In 2017, we noticed an extreme interest for investments in cryptocurrencies. Bitcoin and other similar currencies are all everyone is talking about. Readers interested in this field will like the next story: Strategic Global Investments, Inc. (OTCMKTS:STBV). This holding company, with investments in different sectors, spiked on July 28, 2017. The company is focusing on the cryptocurrency Initial Coin Offering field. Have a look at the recent share price action.SourceBusiness HistorySTBV is located in San Diego, CA. It was founded in 1985. Obviously, the company has undertaken numerous business activities in its history, thus we will only focus on the last part of its history. The following acquisitions of businesses were reported after the year 2009:
- On June 1, 2010, the company acquired Punta Perfecta S.A. de C.V., a Mexican corporation, which owns Punta Perfecta project (unaudited value of approximately $5 millions).
- On January 1, 2011, Wazuu, Inc., a Florida corporation, was acquired paying 800,000 shares of its common stock.
- On February 21, 2011, the issuer purchased certain assets of 3D Live, Inc. paying 750,000 shares of its common stock.
- On March 18, 2013, assets of Tuvozonline were acquired.
- Bearpot Inc., a Colorado corporation, was acquired in February 2014; it is a marijuana company.
The company was focused previously on "providing customers with various opportunities to use the internet to provide on demand information or advertising to targeted audiences". Since the business objective is now changing to profit from the exciting cryptocurrency industry, we will only talk about the new venture. Additionally, we will explain why the market is reacting by pushing up the share price.Recent Developments - A new business modelOn July 28, 2017, STBV accepted the resignation of Andrew Fellner and the induction of Garland E. Harris as President and CEO. Additionally, James E. Ward will be the new Senior Vice President and Louis T. Minutello will be the new Chief Business Development Officer. In our opinion, the most significant news was the fact that the company will be entering into the cryptocurrency Initial Coin Offering (ICO) field. The new CEO and President explained:
“While we appreciate the past service of Andrew Fellner, we feel that there is incredible opportunity in the cryptocurrency Initial Coin Offering (ICO) field. The time is now to pioneer fully compliant ICO’s backed by real assets and real businesses and we intend to do just that.” Source
Furthermore, he continued:
“Strategic is a Delaware corporation and therefore intends to be one of the first to utilize the new Delaware law that allows shares to be traded and tracked using blockchain technology.” Source
The market reactionBefore the news came out, the stock seemed dormant. It was only after the press release was put out that the market drew its attention to the company. The announcement was made on July 28, 2017. On the same day, the share price went from less than $0.01 to hit the $0.03 share price level. Additionally, more than 6 million shares changed hands.SourceWhat is going to happen now? We will need to assess more the next press releases, wherein we expect to learn more about this strategic change in the direction of the business. It is true that the sector elected is growing at a high pace and will make the company grow as well, but communicating the plan is key. We encourage readers to be ready to assess the new announcements. If you don't have the time to do it, you can subscribe to our newsletter, wherein we analyze the information in a rapid manner.Sound Financial SituationWe could read the last financial statements reported to the market in the following document:
The amount of assets ($2,309,620) is much larger than the total amount of current liabilities ($266,935). In addition, the company has neither long term debt nor convertible debt. Apart from the preferred stock, which was mainly owned by the CEO, the company did not show any other convertible securities, such as warrants. We appreciate it, as the risk of dilution for the commons stockholders is limited.ConclusionSTBV delivered big news regarding the future of the company. The company is adapting to the times and making a play on the hottest sector for investors today - cryptocurrencies. The market appreciated the news, as it may mean a lot of revenue growth. We need to be alert as the company updates its progress and specific plans. If the market likes what the company delivers, the share price could really run. Additionally, the last financial statements reported showed that the balance sheet is very solid, which is a huge positive in OTC land. To sum up, be alert as there's a lot to like in STBV.We will be updating our subscribers as soon as we know more. For the latest updates on STBV, sign up below!Image courtesy of Tom Crypto via FlickrDisclosure: We have no position in STBV and have not been compensated for this article.
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