iQSTEL, Inc. (USOTC: IQST) stock is ripping higher after the company confirmed that it’s $60.5 million in 2021 revenue guidance predates its several recently announced partnerships. That announcement is leading investors to speculate IQST revenues could exceed expectations, which is generally a catalyst that moves share prices higher. They may be right.
After a brief pullback last Wednesday, shares are currently higher by roughly 46% and are again breaching the dollar level at $1.04. Year to date, the stock is higher by more than 372% at current prices. And those gains are warranted.
In fact, the stock price is not only reacting to an expected surge in YoY revenues but also to the expectation of higher profit margins from a consolidation of its subsidiary assets under a single brand. Moreover, after recently eliminating all debt earlier this year, IQST expects to have a cash reserve exceeding $2 million by the end of the first quarter. Thus, from an investment perspective, the company is hitting on all cylinders.
Better still, the spike in revenues is only one reason the stock can extend its gains.
A Strong Start To 2021
Understandably, 2021 revenue to date is attracting attention. However, in addition to January and February revenues keeping IQST on pace to reach its $60.5 million target, posting $4.8M and $4.86M, respectively, there’s far more to consider from a valuation perspective. Specifically, agreements with a billion-dollar global telecommunications provider and an expected near-term launch of its Visa Debit Service with Payment Virtual Mobile Solutions, LLC that could add $128 million in revenues over the next five years are also in play.
Better still is the proof that IQST can grow its business. In less than a decade, iQSTEL has turned a startup Telecommunications venture into a projected $60.5 million business. Contributing to that growth are multiple operating subsidiaries that offer services in 13 different countries specializing in Technology, Fintech, Electric Vehicles, and Blockchain. Notably, each business unit is either already generating revenue or is in the process of doing so with industry-leading, diversified, proprietary solutions.
Moreover, its planned uplist to the NASDAQ market would likely enhance its value. Expectations are that its chosen investment banking partner would facilitate introductions to institutional investment groups both pre and post uplisting that would more appropriately value its operations. Already, on a revenues multiple, the stock appears to be considerably undervalued to its peers. The great news is that iQSTEL said it plans to engage an investment banking firm by the end of April.
A Rally Cry In Action
If so, IQST’s share price may be ripe for gains. And, deservedly so. Beyond the two deals above, IQST is also accelerating opportunities through agreements that leverage its expertise in Telecommunications, Electric Vehicle (EV), Liquid Fuel Distribution, Chemical, and Financial Services Industries. IQST already announced initiatives that could increase 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 company intends to commence a field test of its two-way, Internet of Things (IoT) communication device targeting a chemical industry (www.iotsmartTank.com) application that integrates a back and front-end platform to run as a Mobile App. The test is expected to start next month, and upon meeting this Fortune 500 client’s requirements, the anticipated manufacture and shipping of an initial 2500 devices could happen later this year. Investors may get more guidance on pricing after the tests are completed.
By the way, the product being tested is a great one. In fact, its 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 distinction that recognizes its value in the global Internet-of-Things (IoT) market today. Incidentally, IQST competed with contributions from some of the world’s leading tech companies, including Apple (AAPL) and Qualcomm (QCOM). Thus, coming out a winner is a notable achievement.
Creating Its Path In 2021
Now, IQST is taking accolades, subsidiary expansion, and accretive agreements to the next level. Revenues are surging, IQST expects to post record sales in 2021, and the company’s strong cash position should help them accelerate accretive merger and acquisition opportunities. Thus, at roughly $1.04 per share today, the stock may be substantially undervalued.
Here’s what investors should know. As shown in February, IQST stock can run higher quickly. In fact, a more than 41% intraday spike sent prices touching the $2.00 level before profit-taking took a portion back. But, keep in mind, IQST is also being pulled down in sympathy with weakness in the broader small-cap market, and taking a bit of gain on a massive spike is prudent. The excellent news, though, is that IQST is a stronger company in March than in February, and that sets the stage for a more substantial run on company updates.
In the meantime, returning back toward the $2.00 level is in the cards. That assumption is based on recent news and would represent a near 100% gain from current levels. Thus at these prices, and because IQST is delivering on multiple strategic initiatives, investor consideration is not only warranted, it’s earned.
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