On June 16, 2023, SQI Diagnostics (SQI), a leader in the science of lung testing, announced that it planned to voluntarily file for bankruptcy.  Upon the legal action being filed the shares of the publicly traded SQI Diagnostics that are held by more than 1,000 shareholders would have become worthless.   Michael Markowski, an analyst who had recommended the shares of SQI interceded to prevent the bankruptcy from being filed.  SQI Diagnostics’ stock symbols:

Canada: SQD.V

US: SQIDF

In his March 30, 2023 ShinyPennyStocks.com “Timing is FINALLY Right for SQI Diagnostics’ Shares” research report Michael Markowski recommended SQIDF shares at a limit price of $0.05.  His rationale for the recommendation was because:

• SQI had submitted several lung testing products to the US. FDA and Canada’s Health Canada regulatory bodies. Regulatory approval for some of the products was granted in 2022.  SQI anticipates that a majority of all of the testing products including its TorDX donor lung testing product will be approved by regulators by the end of 2024.
• SQI’s share price was 90% below its all-time high.

SQI’s proprietary products, upon approval, could potentially value SQI for a billion, equivalent to a share price of $2.00 or above.  Because SQI had a diversified portfolio of change-the-world respiratory products and had other intangibles Mr. Markowski stated “SQI has the best risk reward ratio of any stock that I have ever recommended throughout my 46-year career” in his March 2023 research report.    

After SQI made its bankruptcy announcement, Michael questioned as to why the company’s Board of Directors (BOD) would make such a rash decision.  He contacted the secured creditor, which had sent the foreclosure notice to SQI.  The notice had prompted SQI’s decision to voluntarily seek bankruptcy protection. 

Michael Markowski was surprised to learn that the foreclosing creditor was willing to convert the debt owed by SQI into an equity stake in the company.  Since the creditor was not the catalyst for SQI’s decision to file for bankruptcy he analyzed the public company’s Financial Statements and disclosures.  Mr. Markowski discovered that the majority of SQI’s Board of Directors (BOD) were also secured creditors.  This meant, that in the event of a bankruptcy, the members of the BOD who were secured creditors would continue to have a stake in SQI’s products and intellectual property. 

Armed with this information, Mr. Markowski began his battle to STOP SQI from filing for bankruptcy.  Michael produced a 6/19/23 memo in support of why the bankruptcy should not be filed.  He informed the members of SQI’s BOD that they were self-serving and not acting in the best interests of the company’s minority shareholders.  He cited the conflicts that necessitated a restructuring of SQI’s BOD.  Michael demanded that the conflicted secured lender/directors resign and that his three BOD nominees be elected to SQI’s BOD:

• Dr.David Weill, former Director of the Center for Advanced Lung Disease and Lung and Heart-Lung Transplant Program at Stanford University Medical Center
• David Markowski, former CFO of a publicly traded company and registered investment advisor
• Deborah Markowski, registered investment advisor

In a 6/22/23 follow-up email to the directors Michael Markowski said:

“The bottom line is that SQI Diagnostics will be the cherry on top of the cake when my career ends one way or another.  

1. Biggest stock ever
2.  I will become the most well-known shareholder advocate ever.  The “Ralph Nader” for investors.  

If SQI files for bankruptcy, I will have no choice but to lead the effort for the behalf of all of the shareholders to vigorously pursuit all of the existing board members.  This will enable me to protect and to increase the value of my brand.  Articles have been written about me by every major financial publication throughout my career and Fortune Magazine named me as one of their top 50 investors.    

I guarantee you that lawsuits will be filed against each of the Board members.  Since SQI Diagnostics Inc. has done nothing wrong there will be no need for a class action lawsuit.   

To fund the lawsuits articles will be published about the despicable things that the SQI Board members did and how they did nothing to protect SQI’s common shareholders. My award-winning reporter contact at the Wall Street Journal will love this story.  SQI will become the poster child for why Directors should not be self-serving”.   

Video below is a clip from Michael Markowski’s weekly “Markowski on the Market” Saturday 6/24/23 session.  It’s about the ultimatum that he gave to the SQI Directors. 

On 6/23/23 SQI’s Board of directors relented.  The bankruptcy for SQI was not filed and SQI agreed to restructure its Board of directors.  Mr. Markowski’s director nominees would be elected and would constitute the majority for the SQI Board of Directors.  At July 7, 2023, the details to incorporate the changes were in the process of being worked out.  

Video below is a clip from Michael Markowski’s weekly “Markowski on the Market” Saturday 7/01/23 session.  It’s about the potential price target for SQIDF shares after the SQI-will-not-seek to-file-for-bankruptcy announcement is made.

Video below is a 7/8/23 update on SQI Diagnostics during “Markowski on the Market” weekly Saturday 11:00AM session. 

For updates on SQI Diagnostics subscribe to ShinyPennyStocks.com.  The site offers a free 90- day subscription. 

Investview’s share price has been obliterated due to the company having a significant bitcoin mining operation.  The shares price is reflecting that the Investview is a bankruptcy candidate.   The chart below depicts the share prices of the five largest publicly traded bitcoin miners and bitcoin.   All of the minershave declined by at least 80% in 2022.  One of them, Core Scientific (Symbol:CORZ), recently declared bankruptcy.

For two reasons Investview is not a bankruptcy candidate:

1. Investview is not a pure bitcoin mining play. 76% of Investview’s revenue for its nine months ended 9/30/2022 were derived from subscription revenue.  Investview has more than 20,000 distributors who sell its educational trading products worldwide.  

2. Based on my analysis of Investview’s financials it is not a bankruptcy candidate. Since Investview has a tangible book value of $24.2 million the probability is very high that the it could be acquired at a premium to its current market cap (share price X shares outstanding) of $29.97 million.  INVU’s independent distributors who are in 120 countries is extremely valuable to any and every online broker or crypto broker.  The photo below was taken at an Investview distributor event in Egypt in 2021.  The photo depicts the wide range of demographics which include businessmen and young men & women.   

The tables below depict the comparisons of Investview’s key Financial Statement metrics for the quarter ended December 31, 2018 versus the nine months ended September 30, 2022.  2018 was chosen as the comparative year since December of 2018 was the last time that Investview shares could have been fetched at a penny or under.  

The key Income Statement metrics in the table below depict that Investview’s revenue increased by at least 106% for its nine months.  Even more importantly, its income from operations went from a negative $3.9 million to a positive $6.4 million.  Even though INVU’s revenue for the quarter had declined versus the 2021 quarter its annualized subscription revenue was $47.2 million at September 30, 2022. 

The table below depicts INVU’s key Balance Sheet metrics.   Current assets which grew by over 4,000% since 2018 and exceeded its Tangible Book Value at 9/30/2022.  Investview’s Current Ratio went from below 1.00 in 2018 to 2.2 in its recent quarter.  Investview’s shares outstanding only increased by a much slower pace of 19.32% from 2018 to 2022.  Most importantly, since INVU generated $7.3 million of operating cash flow for its nine months ended and had $26.6 million of cash September 30, 2022, there is no reason for the company to have to raise cash to dilute its shareholders.

Due to its shares having declined substantially since 2021, Investview and its shares are a tax loss sale candidate. This means that the share price will likely go to a new low for the year this week.  Many who purchased the shares at much higher prices and have held them for more than a year will sell them to create a tax loss that they can use to offset capital gains taken during the year.  The chart below depicts the Investview’s low since 2018 occurred in December of 2018. The lows were because INVU shares were also a tax loss candidate in December 2018.   

Investview shares could easily multiply by several times by the end of the first quarter of 2023 when compared to their current price.  The price of a bitcoin which is also a tax loss sale candidate could easily increase by 50% to 100% from their 2022 low.  The chart below depicts Bitcoin’s price from December 2020 to December 2022.  The green shaded area in the chart depicts the sideways pattern for the price of a Bitcoin from November 6, 2022 through December 25, 2022.  The chart indicates that the crypto currency has already, or is in the process of bottoming.

Upon Bitcoin bottoming and its price increasing the revenue and profits of all of the crypto miners will increase.  This will result in the share prices of the miners bouncing.  A good rule of thumb is the price of the shares of those companies that have declined by at least 80%, and which have not gone bankrupt, will bounce to within 50% of their trailing 12-month highs.  Since the highest price of INVU shares for 2022 was 0.1065 the share price could easily bounce back to $0.5 in 2023 for a gain of approximately 400 percent from the current penny per share price.    

Investview’s share price will be under severe pressure until the close of 12/30/22.  To obtain the lowest possible prices throughout this week, I recommend that you subscribe to a 90-day complementary trial to ShinyPennyStocks.com.  This will enable you to receive text message alerts, which will be sent out to all subscribers throughout the week.  The messages will contain the price buy limits and the percentage of available funds to be utilized for each of the price limits. 

ShinyPennyStocks.com’s goal is to assist its subscribers to accumulate their shares at an average price that could potentially be at or below the closing price of INVU shares on 12/30/2022.  The best way to have a cost basis which is lower than the close of 12/30/22 is by averaging in.  ShinyPennyStocks.com will also be making additional average- in recommendations on the other companies it is closely following via text messages throughout the week. If you are already a ShinyPennyStocks.com subscriber you need to re-subscribe to the Complementary 90 day trial.  Otherwise, you will not get the text messages. 

Finally, I have forecasted a 77.36% decline for the S&P 500 and for investors to adopt a defensive investing posture.  One of the asset classes that performs well during substantial blue-chip declines is penny stocks.   For more about my forecast and my defensive Return of Capital versus a Return on Capital strategy I am recommending the article entitled “Markowski’s Latest, “S&P 500 to Decline by 77.36 Percent from January 2022 Peak” ⎯ Bottom at 1090.90” by Paul Lengemann.   

Kings Entertainment Group Inc. (JKPT) is an international online service provider for lottery, casino, and sportsbook gambling and parent company of global online gaming innovators LottoKings and WinTrillions. It started trading 01/24/2022 on the Canadian (CN) stock exchange.

Strategically positioning as the industry is expected to more than doubles to USD $127.3 billion by 2027 from 2021’s USD $53 billion, according to a new report by Grand View Research, Inc and FORBES.

Highlights from JKPT operations in February 2022, include new registrations, growth in depositing customers and continued casino growth. It’s 2021 NET REVENUE: USD $5.9 MILLION.

The recent campaigns were successful in boosting registrations by 136 percent over January, despite the three day shorter month, with 15,449 customer sign-ups achieved in February. One of Kings Entertainment’s flagship brands, LottoKings, achieved a 30 percent increase in revenue in February over the previous month.

It’s goal of increasing casino revenue in February was successful with live casino  increasing active players by 12 percent. Revenue for casino operations jumped by 36 percent in February to $118,491, as compared to the first 28 days of January.

“The success of these marketing campaigns will be instrumental to our revenue strategy this fiscal year,” said Steve Budin, CEO of Kings Entertainment. “While the lack of significant jackpots in February dampened overall demand for lottery, the increase in both active casino players and casino revenue is a very positive signal that our strategy of transitioning our strong lottery base to the casino vertical is working.”

Online Gambling Market Size Worth $127.3 Billion By 2027 

Online Gambling Market Growth & Trends – https://www.grandviewresearch.com

U.S. Gambling Revenue Hit Record $53 Billion In 2021 – Forbes

Investview’s SEC filing on (3/31/22) was extremely significant.  Its shares (symbol:INVU) should be aggressively purchased at or under ShinyPennyStocks.com’s $0.10 buy limit price.   The shares could soon pierce through the $0.10 barrier based on what was revealed in the filing and/or upon my new report that is currently in progress and which will be published next week.  My report will provide the rationale for why the share price could reach $4.03 by 2027.   See 3/22/22 “Report in Support of $4.03 INVU share price, to soon be available”.

The SEC filing disclosed that Investview had delayed the filing of its Financial report for its fiscal year ended 12/31/21, which was due on 3/31/22.  The delay was to provide its newly appointed CEO, extra time to thoroughly review its financials.  In addition, Investview disclosed that it had:

• “Substantially increased the scale and scope of its operations since the previous fiscal year ended 3/31/22. It is anticipated that there will be a significant increase in revenue and earnings from the previous fiscal year (the twelve months ended March 31, 2021) to the current transition period (the nine months ended December 31, 2021)”

Significance:  A company’s revenue and earnings for a stub period (9 months) being substantially higher than revenue and earnings for a full period (12 months) is extremely rare. For INVU, this is especially a significant development.  It indicates that kerosene has been poured on INVU’s already raging growth fire.

• Changed its fiscal year from March 31 to December 31.

Significance:  From my experience a rationale for a company to change its fiscal year to a calendar year end (December 31st) is to meet the requirement for a listing on a national securities exchange.   My soon to be published report will elaborate on the biggest reason for INVU shares continue to underperform even though the company’s FREE CASH FLOW, Revenue and EPS growth has continued to break record after record.  It is because the shares are not listed on NASDAQ or the NYSE.  Upon the shares becoming listed my unadjusted share price target for 2022 is $0.30 based on my free cash flow yield metrics.  For more about my Free Cash flow Yield valuation metrics read 11/12/21, “Investview, Ridiculously Undervalued! Article”.

“Unadjusted” is included since it’s likely that INVU will be required to reverse split its shares for them to become listed.  The table below depicts that based on a pre-split or a post-split price 100,000 INVU shares @ 4/2/22 are projected to be valued $30,000.

As soon as Investview announces the split and the split ratio, the $0.30 target price for 2022 will be adjusted accordingly.  Subscribe to ShinyPennyStocks.com to receive alerts about the reports which are published by the website. 

I highly recommend that that INVU shares have a 5% of a portfolio weighting.   It’s especially since I have predicted that the Secular Bull market which began in March of 2009, ended on January 4, 2022.  See my 03/20/22  “Due to inflation’s effect on PE, S&P 500 to decline 45%” article.  It explains that a new secular bear, the first since 2000-2009, began at the early January all-time  high.  Based on the prior secular bears, which are depicted in the table below, the S&P 500 will decline by a minimum of 47% and will have a minimum duration of 8 years.   The asset class which produces all of the long-term capital gains during a secular bear are small companies and those which have low stock prices.

The educational videos below about secular bear markets are highly recommended.  “Proven Secular Bear investing strategies” explains why low-priced shares and shares of small companies are best to own during the new secular bear market which has begun.   “Why the worst performing stocks during a secular bear were always the best performers of the prior secular bull” explains why high priced and blue-chip shares decline during secular bears.

The three leading US based sharing economy companies are anticipated to launch their IPOs during 2019.  Lyft in being the first to file its IPO registration statement last week will likely be the first to launch an IPO even though it was founded after UBER and Airbnb who were the founders of the sharing economy.  However, what UBER should be famous for is originating the Wealth Sharing financing strategy for startups.  The strategy enabled UBER to raise the just-in-time capital that it needed to support its exponential growth and at increasingly higher valuations.     

After UBER successfully launched in its first city, San Francisco in June of 2010, it launched its seed round financing to raise $1.25 million in October 2010 at a post money valuation of $5 million.  There were 32 lucky investors who each invested an average of $40,000.  At December 31, 2018, a $40,000 investment in UBER had appreciated to $540 million.

The strategy that Travis Kalanick, the founder and CEO of UBER came up with was bold and brilliant.  It’s because Mr. Kalanick had the wherewithal to fund the entire $1.25 million himself.   In April 2007, Red Swoosh which he cofounded was sold to publicly traded Akamai Technologies for $17 million.  Instead of funding UBER’s first round, Mr. Kalanick allocated the funding round to a group which included strategic investors who could increase the probability of the company being wildly successful.   In the round there were four venture capital firms and 28 individual investors.  Below are some of the individual investors and why I believe that they were invited to invest in UBER’s first round:

• Sean Fanning  Kalanick and Fanning were kindred spirits. The 19 years old Fanning became a rising new star in the tech world when he co-founded Napster, the very first digital disruptor in 1999.  After copy right infringement issues surfaced in 2000 Napster did not survive.   Kalanick who is four years senior to Fanning founded the Scour Exchange in 1998, which had to file for bankruptcy in 2000 due to its having copyright infringement issues. 

• Jeff Bezos – The Amazon founder and CEO being on the list enabled UBER to have instant access to Amazon’s visionary investors who were close to Bezos.

• Troy Carter – Was the manager of many of the top music stars including John Legend and Lady Gaga.  Having celebrities tweeting about how easy it is to use an UBER car was a no brainer.

• Brian Chesky – Was the Co-founder and CEO of Airbnb which was founded before UBER.  Chesky who is five years younger than Kalanick was also one of the upcoming leaders in the tech world and a co-founder of the sharing industry.  Having Chesky as an investor enabled UBER to potentially leverage Airbnb’s investor base. 

• Gary Vaynerchuk – Was a founder of company which provides social media and strategy services to Fortune 500 companies including General Electric, Anheuser-Busch, Mondelez and PepsiCo.   To keep advertising costs down UBER had to utilize social media to penetrate the market.  

• Naval Ravikant – Had founded AngelList, a website which introduces startups to angel investors.     

• David Sacks – Member of the PayPal Mafia, a group of ex-PayPal employees who used their instant wealth from it being acquired by eBay to invest in startups including their own.  The PayPal Mafia which includes Elon Musk, Reid Hoffman the founder of LinkedIn and Peter Thiel the first investor in Facebook is famous for creating a whole new wave of technology.

All of UBER’s first round investors were not strategic or connected.  Cyan Banister, who was an UBER angel investor subsequently became a partner at Peter Thiel’s Founders Fund.  She has spoken publicly about going from living on the streets as a teenager to making multi-million dollar technology investments.

Mr. Kalanick was able to create enormous goodwill with those who invested in its first round.  The goodwill was leveraged by UBER to raise the just-in-time needed capital and to minimize its marketing and advertising expenses.  The table below provides details about UBER’s funding rounds and valuations for the first five years that it raised capital.  Four months after UBER went 100% digital with its successful launch in San Francisco it raised $1.25 million at a $5 million valuation.  Another four months later UBER’s valuation had multiplied by 12 times.  Thirteen months after the founders round investment was made it had multiplied by 66 times.  In December 2014, which was four years and two months after the October 2010 founder’s round the valuation had increased by 8200 times.  In less than five years an October 2010, $10,000 investment in UBER appreciated to $82 million.  Everyone who invested in UBER from October 2010 through June 2014 made a minimum of 2.9 times their investment by the end of 2014.  

UBER was a low risk and high reward investment opportunities for the 32 who invested.  It’s because they invested into a digital disruptor at the optimum time which is after the model has been perfected.  The video below entitled “Digital disruptor companies have the potential to get $10 billion valuations quickly” is about UBER perfecting its model.  

Mr. Kalanick’s financing strategy for UBER was bold.  Because of his experience with Red Swoosh, the tech company that he founded and sold he knew that the 25% dilution from UBER issuing shares at a post funding valuation of $5 million could reduce the long term value of his and the other founder’s stakes by billions.  Yet, he purposely made the decision to raise capital for UBER at a discount to the much higher valuation that it could have received since it had successfully launched in San Francisco four months earlier.  This is the first time throughout my 42-year career that I have witnessed a CEO valuing a startup at a discount for the purpose of increasing its value long term.  Mr. Kalanick is a true visionary entrepreneur. 

At this point in my career my love is to identify startups for my subscribers to invest in which have huge upside potential.  Subscribe to TrophyInvesting.com to gain access to the startups which I am recommending.