What's up guys and welcome back to the
channel today I want to talk about iqstel
ticker: (OTC:iqst)
I spoke about iQStel in a penny stock
video that I made last week and I got a
lot of requests to do a full DD video on
this company so here it is. This stock
has got some huge upcoming catalysts
and will become a nasdaq listed company
in the coming months but that's not all
OTC:IQST also have upcoming catalysts before
the end of 2021 so if you find any value
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now let's get into it.
(iqst) iqstel is a us-based technology
company offering leading-edge
telecommunication and technology
services for global markets the company
is traded on the otcqx
ticker: iqst
this company is a fully reporting penny
stock with fantastic corporate
governance and independence board of
directors and an audit committee iqst
offer leading edge services in both
business to business and business to
customer divisions through its seven
subsidiaries across five separate
business divisions these include the
blockchain division through its
subsidiary its b chain the technology
division through award-winning
subsidiary iot labs
its fintech division through
global money one which uses a blend of industry
expertise state-of-the-art technology
and compliance requirements to create
disruptive solutions that deliver
control security and real-time payments
and international money transfer evoss
serves as a one-stop shop for the ev
industry while the telecom division is
the largest of these being made up of
swiss link italics
q global and sms directos
all coming in under the iqs telecom
brand. The company has presence in 15
countries and its products and services
are used in several industries such as
telecommunications ev financial services
chemical and liquid fuel distribution
industries through its subsidiaries
iqstel is interconnected with some of
the world's largest telecommunication
companies
such as vodafone verizon
orange and even IBM. During 2021 iqstel
announced that it became a debt-free
company and is now completely debt free
with no convertible notes warrants
permissory notes or settlement
agreements from its balance sheet and we
will see this in more detail when I look
at the balance sheet later in this video
iqstel business strategy is to develop
their businesses with high margin
anibita contributions in areas such as
ev internet of things technology and
blockchain solutions this approach will
make iqst
one of the leaders as a one-stop shop
for high-tech services so iqstels ceo
leandro iglesias who I will look at in
just a moment issued a letter to
shareholders earlier this week giving an
update in conjunction with the company's
ongoing process to uplift onto nasdaq
first he confirms the strategic
investment deal in excess of 50 million
dollars and approved by the board of
directors remains on track and
anticipate the transaction finalizing
before the end of the year that is
referring to the same deal that they
talked about last week where leandro
iglesias said iqstel is in receipt of an
investment proposal for funding that in
total exceeds 50 million dollars the
board has approved the general terms of
the proposal and outlined conditions for
management to proceed my confidence
level in finalizing the deal is high and
i currently anticipate executing the
agreement before the end of the year but
again no deal is final until its final
so this is very important because as
stated here we are so far along in the
negotiations it is time to preview the
potential of completing the transaction
so this week to be updating again saying
that the deal is on track is great with
so few working days left until the end
of the year I expect that this deal will
be done pretty soon
secondly we remain on track to finalize
the previously announced smart biz
acquisition on schedule in january we
have already announced a preliminary
forecast of 80 million dollars based on
the expectations of our
telecommunications business alone we
have now completed our forecasting of
all business lines
and our board of directors has approved
a 90 million
2022 net income positive revenue
forecast for all our operations combined
so this is fantastic remember that just
last month iqstel released their latest
financials that had shown revenue for
the first nine months of the year to be
46 million dollars so to be forecasting
for nearly double that amount for next
year just shows the level of growth that
the company is achieving not only that
our management team is confident and our
board of directors has endorsed our
confidence that the combined operations
of iqstel's five business lines will
produce 90 million in revenue in 2022
and be profitable so often we see
companies expand rapidly but it comes at
the cost of profitability but iqst have
been heading towards profitability over
the past few months with a loss in the
last quarter of less than two hundred
thousand dollars on revenue of over 16
million dollars and management have
reiterated that they are confident in
the plan to transition onto the nasdaq
exchange within the first six months of
2022
showing they have a history of both
meeting
and exceeding their objectives let's not
forget that this is a company that not
long ago was a pink sheet stock
they said that they would go through the
steps otcqb
otcqx and finally on to nasdaq
so they have executed their plan exactly
as they said they would
and i've just come across this article
from last month that I found to be very
interesting
this was written just after the last
earnings report was released and makes a
few good points
first of all the author has rated the
stock as a speculative boy
as he says here
it might have created more of a wow
factor if the company had achieved
profitability in q3 but they did come
very close and apparently without the
help of new revenue streams
importantly though
the company did maintain a clear
progression towards becoming profitable
and it looks very plausible that the
shift will occur in q4 if it has not
already happened in q4
as I mentioned a moment ago the loss for
q3 was less than two hundred thousand
dollars
this is a serious reduction on previous
quarters losses iqst has not sold any
shares since march 2021 and with the
cash position and potential for
profitability
if they do sell shares it seems more
than likely it would primarily be for
m a activity
so this is a very important point
the company does not need to dilute
shareholders in order to fund operations
if they do decide to offer shares it
will be for the purpose of adding
shareholder value with acquisitions this
is very important
iqs tail decreased its general and
administrative expenses slightly year
over year and continues to see the
benefit of becoming debt free of toxic
debts such as convertible notes and
warrants
interest expenses were less than one
percent of last year's q3
at only six thousand dollars for q3 2021
versus nine hundred and thirteen
thousand dollars for q3 2020
and finally the valuation given some
margin calculations here we can expect
iqstel's telecommunications services to
achieve a margin of 19.06 percent or
near it I could easily see a fair market
price for iqstel above 1 at a telecom
average p e of 22.99
that alone could take the stock to about
twice the current market value if not
more
and these calculations do not even
consider further contributions for any
other iqstel's products or services
looking at the most recent financial
statements they have total assets of 7.5
million and total liabilities of 4.1
million
of this 1.2 million is made up of cash
and cash equivalents I never like to see
a major part of assets being met up with
goodwill and there is 1.5 million of
goodwill recorded here
but this does only amount to about
one-fifth of total assets and they still
have
in excess of six million in assets if we
even disregard the goodwill this gives
the company a very strong balance sheet
and a current ratio of nearly two to one
in favor of assets
which is a huge improvement from the
previous year where liabilities outweigh
assets at a ratio of nearly 1.5 to 1.
looking at the income statement they
have a revenue for the quarter of 16
million and over 46 million for the year
so far giving iqst a total loss for the
year of 3.1 million but as we spoke
about already less than 200 000 of this
loss is attributable to the latest
quarter and this goes a long way to back
up management's views that they will
turn profitable
in the next quarter
it's always vital in these types of
companies to have management
who are both experienced
and connected
in order to help the company
achieve its growth projections
leandro iglesias is the current
co-founder chairman of the board and
president and ceo of iqstel
he founded the company with one business
objective build a successful company
from an idea to nasdaq so the goal
right from the very start was to get
this company onto the nasdaq which iqst
are now very close to achieving
alvaro quintana
is the company cfo and
other co-founder
he has developed a career of more than
20 years of experience in the
telecommunications industry focusing on
regulatory affairs strategic planning
value-added services and international
interconnection agreements
so together with the independent
directors on the board
they oversee the entire group of
companies
while the individual company ceos run
each division of the company's
operations through each subsidiary
each of these are highly experienced
with decades of experience between them
i highly recommend checking out the
company's website
for more detail on these
looking at the chart over the past 12
months we can see that iqst is up over
500 percent
the stock did run up as high as two
dollars at the beginning of 2021 during
the last bull run
but has been trading sideways for the
past six or seven months
looking closer at the chart over the
past two months we can see this huge
spike up in mid-november around the time
that the earnings were released
but after dropping back down iqst stock
is on the rise once more
and I expect this to continue the fact
that management have said
that they expect to get this latest
acquisition deal done before the end of
the year I think this will serve as a
catalyst to drive the price higher
and with the plan to up list in nasdaq
management need to get the share price
higher
than the current price of only 63 cents
so guys that brings us to the end of the
video if you've watched all the way
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