Penny Stocks on NASDAQ/NYSE/TSX

[C-Note]

An exploratory graphite mining company that I've bought a few shares in is South Star Battery Metals Corp (OTC: STSBF). Their stock is currently priced at US$0.11. They are developing a high-quality graphite mine in Brazil with a goal of starting graphite production and sales around Q1 2023. An independent financial company recently issued what looks to me to be a excellent profile and analysis of South Star:

https://canaccordgenuity.bluematrix.com/sellside/EmailDocViewer?encrypt=e9582fb2-56d4-45ab-9858-deb47a657a18&mime=pdf&co=Canaccordgenuity&[email protected]&source=mail

The report does a good job of explaining the risks of investing in graphite producers and manufacturers. There is competition from synthetic graphite, as well as from cheap, but lower quality, natural graphite from China. There are a number of exploratory, as well as established, mining companies operating or developing higher-quality graphite mines in North and South America.

It seems to me that the biggest factor in determining the future market price for high quality graphite mined in the Western hemisphere is if electric car companies go through with their announced plans to try to establish complete battery materials supply chains in that hemisphere. If they do, then there will be demand for South Star and other companies' graphite. However, I would expect it would be most beneficial for South Star if an electric car company and/or lithium-ion battery manufacturer built factories in Brazil, to lower the cost of shipping the graphite. It might make sense to do so, as there are also lithium mines in Chile and Argentina.

There is risk that battery technology will change or evolve so that it no longer requires graphite. If that happens, graphite is still needed for other manufactured goods, but the quality needed for other uses is lower, so the price of the graphite would be less, lowering the earnings for the graphite producers. So, if demand for battery-quality graphite increases similarly to that of lithium, it's possible that South Star's stock price could eventually reach into the $10-20 range. However, if the company ends up selling most of its graphite for other types of production (tires, etc) then it may never rise much above $1-5.

 

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I hope others bought ETEK!!

 

[C-Note]

When I was selecting the various, mainly penny individual stocks, to invest in, one of my criteria was that they have a low number of outstanding shares. Besides cutting down on the dilution of share value, I figured that it was sign that the firm's management was running a tight, well-managed ship since they were able to move the company along without having to continuously sell more shares for financing.

Unfortunately, one of the side-effects of a company that is able to develop without issuing many shares is that it apparently makes them a more attractive target for takeover and/or acquisition. As I detailed previously, Millennial Lithium is currently being taken over by a Chinese company. Now, today, a mining stock I mentioned before that I've invested in, called Fiore Gold, is also the target of acquisition.

Calibre Mining (OTC: CXBMF) wants to acquire Fiore in exchange for .994 of Calibre stock for each Fiore stock, plus $.10 (Canadian). Calibre's stock is currently valued at $1.80 vs 1.00 for Fiore so it sounds like a good deal. However, I checked out Calibre and they don't seem to be as well-managed as Fiore. They have 340,000,000 outstanding shares and don't yet have a mine in operation, unlike Fiore. They have several properties in Nicaragua that they're still developing. So, they're apparently trying to jumpstart their business via Fiore.

On the bright side, once Calibre's mine in Nicaragua is up and going, that, plus Fiore's two mines in Nevada, should give them enough gold production (245,000 oz per annum) to get their stock price up into the $2.50-5.00 range of valuation, at least. I just think that if left to their own devices, Fiore would do better in the future than they would being swallowed up by Calibre.

 

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PHIL just received a $1.5B preferred loan. I cannot remember another OTC company receiving such funding. This doesn't happen if the heavily vetted catalysts and deals lined up don't show multi billions in revenue down the road.

But the DD already shows PHIL will be a multi billion dollar company. This just solidifies the early stages of what will happen.

Per the 8K.

 

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With PHIL the Lux Fund has over a billion in commitments for Vietnamese projects and that was prior to the 1.5B loan. The ADE will follow the Antwerp and Dubai Diamond Exchanges. The same person who led the creation of the Dubai Exchange is working with PHIL for the Asian Exchange. PHIL already has 1 billion per year in commitments for diamonds and has Kimberly certification. PHIL will not only own and operate the ADE but will also get a cut of every transaction. As a comparison, the DDE generated 25B in transactions in 2018.

https://www.dmcc.ae/news/dmcc-unveils-new-dubai-diamond-exchange-largest-diamond-trading-floor-world

Aside from that the 5 Grain acquisition has flown under the radar.

New York, Sept. 17, 2021 (GLOBE NEWSWIRE) -- PHI Group, Inc. (www.phiglobal.com, PHIL), a diversified holding company currently engaged in PHILUX Global Funds (a group of Luxembourg bank funds), the Asia Diamond Exchange project (“ADE”) in Vietnam, mergers and acquisitions and investing in special situations, is pleased to announce that it has signed a Memorandum of Understanding (MOU) to acquire seventy percent (70%) ownership in Five Grain Treasure Spirits Co., Ltd., (“Five-Grain”) a company with over one hundred years of tradition in Jilin Province, China. This is a unique, special situation transaction that is expected to create substantial value for the Company, its shareholders and all stakeholders.

According to the MOU, PHI Group will acquire seventy percent (70%) ownership in Five-Grain and provide the additional required capital for Five-Grain to fully execute its business plan. The budget for this transaction will be one hundred million U.S. dollars (USD 100,000,000), to be paid in three tranches. The Company will complete the due diligence of Five-Grain before signing a Definitive Agreement for the consummation of this transaction, which is scheduled to close by the end of 2021. PHI Group will also set up a subsidiary under the name of “Empire Spirits, Inc.” as the special purpose vehicle for this undertaking.

Five-Grain specializes in the production and sales of spirits and the development of proprietary spirit production processes. It also possesses a patented technology to grow red sorghum for baiju manufacturing. The patented grain produces superior yield and quality. Five-Grain is a reputable bulk alcohol supplier to some of the largest spirits companies in the world.

According to the Five-Grain development plan, once the acquisition is completed, the company will follow a three-prong growth strategy to reach 200,000,000 liters of bulk spirits per year to supply to other beverage companies and develop its own brand using proprietary manufacturing methods and preferred distribution channels. By reaching these goals, Five-Grain expects to annually generate over US$ 600 million in revenues on the success of the Company’s growth plan.

Kweichow Moutai, the largest alcohol company in the world has recently crossed the $500 billion dollar valuation mark. With a single Baijiu product, they enjoy a 50X expected revenues. Five-Grain will supply bulk spirits to them as well as other major spirits companies.

With this type of a multiple, PHI Group is confident this will bring tremendous value to all its shareholders.

Then the ADE carbon crypto token was announced.

New York, Oct. 26, 2021 (GLOBE NEWSWIRE) -- PHI Group, Inc. (www.phiglobal.com, PHIL), a company engaged in advancing PHILUX Global Funds, a group of Luxembourg bank funds organized as “Reserved Alternative Investment Fund” (“RAIF”), and developing the Asia Diamond Exchange (“ADE”) in Vietnam, is pleased to announce the launch of the ADE token in South Korea in connection with the Asia Diamond Exchange.

The token is designed to optimize transparency and fair pricing to the diamond industry to provide enhanced benefits to all stakeholders. By validating transactions on a blockchain, there are no chances of counterfeiting or substandard pieces. Consumers will be able to design and purchase custom diamond jewelry and loose gemstones at significantly better prices by using the ADE tokens.

The ADE tokens will be deflationary by setting aside profits to purchase and burn tokens as well as systematically continuing the buy-back of PHIL stock on an ongoing basis in the future. International investors may purchase and trade the tokens once they are listed on top exchanges such as Coinbase and Binance.

There has been an ongoing buyback all year. Speculation is 19-20B shares will be retired. And the buyback will continue in the future with token profits.

This is the CC regarding the ADE token.



We're awaiting the audit results for Vinafilms. We know it has expanded to 3 locations and each location likely generates 25M+ per year. Henry said earlier this year the revenues from Vinafilms alone are enough to uplist to Nasdaq.

The Lux Fund will be used both to fund the construction of the ADE as well as dozens of other Vietnamese revitalization projects in partnership with the government.

PHIL has a number of other subsidiaries as well. I have never come across something this large on the OTC. This company has every intention of trading on the Nasdaq.

 

[rainy]

And more news dropped. The amount of catalysts and projects here is insane. We're just getting started.

New York, Oct. 29, 2021 (GLOBE NEWSWIRE) -- PHI Group, Inc. (PHIL) (www.phiglobal.com, PHIL), a company currently engaged in PHILUX Global Funds, a group of Luxembourg bank funds organized as “Reserved Alternative Investment Fund” (“RAIF”), and the establishment of Asia Diamond Exchange (“ADE”) in Vietnam, is pleased to announce that TPP Holdings Group (aka Hung Hung Thinh Group), a Vietnamese company specializing in real estate investment, development and construction with a long successful corporate history (www.tppholdingsgroup.com), has signed a Memorandum of Understanding (MOU) with the Company to participate in the Luxembourg real estate fund and cooperate in the development and construction of the Multi-Commodities Center and the Asia Diamond Exchange in Vietnam.

According to the MOU, TPP and PHIL will expeditiously sign definitive agreements to consummate these transactions. Both parties expect to execute the definitive agreements as early as next week to expedite the process.

The Commodities Center is one of the other projects the Lux Fund will fund which I referenced above.

 

[C-Note]

I thought, initially, that this company had market-leader potential in the area of distance learning, especially right now with the ongoing scamdemic. Unfortunately, however, after looking closer into their product offering I'm not seeing anything particularly innovative or distinctive. Their revenue did increase in 2020 over 2019. So, perhaps they can keep that going a few more years and then get bought out by a bigger competitor.

Boxlight- BOXL $2.58, 1 Apr 21

Outstanding Shares: 56.7m (2020 annual report)

Employees: 189

Market cap: 131.46m

Cash on hand: 13.46m (cash and equivalents)

Products:

Interactive LED flat panels, projectors, whiteboards, and peripherals, plus conferencing, classroom, science education, and professional development software and content. The company provides installation, training, consulting, and maintenance for its products. About 75% of the company’s customers are educational institutions, and 40% of its sales are in the US. The company sells its products through “resellers” rather than direct. Its suite of educational products is trademarked as “Connected Classroom.” Its front-of-class displays are branded as “Mimio” and “Clevertouch.” Its backend software and systems are cloud-based.

The company has aggressively acquired other companies and their product patents in order to more quickly expand its product line. These companies include EOS in 2018, Modern Robotics in 2019, and MyStemKits and Sahara Presentation Systems in 2020. The company uses Samsung for its flat panels and projectors.

They have scored sales with some fairly large customers, including school districts in San Diego, Dallas, New York City, Baltimore, and Atlanta.

Notes:

The company has 26m in debt to third parties.

I’m not sure that Boxlight would qualify as a “market leader” because the interactive education industry is highly competitive, with similar products and services also marketed by Smart Technologies, Promethean, ViewSonic, Dell, Samsung, Panasonic, and ClearTouch. Boxlight’s marketing strategy appears to be to keep their costs low so that they can offer a competitively-priced, yet high quality product. But, what company isn’t trying to do this? I don’t see anything in their product suite that isn’t something you could buy somewhere or from someone else. They don’t mention in their literature any new technological innovation that they have in development. I searched around, but couldn’t find any independent reviews of their products.

It seems that their best bet is to do well-enough to become a target of acquisition by a larger competitor. Nevertheless, since they don’t appear to have a significant competitive advantage, I’m not sure how their stock price can move much above the $5-8 range based on their current potential. The stock is currently priced fairly cheaply, however, so it may be worth buying a few shares and waiting for next year’s annual report to see how they did with their 2021 sales.

For what its worth, this company's third quarter results give them their first net profit in their history, at $700k and $.01 earnings per share. They have shown a steady increase in sales and revenue over the past year or so. Their stock has not greatly increased in price over that time.

Boxlight Reports Third Quarter 2021 Financial Results

Revenue increased by 544% to $61.0 million Customer orders increased by 756% to $51.0 million Income before tax increased by $6.3 million to $2.1 million Net income per common share improved by $0.11 to $0.01 Adjusted EBITDA improved by $8.0 million to $7.2 million Expect Q4 2021 Revenue of $40...

investors.boxlight.com

 

[BasedBaker]

And more news dropped. The amount of catalysts and projects here is insane. We're just getting started.



The Commodities Center is one of the other projects the Lux Fund will fund which I referenced above.

What is the exact ticker PHIL or something else and where are you buying it?

 

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What is the exact ticker PHIL or something else and where are you buying it?

PHIL.

PHI Group.

I buy with Schwab.

 

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PHIL apparently just secured a 2B loan on top of the recent 1.5B loan. Woah.

If that's not strong evidence of what's in the pipeline, I don't know what otherwise would be. 3.5B in financing for PHIL's projects.

 

[FrancisK]

PHIL apparently just secured a 2B loan on top of the recent 1.5B loan. Woah.

If that's not strong evidence of what's in the pipeline, I don't know what otherwise would be. 3.5B in financing for PHIL's projects.

Did this news come in after hours?

 

[rainy]

Did this news come in after hours?

Nope. Around 3pm.

 

[C-Note]

Capstone Mining, which is technically a penny stock because it trades below $5 and is sold over-the-counter (OTC: CSFFF) outside of Canada is a copper mining company I mentioned before. Yesterday, they announced they were merging with a private copper mining company called Mantos. Mantos has two producing copper mines in Chile.

The merger will give the new company, called Capstone Copper, four functioning copper mines. They are also in the process of opening a new one, which should open in about 2-3 more years, giving them five total mines.

Their stock has jumped about 30 cents so far with the news, to about $4.70 in spite of the market downturns on two of the last three days. This company has been doing a good job at keeping their debt low and putting out some legit copper production. Their earnings for Q3 2021 were $.09 a share, which I think is good for a junior mining company. With this acquisition, I don't think they'll be considered a junior mining company any more, but more of a medium-sized company. I imagine that eventually they'll ask to be listed on the NYSE or AMEX, although their market cap may not meet the minimum yet.

If you're interested in investing in copper, they may be a good bet, although of course you should do your own DD. Shares in this company are also owned by the main copper ETF- Global X Copper Miners COPX.

 

[C-Note]

If you're thinking of investing in junior or exploratory graphite producers, you might consider Canada-based Northern Graphite (OTC: NGPHF) which announced today that they're acquiring two graphite mines that are ready-for-production. One is a mine in Quebec that already produces about 15,000 tonnes a year and the other is a mine in Namibia that closed down in 2018 because the operator, a private company, couldn't get their processing plant to adequately function. Northern thinks that they can produce 100-150,000 tonnes of battery-grade graphite from that mine per year and hope to start initial production in about nine months.

According to their press release, they will use income from these two mines to help them develop their flagship project in Ontario. They claim that their testing shows that the graphite in that deposit is among the highest grade in the world.

Northern Graphite | The Future of North American Graphite Production

The Future of North American Graphite Production

www.northerngraphite.com

Northern was selling for $.30 a share in September when I bought into it. It's currently at .64. Sales of their stock are currently suspended until the Toronto Stock Exchange approves the acquisition.

 

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Here's 160 pages of DD on PHIL. Doesn't include some of the latest updates such as the acquisition of 5 grains, one of the 100 biggest companies in China, two loan deals totaling 3.5B, the ADE carbon crypto token, and from last week the MDA to purchase 51% of Kota Energy Group for 64M.

PHIL

PHIL PHI GROUP, INC 1 Creator: SD_Hunter https://stocktwits.com/SD_Hunter Friend once told me before diving into the OTC -- “Never lose hope. If you fail try again and again until you succeed. One of the biggest mistakes in life is to give up. Don’t listen to the Bashers, Listen to the DD.” There...

docs.google.com

Buyback and dividend coming soon.

Maybe I'm wrong but I have never seen a company like this on the OTC. Multiple future revenue vehicles each generating billions under the PHIL umbrella. The buyback gives me significant confidence we won't need a R/S to hit Nasdaq. And it appears 20B+ shares will be retired with the SEC and 1/3 of ADE token profits going to continued share buybacks.

With everything going on in the world I'm personally more than fine with this calculated risk. Holding a few million shares and if it goes where I think it will I can exist well outside any COVID restrictions. If not I can accept the hit.

I've been digging into PHIL for about a year now and truly believe we're getting in on the ground floor of a future international multi-billion dollar holding and M&A company.

 

[inthefade]

Here's 160 pages of DD on PHIL. Doesn't include some of the latest updates such as the acquisition of 5 grains, one of the 100 biggest companies in China, two loan deals totaling 3.5B, the ADE carbon crypto token, and from last week the MDA to purchase 51% of Kota Energy Group for 64M.

PHIL

PHIL PHI GROUP, INC 1 Creator: SD_Hunter https://stocktwits.com/SD_Hunter Friend once told me before diving into the OTC -- “Never lose hope. If you fail try again and again until you succeed. One of the biggest mistakes in life is to give up. Don’t listen to the Bashers, Listen to the DD.” There...

docs.google.com

Buyback and dividend coming soon.

Maybe I'm wrong but I have never seen a company like this on the OTC. Multiple future revenue vehicles each generating billions under the PHIL umbrella. The buyback gives me significant confidence we won't need a R/S to hit Nasdaq. And it appears 20B+ shares will be retired with the SEC and 1/3 of ADE token profits going to continued share buybacks.

With everything going on in the world I'm personally more than fine with this calculated risk. Holding a few million shares and if it goes where I think it will I can exist well outside any COVID restrictions. If not I can accept the hit.

I've been digging into PHIL for about a year now and truly believe we're getting in on the ground floor of a future international multi-billion dollar holding and M&A company.

I think I'll try a little of this for fun. Never had a penny stock or OTC before. When is the div coming?

 

[rainy]

I think I'll try a little of this for fun. Never had a penny stock or OTC before. When is the div coming?

APR dividend might come as soon as EOY. Might get pushed back though.

The dividend is just icing on the cake for me. Not a main reason for holding. 1 share APR for every 2,000 shares of PHIL. But APR might initially list on the Nasdaq.

 

[C-Note]

Another one-trick pony pharmaceutical/biotech penny stock. As shaky as this Canadian company's future currently is, I think their stock is a little overpriced. Of course, I could be completely wrong and they'll make a mint helping millions of people lick their chronic coughing and itching. We'll see...

Bellus Health- BLU $3.84, 31 Mar 21

Outstanding Shares: 78.34m

Employees: 32

Market cap: 298.47m

Cash on hand: 48.89m (cash and equivalents)

Products: Only one- BLU-5937, a P2X3 antagonist for hypersensitivity disorders

1. Chronic cough- Phase 2 trial completed in July 2020 and found that the drug was ineffective except for patients with a high cough count (25 coughs+ per hour). Phase 2B trial is being conducted for high-frequency cough patients with interim results expected in Q2 or Q3 2021 and final results in Q4 2021.

2. Chronic Pruritus (itch)- Phase 2 with results expected Q4 2021.

Notes:

According to Bellus, there are few effective treatments for chronic cough, itch and other hypersensitivity disorders, so there is high market demand (9m+ patients in the US) should their product be successful. Competitor products are concurrently being developed by Merck (MK-7264), Bayer (BAY 1817080), and Shionogi (S-600918) but Bellus claims their drug has better results so far or fewer side effects, notably in taste sensation.

Because of their announcement in July 2020 of mixed results in their initial Phase II trial, their stock value plummeted from $12 to close to $2. Although it has since recovered to about $4, in the past week investors have initiated a class-action lawsuit against the company, claiming Bellus made fraudulent claims about the future efficacy of BLU-5937 in 2019, which artificially inflated its stock price. Interestingly, the announcement of the class-action lawsuit has so far not affected the stock price, which has remained more-or-less steady.

The price of this stock seems to be as high as it is because if Bellus gets this drug to market, they will have a competitive advantage and there is high demand for a drug for this ailment. The Q4 2021 results for their two trials may make or break this company.

This morning Bellus announced final results from their Phase 2B trial for patients with high cough counts. The drug reduced coughing by 20-30%. Apparently, that's good enough and their stock price doubled today, peaking at 9.50 before settling at 8.50. If their itch phase 2 trial comes back with positive results, then perhaps the price will go up more. I'm still holding until the drug goes to market (if it passes its phase 3 trials) to try to get maximum value out of it. I guess it will be another year or so before they have results from the phase 3 trials.

I've invested small amounts in 25 different junior/penny pharmaceutical/bio-tech companies this year and so far Bellus is the third one to "pop." The other two were aTyr and Catalyst.

 

[C-Note]

This morning Bellus announced final results from their Phase 2B trial for patients with high cough counts. The drug reduced coughing by 20-30%. Apparently, that's good enough and their stock price doubled today, peaking at 9.50 before settling at 8.50. If their itch phase 2 trial comes back with positive results, then perhaps the price will go up more. I'm still holding until the drug goes to market (if it passes its phase 3 trials) to try to get maximum value out of it. I guess it will be another year or so before they have results from the phase 3 trials.

I've invested small amounts in 25 different junior/penny pharmaceutical/bio-tech companies this year and so far Bellus is the third one to "pop." The other two were aTyr and Catalyst.

Correction to the above, apparently Bellus has abandoned its trials for the drug for treating chronic itching.

 

[rainy]

Decent summary on PHIL. Doesn't touch on everything though.

PHI Group, Inc. (OTCMKTS: PHIL) Curled Tight as M&A Player Launches ADE Token in Connection with Asia Diamond Exchange, Signs Massive Loan Agreements & Eyes National Exchange

PHI Group, Inc. (OTCMKTS: PHIL) is curled up tight and in accumulation phase as it hovers below the penny mark averaging $500,000 in daily trading volume and supported by its massive international following. PHIL is among the most searched for stocks in small caps too and it’s so popular there...

microcapdaily.com