THIS A REPOST THAT SHOULD BE STICKIED Posted By:
Post# of 2913
Posted By: xyz1002
Hold till at least $0.25-$0.50. Here is why?
It will get there much sooner than anyone can imagine.
1) Ignore the OS. The float is very small. No one knows the float. The last reported float was like under 100M. From my 18 yrs of investment, if I had to take a wild guess, I will bet it is below 300M or maybe below 200M range. A good measure is when you see a stock moves 100% in one-day with whatever the volume is, the float is likely around that number. In other words, a general rule of thumb is a $1 stock will become $2 when the entire float churns. That is not valid for trips (0.0001-0.0002 types), however.
2) For SPCL most people like myself are holding for long-term, so the real available float is getting smaller every day. I am thinking there are quite a few people who are holding shares like myself.
3) Then you have traders who are buying and selling, taking their investment out and holding what they call the "free shares" for the long haul. They are carrying no risk at this point as they got the investment out. My guess is as the pps keeps moving up this crowd will get more and more making the available float even smaller.
4) So the pps will move up much faster and faster and once it reaches $0.05 range
5) The company is doing a RS with clear intent for up-listing. I have no doubt in my mind. Read below why. The OS after the RS will be a tiny 18M and the float maybe 2-3 M shares. After the RS and up-listing the stock will sky rocket and I for one plan to hold it for very long time. I am hoping that it will become a long-term investment. That is my goal.
6) Ignore the revenue and don't even try to do xPEG multiple. Private companies which are Silicon Valley VC-backed (I work in that space for living) gets 100x-500x revenue valuation. Revenue right now is irrelevant.
7) What is relevant is their “PROJECTED” growth rate. That will be the key piece of information one has to look out for when it comes out after or during the Up-listing.
They are the market leader in this space now which is another key point for valuation. That's why Uber is > $65 Billion valuation now.
9) My guess is with 18M OS after the RS and Up-listing if they can get say $900M valuation, that will put the pre-split pps of $0.50, 50X from here
10) I am thinking that is their goal. If they get $1B-$2B valuation, then at that point they can do a secondary and raise $200-$500M easy say at $100 a piece at that point.
11) So I am thinking we may be at $0.50 range by the time the Up listing happens and that translate to $50 a piece after RS and a market cap of $900M.
12) btw- don't look at the app store for ranking. This is primarily a B2B, SaS type model Not a Whats App type for consumers. So the App Store ranking is irrelevant.
These are all my assumption as I work with Startups, valuation and fund raising on a daily basis. I am assuming that these are a bunch of serious professionals with high level of ethics NOT some pink scammers. All things points to the fact that they are serious and trying to do it right.
Will I be wrong? Maybe! I have been wrong in the past most definitely in the OTC land. So I play what I can gamble.
I don't see any sign of that happening now. Not until the RS and up listing. They can and will do a secondary pretty much guaranteed but by that time the pps will be $100 is my guess.
if you listen to the noise makers or try to day trade then you will miss out on the big gains. The noise makers have been making noise from 0.003 area and becoming louder everyday as they regret not buying. There will be many times it will gap up and those gaps won’t fill. Happens all the time when a stock is in strong upward move.
But OTC is and will be always a gamble.