iQSTEL, Inc. (USOTC: IQST) is taking its NASDAQ uplisting ambitions to the next level. Last week, the company announced its meeting with candidate investment banking firm partners to help close the deal on what could be a catalyst producing uplist. If an agreement is announced soon, it adds to a transformative list of accomplishments during the past six months for IQST. February revenues add to that list.
Undoubtedly, iQSTEL has earned its right to be included in a NASDAQ exchange, especially after posting February revenues of $4.86 million. That report followed its January revenues of $4.8 million, a 159% increase compared to the same period last year. Better still, the combined YTD revenue now stands at $9.65 million, a more than 272% increase over the same periods last year. Moreover, management reiterated its confidence to meet or exceed its 2021 revenue guidance of $60.5 million. Notably, in addition to targeting its forecast’s upper bands, IQST also announced eliminating all debt from its balance sheet. Since the start of the year, shares in the company are higher by roughly 452% as of 3/16/21. More gains are likely. Here’s why:
Since starting operations roughly a decade ago, iQSTEL has done more than just build its Telecommunications foundation into a $55 million dollar business. And while that asset is worthy of its own valuation, albeit higher than today’s, IQST simultaneously developed multiple subsidiaries that operate in 13 different countries that target massive market opportunities. Those units, specializing in Technology, Fintech, Electric Vehicles, and Blockchain offerings are already in the process of generating revenue with industry-leading, proprietary solutions. Thus, investors may be shortsighted to only bid a current market cap of $91 million.
Moreover, with the near-term goal to uplist in sight, coupled with an investment banking partner that can lift iQSTEL’s recognition within the institutional investment community both pre and post uplisting, a higher valuation is likely. Better still, more than just facilitate an uplist, the chosen investment banking partner is also expected to strengthen IQST’s plans to enhance its capital formation and assist in strategic mergers and acquisitions. Perhaps best of all, iQSTEL plans to engage an investment banking firm by the end of April.
If so, shares could return to 52-week highs rather quickly.
Building Its Infrastructure
For sure, iQSTEL has been deliberate in executing its growth initiatives. Most recently, IQST announced plans to launch its Visa Debit Card service through an agreement with Payment Virtual Mobile Solutions, LLC. That deal, utilizing a Visa Prepaid Debit Card Service (PDCS), is expected to generate revenues over the next five years between $45 million and $128 million. That surge in revenue is expected to be coupled with an impressive anticipated EBITDA margin of 30% to 40%, which would facilitate a large portion of those revenues to fall toward the bottom line.
Also notable is that the project will be led by IQST expertise, who, through a new subsidiary, Global Money One, Inc., will own 75% of the venture, with PayVMS owning the other 25%. The collaborative project targets what they believe is a niche opportunity designed to enable international customers to make purchases in stores and online, withdraw cash at ATMs, and receive cashback when using the card to purchase.
Other important functions within the service allow users to recharge prepaid mobile phone service (domestic and international), send money domestically or internationally, and facilitate the deposit of funds into bank accounts, rewards, and digital gift cards. Better still, PDCS customers are expected to be able to pay bills through a supporting payment gateway. IQST makes money on transactions. Thus, the comprehensive features create additional revenue streams.
The expected revenues from that project add to an already bullish outlook for 2021.
Video Link: https://www.youtube.com/embed/0Ft-8IMZEVw
IQST Guidance At Highest Band of $60.5 Million Expectation
The deal with PVMS adds to a momentous start of 2021. As noted, shares are higher by more than 452% since the beginning of the new year, with the increase gaining momentum after IQST announced February revenues of $4.86 million. That report showed a more than 288% increase compared to the same period last year and positions the company to reach the high end of its $60.5 million 2021 revenue guidance. Keep in mind, guidance was provided before two other potentially transformative deals were announced that could drive sales sharply higher during the year.
One of those deals is with a global telecommunications provider that could open the door to substantial international opportunities. That company not only has an international presence but also is a multi-billion dollar revenue-generating provider. Although just limited details were provided about the deal, investors should expect more insight into that deal’s impact in the coming weeks.
A second deal will capitalize on a tremendous opportunity through the expected launch of its new Mobile Number Portability Application (MNPA) Blockchain Platform planned for April of this year. Both deals are likely to create significant value, and better yet, can be near-term catalysts for growth. And once further details are provided, investors will be able to remodel revenue estimates which could lead toward substantially higher share prices based on a revenues multiple calculations.
Still, while those deals are forward-looking, plenty is going on now to legitimize the YTD surge in the share price. Moreover, with the company planning to consolidate its Telecom subsidiaries’ to operate under a single brand name, the company can streamline operating efficiencies and create a more seamless marketing program. That’s good news, as the consolidation will maximize more than $55.1 million of the forecasted Telecom Division revenues. And while the Telecom Division is currently providing the bulk of revenues, its subsidiaries are also gaining strong international traction.
In fact, making up the difference in the $60.5 million target is an expected $5.4 million in projected revenues coming from the company’s other high margin business units, including its Technology Division (IoT and Batteries for EV), Fintech Division (Visa Debit Card), and Blockchain Division (MNPA). Each of those divisions is expanding on its global opportunities by offering innovative sector-specific product and service solutions.
Those units could be the wild card to spurring a considerable and unexpected increase in 2021 revenues. Thus, investors need to be aware of the comprehensive IQST portfolio.
Subsidiary Growth Impacts 2021 Revenues
While most of the attention is placed on IQST’s Telecom Division, its other operating divisions should not be underestimated in their impact. Already, IQST is leveraging each unit to extend its reach well beyond the US border and is capitalizing on having an international presence in 13 additional countries that can target numerous sector opportunities. And more than just having a general presence, IQST is exploiting opportunities and building its client base by offering leading-edge Telecommunication, Technology, and Fintech Services for Global Markets. That reach should generate higher returns this year.
In fact, despite its small-cap price, IQST is providing services equal to or better than even some global conglomerates can claim. That statement is confirmed in recently announced deals that help establish IQST’s reputation of having expertise in the Telecommunications, Electric Vehicle (EV), Liquid Fuel Distribution, Chemical, and Financial Services Industries. That diversity delivers almost limitless potential.
Better still is that through its four Business Divisions- Telecom, Technology, Fintech, and Blockchain-, IQST is successfully diversifying its business strategy and at the same time is increasing its revenue mix by targeting a worldwide B2B and B2C customer base. Its subsidiaries, Etelix, SwissLink, QGlobal SMS, SMSDirectos, IoT Labs, Global Money One, and itsBchain, are already taking advantage of potentially lucrative market opportunities through an extensive portfolio of products and services that include SMS, VoIP, 4G & 5G international infrastructure connectivity, and Cloud-PBX.
As if that was not enough, 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. Notably, the SmartGas® solution has been selected as the winner of the “Smart Appliance Product of the Year” award in the 5th annual IoT Breakthrough Awards program conducted by IoT Breakthrough, a leading market intelligence organization that recognizes the top companies, technologies, and products in the global Internet-of-Things (IoT) market today. As noted, IQST competed with contributions from some of the world’s leading tech companies, including Apple (AAPL) and Qualcomm (QCOM). And IQST came out a winner.
Thus, for investors looking for established companies that are on the verge of hyper-growth status, IQST should be high on the list. Moreover, with revenues already surging, a record year in its cross-hairs, and acquisition and merger strategies in play, its current $1.23 share price may substantially undervalue the company and its assets. But, being mispriced does bring opportunity. And IQST has a way of responding quickly and positively to investor interest.
As shown in February, and despite being relatively thinly traded, interest can cause IQST to run higher quickly. In fact, investors pushed the stock to an intraday high of $2.00, or roughly 41% higher, on February 22nd before profit-taking eroded some of that surge. The great news is that the setup today looks much better.
In March, IQST added more ammunition to its product arsenal, and when combined with robust revenue growth and better operating margins, IQST is better positioned than ever to breach its 52-week high. Thus, paying attention to IQST at these levels could generate returns of roughly 72% by only reaching its already established high. All signs point to a probability for that to happen.
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