BSmart
I know better than you what my motives are but I have met similar responses so often over a period of more than 20 years that I am not surprised about your reaction. What is the purpose of Ihub? The way I see it the purpose is to discuss stocks in the hope that optimistic and pessimistic points of view will give those who read the posts a better basis for investment decisions - is it a good idea to buy or to sell the stock involved? For shareholders it is extremely valuable to have a realistic view of the prospects of a stock, including both potential for appreciation and risks. My view is that both of us provide useful points of view in this context.
I know that the prevailing attitude among US investors or speculators seems to be to try to use Ihub to promote stocks. They are not interested in seeing unwelcome facts drawn attention to. I sometimes act as the devil's advocate even regarding stocks I am heavily invested in. It is useful for me an it should be useful for others to see if the optimists are able to argue convincingly that negative perspectives rest on a flimsy basis.
At the age of 81 I have been in the stock market for about 50 years. Although I am a European I have visited American companies and talked to managements. A few months ago I bought a little less than 100,000 shares in this stock which I was alerted to by S.A. Advisory. When I became convinced that SPZI is most likely a scam I sold most of my shares and increased my stake in t his stock to some 222,000 shares. The bulk of my tradeable US shares are now in this stock. I am therefore extremely interested in the most probable future prospects of IQST. I note that posters here seem to disregard totally my points of view. Thus I see little reason why my points of view will have much influence on the stock price.
I
One aspect of this stock I would like to draw attention to that I regard as very negative is net assets. This company has sustained losses to the tune of a few tens of million of dollars. It appears to have sold a lot of stock. Net assets were at the end of last year about 8 million dollars. 5 of those 8 million are goodwill. This suggests that IQST has paid much more for the acquisitions than the assets on their books. Apart from goodwill this company has net asets of only about 3 million dollars as against a market cap of more than 50 million dollars. The downside if things don't work out well is very deep.
I did not state that IQST is not now profitable. Based on the projections of management IQST will be barely profitable this year. Not long ago he projected a measly operating income (which is normally higher than net income) of 500,000 dollars per quarter this year despite the fact that income from the new acquisition will be included for 3 quarters this year as far as I remember. Revenues are expected to be about 300,000 million dollars. This implies a net profit margin this year of well below one percent. Since the gross profit margin is so low I cannot see how a decent bottom line can be reached in two or three years.
