LONG $IONI @ $.16 - I-ON Communication Corp UpsideTechnical 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.
