November 5, 2021 -- InvestorsHub NewsWire -- via Hawk Point
iQSTEL Inc.’s (OTCQX:IQST)
market cap of $62M is absurdly low. In fact, 2021 revenues, if they
continue on the current trajectory, could surpass the entire market
cap by the end of the year. So, why the disconnect? There’s a
relatively simple answer. IQST is under the radar of most and lacks
institutional coverage provided by pay-to-play analysts. Still,
that’s not entirely bad news. With value staring investors in the
face, it also exposes the opportunity to invest in a rapidly
growing diversified company at relatively ground floor prices.
Better yet, investors would be buying into a company in a
hyper-growth mode whose value proposition is made strong from
revenue streams from partnerships involving companies as small as
micro-caps to Fortune 500 behemoths. The better news is that
momentum is on its side. Last month, IQST reported another robust
revenue update and confirmed guidance to potentially surpass $60
million in revenues by the end of 2021.
The most important part of that update is that IQST is expanding
its business interests rapidly and efficiently. Its recent
financials proved that point.
Rapid Growth, Accretive To Balance Sheet
In fact, IQST’s most recent financials not only show a company
in motion but one that is positioned for potentially exponential
growth. The company is entirely debt-free and, more importantly,
eliminated all toxic debts, convertible loans, and warrant
obligations. Moreover, beyond strengthening its balance sheet, that
accomplishment positions them ideally to uplist to the NASDAQ
markets as early as Q1 of next year. That’s their
But more than debt was eliminated. From an assets perspective,
IQST increased those by about 33% to roughly $7.4 million. Even
better, while IQST did sell some equity to accelerate its strategic
initiatives, the dilutive consequence should have less impact than
many might expect. In fact, IQST’s shareholder equity actually
increased over the first half of the year by nearly $6 million,
reaching positive equity in the process.
Now, with those accomplishments booked, IQST’s next initiative
is to capitalize on a strengthening global telecom, Fintech, and EV
market to increase its margins. And as global markets recover from
a debilitating pandemic, they are ideally positioned to accomplish
And if they can do so, expect share prices to surge sooner
rather than later. Keep in mind, they already have the assets in
place to drive operating margins higher by maximizing the value of
its subsidiary interests.
Maximizing Subsidiary Value Through
That’s happening now. IQST management is actively reorganizing
its subsidiary operations to capitalize on overlapping market
opportunities where the services of one subsidiary can be sold into
the existing customer base of another and vice versa. That mission
drives revenues and makes income more impactful by reducing
subsidiary redundancies to achieve operational efficiencies and
improve operating margins.
Success in doing so may cause history to repeat. In 2020,
investors responded enthusiastically to its expansion by sending
share prices from $0.05 to $2.00. While the price has since
retraced to the $.0.45 level, it’s important to note that the
company is better positioned operationally today compared to when
shares were appreciably higher. Further, to prepare for a more
senior market listing, IQST has also enhanced its public reporting
standards by implementing an independent board of directors, moving
from the OTC Pink reporting standard to the OTCBB, and then
recently to the OTCQX. Thus, on all fronts, IQST is laying the
groundwork to justify its expected surge.
But, having the pieces in place is one part of the equation.
They are also putting the substantiating evidence front and center
to prove the current valuation disconnect. And rather than spend
2000 words providing that information, a simple click to its SEC
filings provides all the necessary information to indicate that
IQST has outgrown its current valuation. It presents a bullish case
for investment consideration.
And while there’s plenty in those filings, there’s more to like
from a near-term catalyst perspective.
Planned NASDAQ Uplist
The most important catalyst in the coming weeks may have more to
do with its planned NASDAQ uplist than with record-setting
revenues. Indeed, it could generate substantial interest and open
the investment opportunity to an entirely new investor class.
Remember, many brokerage houses exclude trading in many OTC stocks.
And while IQST trades on the QX, there are still some limitations.
An uplist removes those barriers.
Moreover, if they get approved, expect that its current 1X
expected 2021 revenues multiple will be met with broad investor
interest. An update on margin expansion could add an additional
multiple as well. Here’s better news. It wouldn’t be surprising to
see a definitive NASDAQ uplisting announcement during Q1 2022 after
the company publishes its audited annual report. There’s still more
Another catalyst could come ahead of its listing application if
IQST announces entering a relationship with a sponsoring investment
bank for the planned uplisting. An announcement on that front
could, in fact, be imminent. Historically, news of that nature has
a significant impact on company valuations.
Seizing Short And Long-Term Opportunity
Thus, IQST is attractive to both short and long-term traders.
And while a perfect storm of business opportunity supports the
long-term perspective, an appreciable increase in share price could
come sooner from IQST having less than 150 million shares
outstanding, no convertible debt on the books, and $60 million in
audited annual revenue anticipated to be reported for
Moreover, if IQST does announce a relationship with a sponsoring
investment bank, IQST’s share price could reach the minimum listing
requirement without a recapitalization. That is not only likely but
also would represent a more than 100% increase from current levels.
Hence, with momentum at its back and several potential catalysts
ahead, IQST stock at these levels may present a timely proposition.
Better still, acting on that consideration takes advantage of an
apparent and massive valuation disconnect.
Disclaimers: Hawk Point Media Group, LLC. (Hawk Point Media)
is responsible for the production and distribution of this content.
Hawk Point Media is not operated by a licensed broker, a dealer, or
a registered investment adviser. It should be expressly understood
that under no circumstances does any information published herein
represent a recommendation to buy or sell a security. Our
reports/releases are a commercial advertisement and are for general
information purposes ONLY. We are engaged in the business of
marketing and advertising companies for monetary compensation.
Never invest in any stock featured on our site or emails unless you
can afford to lose your entire investment. The information made
available by Hawk Point Media is not intended to be, nor does it
constitute, investment advice or recommendations. The contributors
may buy and sell securities before and after any particular
article, report and publication. In no event shall Hawk Point Media
be liable to any member, guest or third party for any damages of
any kind arising out of the use of any content or other material
published or made available by Hawk Point Media, including, without
limitation, any investment losses, lost profits, lost opportunity,
special, incidental, indirect, consequential or punitive damages.
Past performance is a poor indicator of future performance. The
information in this video, article, and in its related newsletters,
is not intended to be, nor does it constitute, investment advice or
recommendations. Hawk Point Media strongly urges you conduct a
complete and independent investigation of the respective companies
and consideration of all pertinent risks. Readers are advised to
review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider
reports, Forms 3, 4, 5 Schedule 13D. For some content, Hawk Point
Media, its authors, contributors, or its agents, may be compensated
for preparing research, video graphics, and editorial content. Hawk
Point Media LLC has been compensated up to four-thousand dollars
cash via wire transfer by a third party to prepare and syndicate
content for iQSTEL, Inc.. for a one-month period. As part of that
content, readers, subscribers, and website viewers, are expected to
read the full disclaimers and financial disclosures statement that
is part of this content.
The Private Securities Litigation Reform Act of 1995
provides investors a safe harbor in regard to forward-looking
statements. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, goals, assumptions or future events or performance are
not statements of historical fact may be forward looking
statements. Forward looking statements are based on expectations,
estimates, and projections at the time the statements are made that
involve a number of risks and uncertainties which could cause
actual results or events to differ materially from those presently
anticipated. Forward looking statements in this action may be
identified through use of words such as projects, foresee, expects,
will, anticipates, estimates, believes, understands, or that by
statements indicating certain actions & quote; may, could, or
might occur. Understand there is no guarantee past performance will
be indicative of future results.Investing in micro-cap and growth
securities is highly speculative and carries an extremely high
degree of risk. It is possible that an investors investment may be
lost or impaired due to the speculative nature of the companies
Source - https://www.benzinga.com/pressreleases/21/11/ab23851289/iqstel-inc-has-catalysts-on-deck-that-expose-a-valuation-disconnect-of-roughly-100-heres-why-that
Other stocks on the move include
SOURCE: Hawk Point Media
Innovation Pharmaceuticals (PK) (USOTC:IPIX)
Historical Stock Chart
From Apr 2023 to May 2023
Innovation Pharmaceuticals (PK) (USOTC:IPIX)
Historical Stock Chart
From May 2022 to May 2023