Tuesday 14 November 2017

The Top 10 Events I Am Waiting For In 2017

2017 has about a month and a half left in it, but there is still so much to look forward to by the end of the year for several stocks that I am watching closely. Here is a top ten list of what I am looking forward to:

1. Fintech Select (FTEC) launch of the cryptocurrency point-of-sales

FTEC has been making very good progress over the last couple of weeks in getting ready for the soft launch of its Selectcoin point-of-sales network, enabling people to buy and sell bitcoin and other cryptocurrency at thousands of locations across Canada. I expect the soft launch of a few sample locations to be announced at any moment. After a couple of weeks of a successful trial run, I expect the full launch to go live, creating a national news event and a high-margin ATM business almost overnight.

I have been selling into rallies and buying back on pullbacks, but FTEC has grown to become my largest holding. Dollars and cents wise, I think other names on this list have bigger deals signed or coming, but nothing impacts local Canadian investors and regular people like this business will. I expect the hype to be massive as it will be a noteworthy news event on a very trendy topic right now - bitcoin and blockchain - which will resonate with people, be exciting, and be very easy to explain to the masses who might not just be interested in transacting and investing in bitcoin, but also with the company that is making accessible to million of Canadians.

Only time will tell how the company deals with this opportunity over the following months and years. But I believe very strongly that early investors will make out like bandits (some already have with the recent move up) and it's up to them if they want to hold some FTEC for the long term. At this point in time I am riding the hype and will evaluate a long-term hold at the appropriate time when I can see a path to financials that justify it.

2. Peak Positioning Technologies (PKK) debenture financing closed

PKK expects the debenture financing to help fund the minimum $20 million in capital required to set up ASFC to close by December 15. ASFC should be fully operational fairly soon after that. I really look forward to this debenture closing because I think that is the final step for PKK to move off this frustrating 5 cent stock price, despite the company making huge strides in setting up profitable lending and fintech businesses in China this year. Although the debenture closes in a month from now, the deadline to request participation is coming up. Once the company makes it clear that the debenture is filled and some people were unsuccessful in getting a piece of the action, I think the stock will quickly move up as demand for the shares suddenly increase because the 5 cent warrants associated with the debenture are no longer available to the market.

3. Global Cannabis Applications (APP) release of Citizen Green

I have been watching how hot blockchain and cannabis stocks have been. APP has been my diamond in the rough that I have been slowly accumulating at cheap prices and it finally got some love today. It closed at 16.5 cents, the highest I have seen since I have owned it.

APP has proposed the release of the Citizen Green platform in Q4. From what I gather, portions of the platform will be released at different times and countries. The basic premise of Citizen Green is to organize and facilitate anecdotal data based on the experiences and feedback of individuals using various strains medicinal marijuana for different ailments. APP's apps will collect that data and put it into blockchain for a data bank of user reviews. It looks like artificial intelligence will be used to try to turn these anecdotes and reviews into actionable medical data for regulators. The company will also leverage the blockchain to present its own token loyalty program.

These initiatives sound like superb hype fodder for the blockchain and cannabis chasers out there and I am guessing based on the tone of the company's recent magazine interview that the rollout will be continuous, leading to a steady news flow. Like FTEC, only time will tell how financially lucrative this will all be, but early investors should make out like bandits on hype here too. The share float is the smallest of any company on this list, and therefore most susceptible to big market moves.

4. First Global Data (FGD) financials

FGD's Q3 financials, along with the rest of the financial releases mentioned on this list are due to come out by November 29. I'm most interested to see FGD's release. With profits in four of the last six quarters, it's the most advanced of the microcap companies I am invested in.

Q2 was a bit of a disappointment with single-digit growth over Q1 and a net loss. That being said, it was still a record quarter in terms of revenue for the company. I would like to see growth over Q2 well into the double digits. Profits will be nice, but if the company had to aggressively hire to fulfill many of the deals it has signed in 2017, I will be okay with that.

5. PKK financials

With ASDS up and running, I am excited to see gross margins and revenues in the very early stages of this profitable fintech business.

6. Lightning Ventures (LVI) financials

LVI claimed it was cash flow positive going forward in September. The real interesting set of financials will be Q4, but September does cover one month of Q3 so I think there will be something to look forward to here.

7. FTEC financials

FTEC has pulled profits recently, but that has come in the form of gains on debt re-settlement. I would like to see continued re-settlement of debt that will further improve the balance sheet. I am not that excited to see the income statement just yet since none of the new proposed offerings have launched as of the end of Q3. But it would be nice to see some traction on the existing business.

8. FGD 40 U.S State licenses by the end of the year

FGD estimated to have 40 state money services licenses by the end of the year. The goal is to have the final 10 states in Q1. Hopefully California is one of the licenses that will get done in 2017 so FGD and LianLian Pay can fully launch and promote the WeChat remittance service across the U.S. The vast majority of Chinese citizens or people of Chinese decent reside in California or New York so the deal is getting minimal reach right now with the existing state licenses. 

9. Mission Ready Services (MRS) purchase order

The news of a purchase order around MRS' $400 million multi-year supply agreement could be the biggest news maker of them all. It sits only at #9 on my list because I have been in and out trading the stock. Shamefully, I had to give in and chase the blockchain fad rather than buy and hold a company which I feel strongly will do well and has real numbers to back it up. But out of all the companies I have invested in, I know this one the least (I haven't spoken with management) and feel the least attached to it. So I'm playing the roulette wheel that my blockchain-related stocks will run before this one announces a huge order so I can reload a huge position at a cheap price. But I am watching closely either way.

10. Peeks (PEEK) proposed merger with Personas

This one is ranked lower as well despite a larger news event because I don't own any PEEK shares at the moment. The stock is halted and there is a good chance this halt could be related to the proposed combination with Personas. Once that news is out, I can re-evaluate the situation and if the price, wherever it opens, represents a good buying opportunity.

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