iQSTEL, Inc. (USOTC: IQST) is on pace to reach its high end of revenue guidance by posting $4.8 million in revenues for January 2021. The increase is a more than 159% jump compared to the same period last year. Moreover, iQSTEL is heading into February with momentum on its side after announcing two potentially significant revenue-generating deals. One is with a major telecommunications provider and the other sets into motion the planned sales launch of its new Mobile Number Portability Application (MNPA) Blockchain Platform beginning in April of this year.
The revenue update on Thursday puts iQSTEL well on track to meet its revenue forecast of $60.5 million during the remainder of the year. Moreover, the recent accretive announcements coupled with the expectation that its subsidiaries will continue to expand their services could make that forecast rather conservative. Better still, IQST management expects to maximize those revenues from strengthening profit margins and a consolidation of its Telecom subsidiaries to operate under a single brand name to improve marketing momentum and operating efficiencies. Those changes will help make the most of every dollar earned from its Telecom division, which is expected to contribute $55.1 million of the forecasted revenues.
Making up the difference to reach the $60.5 million in anticipated revenues is expected to come from the company’s other growing, high margin business units including its Technology Division (IoT and Batteries for EV), Fintech Division (Visa Debit Card), and Blockchain Division (MNPA).
Expecting growth from each division, investors have been bidding the stock higher and as of March 3rd share prices were higher by more than 404% year-to-date. And, with multiple shots on goal from its diversified operating subsidiaries, the trend higher is likely to continue despite recent weakness and volatility in the OTC markets.
Subsidiaries Will Contribute To Growth
Although the bulk of revenues are being generated from IQST’s Telecom division, investors should also pay attention to the company’s other operating divisions. There, in addition to its US-based operations, IQST is capitalizing on substantial opportunities from having an international presence. IQST currently holds a competitive position in 13 additional countries offering leading-edge Telecommunication, Technology, and Fintech Services for Global Markets.
Further, IQST is providing leading services to the Telecommunications, Electric Vehicle (EV), Liquid Fuel Distribution, Chemical, and Financial Services Industries. That diversification, for all intents and purposes, should be considered an asset since each can create value.
Specifically, through its 4 Business Divisions: Telecom, Technology, Fintech and Blockchain, IQST is leveraging multiple subsidiaries to capitalize on worldwide B2B and B2C customer relations. Its operating subsidiaries, Etelix, SwissLink, QGlobal SMS, SMSDirectos, IoT Labs, Global Money One, and itsBchain, are maximizing opportunities with an extensive portfolio of products and services for its clients that include SMS, VoIP, 4G & 5G international infrastructure connectivity, and Cloud-PBX. Also, IQST is advancing initiatives to generate shareholder value through OmniChannel Marketing, IoT Smart Electric Vehicle Platform, iQ Batteries for Electric Vehicles, and its IoT Smart Gas and IoT Smart Tank Platform. The company’s most recent agreements are expected to generate new revenue streams from development interests in Visa Debit Card, Money Remittance, Mobile Number Portability Application MNPA (Blockchain Platform) and Settlement & Payments Marketplace (Blockchain Platform).
Thus, for a stock that is trading at roughly $1.00 per share with a market-cap of only $81 million, IQST appears to be significantly undervalued, especially using a revenues multiple applied to its industry peers. Moreover, its surging revenues and accretive deals that couple IQST with billion-dollar clients, could help to minimize risk to the downside, especially with the company reiterating its top-end guidance on Thursday.
Therefore, making an assumption that the weakness in the OTC markets is creating significant opportunities is valid. And with the markets not sparing even the strongest of the bunch from double-digit percentage volatility, a position in IQST at these levels looks extremely attractive. And if shares trend lower, investors could enjoy an even better price point to potentially earn exponential returns over the next several quarters.
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