From my analysis of Investview’s Financial Statements, I discovered five reasons why the company’s shares are ridiculously undervalued at any price below $0.10. The shares closed at $0.07 on Thursday, November 11, 2021.
If Investview shares were listed on the NASDAQ or NYSE, they would trade in a range of $0.18 to $0.30 (pre-reverse stock split). The share price targets are based on Investview’s existing Free Cash Flow (FCF) and Free Cash Flow Yield assumptions of 3% and 5% which value the company at $540 million and $900 million respectively. According to my comparative Price to Sales ratio analysis Investview should be valued for $630 million, equivalent to the share price of $0.21. Based on the $0.07 closing price of the shares on 11/11/21, Investview’s market capitalization was $209 million and its Free Cash Yield was 12.4%.
Investview announced their intentions to up-list to the NYSE or NASDAQ earlier in 2021.
ShinyPennyStocks.com recommends that the shares be aggressively purchased via market orders as soon as possible and by the close of the market today, Friday, November 12, 2021. Investview will report its second-quarter ended 9/30/21 on or before Monday 11/15/21. Based on my findings the probability is very high that Investview’s share price will gap to above $0.10 due to its results far exceeding expectations.
Investview’s shares have remained under pressure since the company announced that its former CEO Joe Cammarata was arrested for securities law violations on 11/8/21. The company issued a press release about its not being involved or even privy to Cammarata’s side business dealings. Also, see my 11/5/21 update, which covered the Cammarata incident.
Investview (symbol: INVU) shares are ridiculously undervalued for five reasons:
- The share price has not yet reflected INVU’s exponentially increasing revenue from NDAU Packages, its new cryptocurrency product. The new revenue segment, “Cryptocurrency revenue”, which contains the revenue from the sales of the packages was first disclosed in Investview’s annual report fiscal year ended March 31, 2021.
The new segment got lost in the shuffle* because 100% of the $764,000 of Cryptocurrency revenue for fiscal 2021 was generated in Investview’s 4th quarter ended March 31, 2021. For its 2022 first fiscal quarter ended June 30, 2021, Investview reported $6,405,306 of Cryptocurrency revenue, an increase of 738% versus its fourth fiscal quarter of 2021.
*The opportunity to purchase INVU shares at a deep discount is because public companies do not produce or file financial statements for their fourth quarters. For its first quarter, Investview’s aggregate revenue increased to $25,625,000 from $5,589,000 in the year-earlier prior quarter. The Cryptocurrency revenue segment accounted for 25% of total revenue. The table below provides a breakdown of Investview’s three revenue segments.
2. Investview is the only publicly traded Bitcoin miner in the table below to have reported positive operating cash flow and free cash flow for the latest 12 months.
3. Investview’s “Price to mining sales” ratio of 10.63 is the lowest of the four miners in the table below which depicts their price to sales ratios based on trailing 12 months (TTM) revenue.*
Should Investview’s price to sales ratio for its TTM mining revenue climb to HUT’s, the miner with the second-lowest P/S ratio of 27.2, the company would be valued at $633 million equivalent to a share price of $0.21.
*Note. Investview’s ratio in the above table was exclusively calculated from its mining revenue segment for the latest 12 months. Based on total revenue, Investview’s price to sales (P/S) ratio is 2.0. The ratio is ridiculously low for a company that reported 500% revenue growth and Net Income of $10.5 million for its most recent quarter.
4. Revenue has reached the $100 million threshold. Based on its reporting of $25,626,565 revenue for its June 30, 2021 quarter Investview’s annualized revenue is now over $100 million. A company reaching the $100 million threshold is significant. Many mutual funds and hedge funds have mandates which require that any public company they invest in have a minimum of $100 million of revenue.
5. Improvement in gross profit margin. The adding of the new revenue segment significantly improved Investview’s gross profit margin. For its quarter ended 6/30/21, Investiew’s gross profit margin was 91% as compared to 84% for the year-earlier quarter. Throughout all of my 44 years of analyzing Financial Statements, I cannot ever recall finding a public or a private company that had a gross margin of above 90%. What was also extremely impressive was Investview’s Receivables. The company’s Balance Sheet for its quarter ended 6/30/21 included $2,062,140 of Receivables. This compared to $1,672,310 for the prior-year quarter. A 23% increase in Receivables accompanied by a 358% increase in total revenue is unheard of. To say that Investview is firing on all cylinders would be an understatement.
The five reasons above support Investview and its shares being ridiculously undervalued. The number one reason to buy and hold the shares is Investview’s Free Cash flow. Positive operating and free cash flows are a guaranty for no dilution. Assuming that Investview’s FREE Cash Flow remains at or above the quarter ended 6/30/21 it will produce $27 million of FREE Cash Flow for its fiscal year ending 3/31/22. With its most recent market cap of $209 million, Investview’s FREE Cash Flow yield is 13%.
In 2003, I recommended Investools which had a model and a cash flow yield similar to Investview’s at a price of $0.20. After the share price reached $18.00 the company was acquired by Ameritrade.
Below is the “Free Cash Flow” video which is about how I utilized my cash flow analytical expertise to find ridiculously undervalued penny shares.
Based on my experience companies that are growing steadily and have low Balance Sheet risk are long-term buy and holds at 3% to 5% FREE Cash yield valuations. Therefore, the range for Investview’s market cap should be between $540 million and $900 million. The valuations equate to share prices ranging from $0.18 to $0.30 for the next 12 months.