iQSTEL, Inc. (USOTC: IQST) made another big announcement last week saying that its Visa Debit Card services, known as Visa Money One (VIMO), is on track to be released in June of 2021. That is good news to millions of people in markets around the world whose populations lack the financial infrastructure of other countries.
The VIMO features take the typical debit card to a much higher level. Consumers will be able to create a US bank account and use a Mobile Wallet that contains a Visa Debit Card through VIMO's One-Stop-Shopping Fintech services, which will feature a comprehensive suite of banking services. The deal can be a significant growth driver in the back half of the year.
Better still, IQST has enhanced this offering by announcing a planned partnership with an existing coin exchange that will provide consumers the option to buy and sell currencies through iQSTEL's Global Money One VIMO branded services. The CEO of IQST, Leandro Iglesias, noted the growing prominence of cryptocurrencies and their uses within the economy, and believes that their addition to its platform will create another source of substantial revenues. Iglesias believes that with its new VIMO branded banking ecosystem, IQST could potentially generate $128 million in revenues during the next five years – if this sounds like a lofty goal, it's not. Here's why:
iQSTEL Continues its Rally
IQST has consistently beat expectations. And its Q1 report shows that the company is positioned for breakout growth this year. Having achieved its “debt free” milestone in Q1 of this year, IQST’s operations in both its core and subsidiary divisions have continued to gain momentum as the company continues to expand its global footprint.
The most recent report from IQST shows truly impressive growth. At the end of Q1, IQST had $3.103 million in cash and cash equivalent balances, up 302% from the end of Q1. Its total assets also increased by 37%, and the company also reversed a stockholders' equity deficit of $2.395 million into a surplus of $3.754 million. Its cash and cash equivalents have reached a combined $3.032 million, and with its REG A offering still underway, the company is well-positioned to capitalize on multiple growth opportunities.
Following a record breaking Q4 last year, the company's revenues for this quarter grew by 38% to reach a record high of $14.197 million. This outstanding performance helped push its net loss down by 51%, to $1.878 million. It also helped to significantly decrease the company’s diluted loss per share by 92%, dropping from ($0.13) to ($0.01). The company believes that it will be able to capitalize upon this momentum for the second half of the year and grab hold of the global telecommunication industry.
Continually Surpassing Even the Most Confident of Expectations
With Q1 2021 exceeding the company’s own expectations, IQST appears to be on track for consistent growth throughout the remainder of 2021. The data supports the idea that its 2021 revenue goal of $60.5 is also comfortably in reach, proving many early skeptics wrong. With a strengthened balance sheet, IQST can now effectively invest in its operational divisions and raise working capital to support its growth. This will allow the company to fully focus on its mission to develop and release innovative high-quality services to markets around the world.
Its latest ventures planned for Q2 of 2021 include the development of its Mobile Number Portability App (MNPA), the announcement of its IoTSmartTank for a fortune-500 client, and the launch of its VisaDebitCard for EEUU markets. All of these products and services are projected to generate additional income streams that come with high margins for the company.
Through its new YouTube channel, IQST will provide updates to investors concerning its various projects and developments. These updates will help investors better understand the company's operations and financial performance.
2021 has been Transformational for IQST
The first-quarter report reinforces the upward momentum generated by the fourth-quarter report. Prior to its record-breaking $14.93 Q1, IQST had consistently posted quarters with revenues of at least $4.8 million. These figures were remarkable at the time, and the company's sales benchmark has risen by triple digit percentages since then. If the current trend continues, investors could expect a sizable jump in share price within the upcoming weeks and quarters.
IQST’s share price has increased by triple-digit percentages since the start of 2021, which is impressive considering the recent poor performance of other small-cap stocks over the past month. While Q4 helped to kickstart the growth spurt for IQST, the even better news is that the results from the first part of 2021 have continued to demonstrate this success. The results have been so impressive that even the company’s own estimate of 2021 revenues reaching $60.5 million seems conservative.
The company has outlined its broad plan to capitalize on proven and growing international telecomm market prospects, and its seven diversified operational subsidiaries are in their strongest position yet to generate significant returns for IQST throughout the second half of 2021.
To put it simply, IQST has had an extraordinary year and is beginning to establish a deserving recognition as a leading global telecom services provider.
Benefiting from a Debt-Free Balance Sheet
Notably, the economic challenges of the pandemic did nothing to deter IQST, who has consistently posted sizable gains quarter after quarter. The growth demonstrates that despite the company’s small size, IQST has the managerial expertise and vision to persevere through any difficulties in order to come out on top.
The even better news is that its great services, development plans, and new business alliances have long-term lasting power as the driving forces behind its accelerated expansion. Moreover, the company’s ability to adapt and provide trending business applications to underserved markets will facilitate their expansion into international markets. All of this is happening as the company continues to optimize its core services and operations.
The comprehensive expansion strategies of IQST will also support the company in providing its broad range of services to worldwide markets, likely generating significant returns to investors in the process.
A Strategy Emphasizing Accretive Partnerships
If the first half of 2021 is any indication, this could truly become a breakout year for IQST. The team behind IQST was able to successfully capitalize upon the momentum from 2020 and continue the company’s rapid expansion. Investors may compare IQST’s story to Atento S.A. (NYSE: ATTO), another worldwide service provider, in order to better understand the potential in this investment opportunity. America Movil, S.A.B. (NYSE: AMX) is another example of a company that developed from small-cap size to a large-cap worldwide telecomm industry participant, with a market valuation reaching $47.6 billion.
With these comparisons in mind and with projects in play, it seems quite likely that IQST will surge higher from its $69.81 million market cap. In fact, its probable that IQST will gain additional market traction, expand into new areas, and increase income from their existing and varied business divisions. Keep in mind that IQST's outstanding Q1 results last week demonstrate that the company has the resources and capacity to efficiently develop its business, and as a result, its market cap will climb to compensate.
Indeed, the remainder of 2021 will likely build upon the company’s momentum, and at present prices, its stock presents a compelling investment opportunity. Furthermore, IQST’s openness to accretive business partnerships, along with the value created through those deals, will support the continued and rapid expansion of its current operations in 15 countries.
Here’s the real kicker – with revenues likely to reach the company’s guidance of $60.5 million this year, a peer-given revenue-based multiple should have already taken shares substantially higher. However, as the rewards of growth have not yet come to its share price, an opportunity exists while the stock is still undervalued. This undervaluation won’t last long, however – IQST has historically outperformed expectations..
Between record high revenues, no debt, its 92% decrease in operating losses, and an established presence in 15 countries, iQSTEL, Inc. appears to present a compelling opportunity at these levels. History says to act fast.
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