior of the ship, certain parts of the interior)? When will orders start? 61 ships seems like a lot. Is it $9 million in revenue per year, or $9 million total ($3 million per year)?
And finally on March 9, 2022 we were back to completely vague and nonsensical tweets. "Our oil/gas salesman, hired Monday...In Houston now meeting his Rolodex & closing deals." Riiight. So someone you hired two days ago is already closing deals with companies in his rolodex? That's questionable.
At the end of the day the company is going to have to prove to its shareholders, potential investors, and the market in general, that it can make good on all its promises. This starts with:
1) Staying current, and submitting its financials on time. The company's 2021 annual report is due to OTC no later than 90 days after the end of the fiscal year, so we should have full year 2021 reports by the end of March 2022. Quarterly reports are due no later than 45 days after the end of the quarter, so we should have the 2022 Q1 report by the middle of May 2022.
2) Uplisting to a more senior OTC exchange. The company has been touting this for years. It's about time they actually do it.
3) Providing details and clarity on its sales, and deals.
I'm long INTK and I believe it will make shareholders a lot of money in the next 12-24 months. My advice to everyone is to be patient. The sales to the EU and Italy will pick up in the next few months. Remember, the product can only be applied to the exterior of buildings when it's consistently above a certain temperature, otherwise it will dry white vs. clear. As we move into the Spring we should see some nice sized orders coming in, which will drive the share price higher. Take a deep breath, ignore the doubters, and buy the dips! Good luck to all the longs.
AI
