Patreon Voice call 22nd March
We spoke about market recovering slowly: OTC however, will bounce back slowly. This is a known phenomenon as confidence level in OTC stocks is generally low and many long term investors will leverage the dip to invest in blue chip companies rather. T212 and case of $IQST
• $IQST has reached out to T212 and hasn’t received a response yet
• The criterion used by T212 to block the trading of certain OTC companies including $IQST is not clear
• Recent indicators include company purchasing back 21 M shares thereby increasing investor’s value, something rare for OTC companies to do
• A significant catalyst related to their telecommunication sector coming up in April : 4 of their telecommunication companies will come under a single banner, thereby reducing operational costs
• $IQST posted a revenue of 5M for Jan and 60 M is expected for this year – all of this have been reported and verified by OTC markets : no significant red flags here
• Now, flipper’s reaction to T212 blocking the trade should have taken effect : i.e., panic selling should have occurred – – share price will go down – it will find its resistance at some point and settle down
• T212 could potentially sell your stocks at a lower SP and you may make a loss
Whatever the reason might be, we believe that we have a strong case in $IQST and continue to hold. We would like to encourage you to make your own decision based on the pros cons we have discussed. This learning could potentially be applied to other stock picks: $ABML, $GAXY etc. Remember, market crashes happen – check 2008 and 2020 market crashes, we believe what we are facing now is a slightly deep correction. So, please don’t panic and be careful when you deal with pessimists. If we have done our research right, there should be no reason to panic. Quick return and return in multiples in a short time frame and an opportunity to grow together are primary reasons to go behind emerging companies. Take the case of $ABML for instance: its share price went up to $4 in spite of the company not having a proper balance sheet so to speak of and yet people are willing to pay the price and same way even if share price comes down to 2$ we will give the time needed for it to recover and realise its true future potential. I set a limit of investing up to 4000 GBP in OTC and increase if my conviction goes up: OTC stocks are volatile and investment in penny stocks carries a risk. It’s difficult to value OTC companies and institutional investors prefer to invest in regulated blue chip companies.
• T212 and $IQST: Would T212 could buy the shares we sell and hold for a while? All of our efforts to get clarity on this have been unfruitful. We think the overall float with $IQST is 80 M and we anticipate T212 to handle about 1M. Perhaps T212 wants to suspend all OTC trading on the platform
• We discussed balancing our portfolio between OTC stocks and main market players
• Is it a good idea to wind down with T212? – It’s subjective and we can discuss possible scenarios: 1) T212 may sell your shares and you make a loss – if you are OK to take a hit, sell and move to another platform 2) trading might resume and we might be OK then.
• We are in touch with other brokers to understand how best we can get support – we will keep you updated
• $ABML – LI is not planning to close his position with T212 at the moment
• $LKCO and delisting: few black listed companies have sued, cases are happening as we speak and one of them had a success recently. The sitting judge who would handle $LKCO is the same one with whom there was this breakthrough success. In addition $LKCO, has opened its books, has offered full transparency and is doing whatever it could to prevent delisting from happening. If you are worried about delisting, you could move your shares to IBKR and trade in Hong Kong market ( get permissions to trade, and you shouldn’t be a US citizen)
• We discussed adding podcast options to our website and Discord..