RichTV Live is all about finding stocks that are underappreciated, undervalued, and underexposed. While the cannabis sector continues to hobble into autumn, Rich decided to bring his community members an exciting tech stock: Victory Square Technologies Inc. (CSE:VST) (OTCQX:VSQTF).
Victory Square builds, invests in, and acquires startups before ultimately providing the senior leadership and resources needed to fast-track growth. This results in rapid scale-up and monetization, which usually only takes 24 to 36 months. Victory Square already has a proven track record of both public and private exits.
“This is a holding company growing through investment and acquisition,” says Rich. “They are acquiring their growth rather than growing organically, which gives me the opinion that they’re going to grow exponentially.”
Victory Square’s Operations and Performance
Victory Square’s winning strategy to success is to identify a business idea, build a team, and provide resources, hands-on support, and capital to help the business grow and succeed.
VST’s “sweet spot” is the tech industry, specifically technology that’s shaping the “4th Industrial Revolution.” Its portfolio consists of 20 global companies that are using Artificial Intelligence, Virtual Reality/Alternate Reality, and blockchain to disrupt a diverse range of sectors such as fintech, insurance, health, and gaming.
According to the company’s highlights, VST has already invested $10 million across ten separate companies, though it’s evaluated as many as 600. Its current value is estimated at $71 million, and its projected revenue for 2019 is $20 million.
Thus far into the year, Victory Square has generated $16 million in revenue, so it doesn’t have much farther to go in order to reach its goal. The 2019 fiscal year represents VST’s third consecutive year of consistent and remarkable growth.
“We’re talking about a company that is growing exponentially year after year,” says Rich.
Despite this impressive position, VST stock has fallen from a tremendous high over the last two years. At the end of 2017, the stock price was $2.80. Since then it has trended consistently downwards and now rests at $0.18.
But Rich is optimistic about the future of VST.
“In my opinion this is the type of company that we could see go back to a dollar,” he says. “When? I have no idea, but I do love the share structure—only 73 million shares issued and outstanding.”
Rich says that, in discussing Victory Square’s market performance with the company’s CEO, he was told that VST has been focusing less on the markets, and more on the business.
Victory Square’s Recent News
Back in August, Victory Square Technologies filed its consolidated financial statements for 2018. That year, the company added 11 companies to its profile and was able to increase revenue by more than 500%. It also raised its working capital by $3,128,864 and raised its portfolio investments by $4,883,293.
Three of VST’s portfolio companies—which are almost all high-profile Software-as-a-Service companies—are expected to hold their initial public offerings this year.
“Another thing … that I found very interesting, is that the CEO said VST is interested in the cannabis sector,” says Rich.
It will be interesting to watch how Victory Square’s portfolio companies perform in the rest of the year and to see where VST expands into next. Keep watching RichTV Live for more news from this exciting company.
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