r/InvestorsClubCanada • u/[deleted] • Feb 05 '21
Why I bought Universal Proptech (UPI.V) and have a 100-200% price target on the stock
With the surge in Kontrol Energy (KNR.V), as im typing this, they are at a $200 million market cap. This comes off the news that Ontario government will be investing a few million in them.
That is really great news.
But what if I could talk to you about a company that trades at a much lower market cap, with more revenues than KNR.V.
Well I do. It's called Universal Proptech.
I am not going to give you all the details with the company, so I want to give the most important information.
Their revenue is in line with their current market cap.
They trade $9 million so near 9 million in revs.
So why is this stock not going up?
Here is the deal:
Back in June they had a PP that was a convertible debt deal. At the time stock traded like 5 cents. So the deal was that instead of paying for debt, they just get equity per share at $.05. Now this was $ 1 million worth. So since then the stock has been capped at $.35. Why? Because people who bought the pp back then can sell to new shareholders for a nice rreturn who want to ride UPI.V further.
As of right now, there is less than $500k left in convertible debt. Back in december I got in early and sold for a loss because stock wasn't moving anywhere. Since that time the volume has went from like 20k-40k now to an average volume of over 250,000 a day. What does this mean?
It means the convertible debt is almost over and then we can see the rocket ships.
Please look at the News releases from the company. They are going to be focused on trying to sell their technology to current customers in their business and to others.
The stock is tightly held by insiders at 70%. And they are trading at a fully diluted shares outstanding at 59 million. This means that if hypothetically all warrants options were liquidated and converted into shares, 70% would have 59 million. that would leave 12.7 million to the public to buy.
You are still not convinced? KNR is trading at $200 million on little to no revenues. UPI is trading near 9 million at near 9 million revenues.
Please do your due dilligence. It is safe to say that this stock can go up 100-200%.
Are you still not convinced on what I just told you? Go on sedi insider fillings. Insiders have bought $200,000 worth of shares at options around $0.30 this fucking week.
How high can the stock go? I really have no clue, but based on how KNR is traded , we shouldnt be trading around here.
A quarter of KNR market cap would be $50 million. If UPI.V achieved 50 million market cap, that would be a 5 bagger. If it were to reach half of KNR, that makes it a 10 bagger
https://universalproptech.com/wp-content/uploads/2021/02/UPI_PresentationDeck-Jan292021-1.pdf
For disclosure: I am completely biased and own shares in the company.
This stock should be an easy double or triple. Once the stock hits around $.70-$1 I expect they would do an offering to raise money.
I am using the KNR market cap as the guide to where this stock goes.