LONG $IONI @ $.16 - I-ON Communication Corp Upside
Technical Analysis:
- Potential Double Bottom price support at $.15 from 2/15/19.
- Extremely Oversold on weekly/monthly timeframes.
- Daily/Weekly RSI and MACD turning up while prices are moving lower, conveying negative divergence and potential trend reversal.
- Prices breaking above short-term daily moving averages (10dayEMA and 21daySMA @ $.24).
Fundamental Analysis:
- Price to book ratio <1 conveys undervaluation: I-ON Communications current stock price is $0.16 and Book Value per Share for the quarter that ended in Sep. 2018 was $0.17, therefore I-ON Communications Corp's P/B Ratio is 0.95. This conveys undervaluation by that I-ON's assets ($6 Million) are worth more than the current market cap of the company (5 Million).
- Price to sales ratio <1 conveys undervaluation as most high growth emerging technology companies trade at a 4-5x revenue multiple.
- Domestic market share leader and one of few technology or software companies to emanate out of South Korea and conduct a US listing directly onto the OTCQX.
- Multiple patent-backed enterprise products and solutions at market with blue-chip clientele across South Korea and Japan (100s of clients).
- Room for significant gross and operating margin improvement via sales mix improvements including more licensing and SaaS contribution.
- First mover advantage playing into several attractive high growth industries, including sports software, energy IoT, as well as cloud-based CMS and SaaS solutions conveying revenue stream diversity.
- Potential Double Bottom price support at $.15 from 2/15/19.
- Extremely Oversold on weekly/monthly timeframes.
- Daily/Weekly RSI and MACD turning up while prices are moving lower, conveying negative divergence and potential trend reversal.
- Prices breaking above short-term daily moving averages (10dayEMA and 21daySMA @ $.24).
Fundamental Analysis:
- Price to book ratio <1 conveys undervaluation: I-ON Communications current stock price is $0.16 and Book Value per Share for the quarter that ended in Sep. 2018 was $0.17, therefore I-ON Communications Corp's P/B Ratio is 0.95. This conveys undervaluation by that I-ON's assets ($6 Million) are worth more than the current market cap of the company (5 Million).
- Price to sales ratio <1 conveys undervaluation as most high growth emerging technology companies trade at a 4-5x revenue multiple.
- Domestic market share leader and one of few technology or software companies to emanate out of South Korea and conduct a US listing directly onto the OTCQX.
- Multiple patent-backed enterprise products and solutions at market with blue-chip clientele across South Korea and Japan (100s of clients).
- Room for significant gross and operating margin improvement via sales mix improvements including more licensing and SaaS contribution.
- First mover advantage playing into several attractive high growth industries, including sports software, energy IoT, as well as cloud-based CMS and SaaS solutions conveying revenue stream diversity.
Comment:
Correction: Daily/Weekly RSI and MACD turning up while prices are moving lower, conveying *positive* divergence and potential trend reversal
Trade active:
Out 5.6k shares @ $.22 for +38% gain. Still holding 10k shares at $.16 average
Trade active:
Out 7k shares @ .20 for +30% gain or $600. Still holding 25k shares at $.15 average
Comment:
$IONI I-ON Digital Corp Technical and Fundamental Analysis 04/23/19:
I-ON Digital Corp's share price is currently undergoing a healthy pullback and price consolidation here after an explosive day on April 10th when prices reached a high of $.275 per share. Since then, prices have put in a higher low and potential double bottom at $.13, while also holding 21day moving average support at $.134. RSI continues to trend up with higher lows with prices now following thus confirming trend reversal. MACD has reset and is beginning to curl upward from the lows to allow for strong momentum during next leg higher. If prices break through 50daySMA and 10dayEMA at $.17, then there could be a quick move to test $.275 near-term highs and 5month moving average resistance. A strong move could continue higher to test 100day moving average resistance at $.37, before another pullback or price consolidation move.
I-ON Digital continues to add shareholder value and decrease financial risk with their continued effort to release positive financial news catalysts, reduce convertible debt, and partner with well-known companies like Tenaga Nasional Berhad. I-ON Digital released a strong annual report 10-K that conveyed financial growth and commitment to shareholder value. This was demonstrated through the growth in cash and net income in 2018, combined with an effort to reduce expenses and convertible debt. Their annual report also conveyed transparency and professionalism, which will strengthen investor confidence. Management continues to release strong revenue/partnering catalysts, while attending digital conventions which both will increase company awareness and investor demand.
Fundamental Metrics that convey undervaluation at current 4.7M market cap:
- .90 Price-to-Book
- .75 Price-to-Sales (Industry 2-3x)
- $.21 Book Value of Equity per share
I expect I-ON Digital’s share prices to appreciate in the near-term and have accumulated more at $.13 per share earlier this week for a total Long position of 32.5k shares at a $.147 average.
I-ON Digital Corp's share price is currently undergoing a healthy pullback and price consolidation here after an explosive day on April 10th when prices reached a high of $.275 per share. Since then, prices have put in a higher low and potential double bottom at $.13, while also holding 21day moving average support at $.134. RSI continues to trend up with higher lows with prices now following thus confirming trend reversal. MACD has reset and is beginning to curl upward from the lows to allow for strong momentum during next leg higher. If prices break through 50daySMA and 10dayEMA at $.17, then there could be a quick move to test $.275 near-term highs and 5month moving average resistance. A strong move could continue higher to test 100day moving average resistance at $.37, before another pullback or price consolidation move.
I-ON Digital continues to add shareholder value and decrease financial risk with their continued effort to release positive financial news catalysts, reduce convertible debt, and partner with well-known companies like Tenaga Nasional Berhad. I-ON Digital released a strong annual report 10-K that conveyed financial growth and commitment to shareholder value. This was demonstrated through the growth in cash and net income in 2018, combined with an effort to reduce expenses and convertible debt. Their annual report also conveyed transparency and professionalism, which will strengthen investor confidence. Management continues to release strong revenue/partnering catalysts, while attending digital conventions which both will increase company awareness and investor demand.
Fundamental Metrics that convey undervaluation at current 4.7M market cap:
- .90 Price-to-Book
- .75 Price-to-Sales (Industry 2-3x)
- $.21 Book Value of Equity per share
I expect I-ON Digital’s share prices to appreciate in the near-term and have accumulated more at $.13 per share earlier this week for a total Long position of 32.5k shares at a $.147 average.
Trade active:
Scaled out 17.5k shares today at $.30-$.33 for a huge 135% gain or $2K profit. Average now 15k shares at $.137
