Hey pgrace, some great trades on the stock! Well done.
I did ring them up and got the chance to speak to Vlado again and he's assured me that none of the people in the cap raise has sold any. It seems the recent selling is from panicking retailers and a possible negative sentiment about Evolution doing the cap raise. But money is money, all they're doing is buying $5m worth of the stock, and they aren't flipping or selling for a small profit or loss so materially speaking this is nothing but a positive to me. Money is money regardless of who it comes from. Their money will help the company progress their existing and new deals, as well as further develop the technology and make the listing onto NASDAQ proceed smoother, maybe even a sneaky acquisition on the cards. Also worth keeping in mind that Evolution simply facilitated the deal, the actual money comes from professional sophisticated investors who are usually clients of multiple brokers, ones with much better reputations. So the money in the end, is always the same money coming in regardless of who facilitated it.
My investment model for MYQ is pretty straight forward, they are right on the cusp of breaking even with their revenues, just a short few months away. Once their revenues start to pick up and snowball (Nexus minimum revenue guarantee is a solid deal that brings the company out of substantial risk as a speculative stock into an actual small cap growth stock), then the upside is absolutely many multiples higher worth of potential compared to the downside risk present. Trading or investing to me is always balancing your risk to reward, and with MYQs current standing, their business model, their potential revenue growth, as well as the global pandemic driving even more business towards them, I am sitting on an absolute gold mine of a stock with some of the best risk to reward ratios even at present pricing.
Most speculative companies are one or two trick ponies where they have a flagship project that sink or swim based off one or two single deals as they are competing in very competitive markets. But in MYQ's case here, they are in a largely unexplored market industry, only recently entered into with Amazon Halo which is only a boost for the industry as a whole. MYQ has dozens and scores of deals either already executed or on the way, significantly reducing the risk in case some of the deals don't eventuate. Almost each of these deals individually are set to generate enough revenue to bring the company into a cash flow positive state within a year of going live. MYQ has a tight structure, which has most of the shares held by T20 and not free trading on the market. And for all this to be achieved, it means that the CEO, Vlado, is a man who knows exactly what he is doing and how to execute and close deals. Most capital raises and convertible note conversions have been done at a premium, premium CRs are a unicorn already, and yet in the case here we have seen one after another which means both that Vlado is a fantastic negotiator, and that MYQ does actually carry that value to deserve a premium.
Downrampers have been rampant on Hotcopper before July, especially 3 individuals that most old posters here will remember. But their downramps were always based off misleading and incorrect facts and data. Just ignoring the facts and straight up spreading misinformation. This led to them being horrendously wrong and have now all slunk away in shame never to be seen again. MYQ has managed to prove all the downramper's points to be false and wrong, and have performed above expectation. I have no doubt this will continue to be the case.
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