(OTCMKTS: IQST) Can This Micro Tech Soar with the New Listing?
Stock Ticker –
Stock Name and Stock Trading Exchange Platform –
IQSTEL – OTC Markets Group (OTCMKTS: $IQST)
Stock Sector –
IQST is a publicly traded mini-cap company in the US OTC markets. It engages in the provision of technology and telecommunication services and products.
It is a fourfold package comprised of Fintech, Blockchain, Telecommunications, and Electric vehicles (EVs).
Telecommunications, its keystone, involves long-distance voice services for telecom carriers and submarine fiber optic network capacity for data carriers.
Bchain LLC is its Blockchain subsidiary, aiming to develop blockchain ledger and smart contracts solutions, to improve efficiency in the telecom sector.
The company is similarly aggressive in Fintech operating as Global money, which works with leading partners to facilitate smooth financial services like credit cards etc.
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EVOSS in its mobility segment intends to become the leading Electric motorcycle producer in Latin America and Europe.
IQST was founded in 2008 by Mr. Leandro Iglesias and Mr. Miguel Scavo. It is headquartered in Florida, US.
Recent Most Important News about IQST
IQST has hit headlines with a confirmed list in the NASDAQ, preparations are underway, and this has stirred a lot of excitement from both the company and its holders.
This could send the stock price upwards as massive capital rushes into the stock.
The company has also announced the launch of a new mobile number portability application, with the market said to be worth about $530M.
It has been involved in two acquisitions this year namely Smartbiz and Whisl, both micro telecom operators.
It’s aggressive in the telecommunication sector and is pondering making yet another purchase of a fiber-optics company in the US.
IQST also hinted that it’s working with an undisclosed fortune 500 company, providing its smart tank IoT devices to the company.
It has been revealed that the mentioned company is BASF, a giant chemical company.
The company restructured its investment agreement for the purchase of its common stock. The move has been hailed positively showing the confidence of the team in the stock.
The company announced its Q2 results in July 2022, growth was upbeat over the quarter.
Current Position of IQST –
IQST’s underlying business has been on an uptrend despite the bear market.
2022 is unfolding to be one worst market in years with record inflation, rising interest rates, and energy troubles to mention a few.
The company is growing steadily and fast approaching net positive margins. Its market capitalization has fallen greatly to a low of $38m as per the latest data.
Albeit there still exists excellent companies out there that are making huge strides and could be an exception to the faltering markets. IQST is one such group.
With a presence in over 19 countries across Europe, and North and South America, it is becoming an established player in these regions. It has a staff of 70 across the globe.
Recent developments have seen the stock rally as bullish news hit the market. First was the confirmed Nasdaq listing, which is arguably the best tech index in the globe.
Its apex segments remain telecom and IoT registered superb figures as highlighted by the company in their updates.
These segments are already bringing in significant gains that help fund the growth of its other ventures.
Considering the tumultuous times IQST exceeded expectations by continuing to grow. PubCo Insight Analysis opines:
Against all odds, IQST has not only survived but thrived during one of the most challenging times in recent history. We are excited about what the future holds for IQST.
The pandemic was a blessing for tech companies as they saw traffic in the usage of both software and hardware products.
Telecommunications saw a boom as it was the only means of connecting both businesses and individuals.
EVOSS, the electric motorcycle ad cars production segment of the company was launched seeing the demand in the space.
So far, it is still in the development of a new car model, with several motorcycles successfully produced.
Electric mobility is the future and IQST is looking to penetrate this niche. It already received a huge offer for the acquisition of the segment which it declined.
This shed light on the potential of the segment and the team is debating a spin-off to a single entity.
EVOSS is also in the process of negotiating an agreement with a Chinese manufacturer to produce its EV motorcycles.
Its Fintech platform is also growing steadily with partners such as MasterCard & Visa onboard.
Global money was initiated last year by the company which foresees demand in the sector. It has penned 3 partnerships in the US to tap into the market.
It continues to work with ENAS, the largest chemical corporation in the world, and is in talks with one of the largest distributors in Mexico. It has a similar prospect in Saudi Arabia.
CFO Alvaro Quintana explained that although the company was focused on growing strategically over a long time, it remains financially healthy and well-positioned to continue its rapid expansion to new markets.
IQST Stock Price Chart –
The stock has collapsed to new lows after a few runs through the year.
As of the time of writing, the stock is trading at 0.2526 as of the close of the market on the 18th of October 2022. It is up by +0.52% from its previous close.
The downside has ignited a lot of buying action that saw the stock rally in the past week. Ticking higher by +9.83% in the last week.
The stock has fallen from the micro-cap category, valued below the $50m threshold. It had previously risen in ranks in the OTC markets from pink sheets to OTCQX.
The year has been devastating for penny stocks as the investor segment is still negative.
IQST is down by -46% in the past year despite its business growing quite well. It is hands down undervalued due to this disconnect in price and growth.
Sentiment on IQST –
A lot of catalysts are present to propel the stock forward. Shareholders are psyched about these developments which include but are not limited to, Nasdaq listing, New EVOSS launch, and attractive financial guidance.
Some pundits believe that the stock is still a far stretch and there would need significant momentum to grow.
The many business divisions confuse some individuals who cannot properly value each separate one.
The company does not have institutional holders which could change with a future listing. Its customers comprise the biggest and most renowned companies like IBM, Verizon, Reliance, Airtel, China Mobile, and more.
This goes on to show the faith these big players have in the stock. Long-term investors see the larger picture of how the company is vertically integrating its four strong segments.
IQST is in fine shape and elicits mixed reactions at the moment, only time will tell.
Pros of Investing in IQST –
- Strong Model – The company is well-diversified in various markets across the globe and has a strong network, which puts it in good stead even in tough times.
- Collapsed price – With the market sell-off, the stock is now very attractive at cents on the dollar. This has massive potential from here.
- Rising Financials – The company is sending strong signals of an upward trajectory in its figures. All of its divisions are expected to generate revenues next year and the company has set its target to hit the $1B mark in valuation.
- Visionary management – The team at IQST is focused on improving its bottom line while advancing its operations throughout the globe. They are future-oriented and are staking emerging markets.
Cons of Investing in IQST –
- Fierce competition – The company has no moat over large players who are in the same industry. Being in multiple sectors it has rivals in every one of these involved.
- Market Meltdown – Global affairs are pretty chaotic at the moment. Investors are fleeing from penny stocks to risk-averse assets. High-risk assets usually return in the same measure or don’t return at all.
Profits for IQST
IQST is at the breakeven point and is anticipated to post a profit in the coming year. Its quarterly results revealed an uptick in figures which has shareholders thrilled.
Revenue for the quarter soared higher by +46.9%, coming in at a solid $23.7M. The net income went up by 64%, recorded at -$351.18K.
The net profit margin increased by +75%, registered at -1.81%. This could very well be its last unprofitable quarter, as its expansion goals are the only thing that barred it from breaking even this year.
Operating expenses went down by a good -5.35, this is incredible and shows stellar4 management by the team. EBITDA rose by 76%, valued at -$269K.
The balance is similarly impressive, with the total liabilities decreasing by -13.77%, whereas total assets increased by a remarkable +62%. The debt-to-equity ratio is at a low of 0.0475.
These fantastic financials have investors salivating and will be scrambling to take a bite from the almost-baked pie.
IQST is a great company that is unlocking value across its four pyramids of operation.
Telecom was a major earner accounting for a majority of the revenue, especially the IoT devices. Fintech also did quite well and shows high growth levels.
EVOSS and Bchain are still in the making and are expected to do well once they mature. The company set a target of an annualized revenue of $90M and is on its way to beating this.
IQST is the company to watch for in the coming year. If it finally attains the long-awaited goal, the stock could rise exponentially with a surge in buying activity.
Growth Likelihood and Potential for IQST
Companies like IQST that can merge multiple enterprises and effectively manage them are truly a rarity.
It has made a name for itself in major markets across the globe and the coming listing will steer it even further.
The NASDAQ is a closely monitored index by institutional investors who will be joining the train once the company gains recognition.
Institutional ownership drives up the prices of stocks more dramatically than any other single factor. IQST has none at the moment and this has hurt its potential.
The market reception for the company is quite plausible and it could take a while before it becomes a household name.
Its moat has to be in the telecom and fintech sectors, with international operations.
The equity markets are depressed and so is the stock, which grants investors a golden opportunity to make an entrance.
In the coming decade, its core businesses will accelerate as they are tech-focused ventures. This stock will amass a lot of moss after sitting silently for a long period.
The telecommunications market is forecasted to grow to $2T by 2027 almost double the current size. Fintech will heavily disrupt conventional banking institutions.
Its most prospective sectors remain Bchain & EVOSS, with both these markets expected to be vital in the future.
EVs are expected to account for nearly 7% of the global vehicle fleet by 2030. The Electric motorcycle market is a new trend in the space, IQST leading.
The budding sectors of the business will flourish shortly, and the group could be a captain of industry.
Overall Verdict on IQST
The company is looking good, and analysts are sure to be looking in its direction soon. The technical indicates a huge upside after it plummeted.
Based on one-month moving averages and oscillators the stock is neutral. Guidance for the coming quarter indicates a significant uptick that could attract more capital.
Penny stocks are considered a dangerous bet as they could go to zero in shaky markets. The stock rose beyond $1 before recently falling. Its intrinsic value is predicted to be north of $50.
Once it turns profitable the company will witness a quantum leap. One forecast posits that in the next five years, the stock price prognosis is $186.
This could be a historic return of more than 10,000%.
The Nasdaq listing will also elevate the stock to a more robust market, coupled with more momentum. The stock is not only a strong buy but a buy now.
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