Post by
spstocks on Dec 28, 2014 5:47pm
MYEC: Surrounded optimism is eager to bid farewell to 2014
In the wake of the latest news plus earlier announcements through AGM, shareholders including me are surrounded by huge optimism for a quick turnaround expected to happen early 2015.
Several factors are to be considered and Risks/Rewards are to evaluate before we anticipate the share price rise as forecasted by several shareholders.
First lets talk about the Apps.
Risk: Although it is clear that these Apps are slated for a release soon, however, the question arises is 'When'. Is it ‘early/late Jan2015’ or ‘later’? Shareholders are little impatient now and the 'later' may bring some disappointment. Long investors may loose in the spread of rumors connected to yet another delays. This may help shorts and flippers or it may be even worse for them too as the delay may be 'never'. So, it’s a stopgap for now until the news about 'apps' release date is given or the release itself if announced.
Rewards: Imagine what would happen if the 'apps' release date or official launch itself is released as expected by shareholders. Investors will be more excited to buy in more as the apps launch is also coupled with the Bank's interest in partnering with MYEC's patented technology. Its may be a win-win situation for both Banks and as well as MYEC. This may trigger another revolution and new big deals may come in the way knocking the MYEC's doors. So, there is a biggest reward that MYEC and shareholders with one office App launch. This may take the share price to almost near to the 52week high soon like it happened in 2014 beginning.
Second, lets talk about Partner’s integration:
Risk: Partners launching their services/apps are very crucial to the MYEC's business and the partners itself. SIONIC is the biggest partner so far with other partners being VXGateway, Caulix, ITONICs. Other plays such as icard1 network, maverick, dollardays etc. are all part of the MYEC' partner network and any of them failed then it would add a little risk although not a big risk to the share price provided the MYEC's official launch is done. If the first one is not done itself, then the risk with partners will be resulting chaos.
Rewards: Partners launching their mobile/application services integrated with MYEC services will be a huge advantage for both sides of the business. The revenues will flow in in multiple directions will strengthen the MYEC business. It helps MYEC to build more infrastructures and strengthen its core business to move to the higher levels with the revenues.
Third, the Green Pay spinoff by MYEC:
Risk: GreenPay spin off is a crucial task for the company since the current legal marijuana industry is not fully matured and approved by many financial institutions and is a risk to MYEC. If the spin off did not happen there may be a chance that the apps launch may not progress as expected and that shows the sign of weaker support from federal banks and financial institutions. In my ‘personal’ opinion, this must be the first news to come out before any other news is announced. The risk of not able to complete this spin off soon may be multifold and weaker interest in the stock.
Reward: Legal marijuana industry could be bigger than NFL by 2020 with $35 billions according to the industry experts estimates. Green Pay spin off would open-up all channels and pave the way to MYEC to concentrate on the core business and help root them strong in the payment industry. Having already moved into new offices, MYEC is seem to be ready to announce the spin off soon. Spinoff of GreenPay opens ways to additional financial capability to MYEC to sustain for longer and improve the MYEC infrastructure either through the strong estimated revenues and a quick buyout of this revolutionary payment method helpful for MJ industry. Buyout of GreenPay will be a huge win and a continuous revenue streamer through the MYEC’s license (Ed Starrs owns it by the way with exclusive license to MYEC). This is also a big reward for the existing shareholders with additional shares of GreenPay although not free but will give scope to increase their overall portfolio value.
Fourth, the lawsuits by MYEC:
Risk: Lawsuits filed by MYEC on old supposedly partners and other securities companies are crucial in companies progress. Losing these lawsuits may be a big blow to MYEC and a damage to its reputation and to its share structure as well. Since it is tied up with the courts and law, it may not be an immediate threat given the case that the verdict may take long time. However, losing the lawsuit against Titans is going to be a big blow to the company's share structure as another 560+ millions shares are waiting to dilute in the market.
Rewards: Winning the lawsuits are crucial to the company to prove that they not only have the ability to protect the company's and shareholders interest but also to prove that they have the agile business structure. It proves the management and fills the confidence in the investors, partners and may lead to more big deals. Removing the fraud shares will strengthen the share structure. Putting down the stealers will not only earn some benefits out of the law suits but proves that the technology is unique and safe in its hands. The stock price may rise by another 50 - 60% with the news and even may double it in the event market considers its victory as a huge success.
Fifth, Reverse split and up listing to the upper markets:
Risk: Being labeled as pink and remaining in the pink category is definitely a negative point in the verge of making this as a aspirant buyout target. This is more a dependent risk on how the share price goes higher that decides the reverse split proposition and making it stronger against the volatility. Failure to uplist by the end of the year may extend its difficulty to come out of the pink labels although its a fully reported company and demonstrates its weaknesses beating the investor's confidence.
Reward: Taking out the pink mask will open wide range of options for the company to consider it as a payment hub for many many businesses. It helps to compete with the other competitors and improve the market capitalization. This will be subjected to Real time information, consensus ratings, institutional investors showing interest, analysts follow-up, mergers, acquisitions, buyout like several attractive things will line up and the company. These will easily rise the share price above the necessary pivot value. A reverse split before the uplist will just take it to new high as it will consolidates the share structure and will be subjected to appropriate valuation.
Many other things such as small time business partner ships, service licenses are not highlighted since these will be only be reflected in the revenues generated through those partnerships and license agreements. Line of Credit secured with TCA, at some point has to be relinquished which may pose little problem although negligible, if MYEC wants to participate in business coalitions with financial institutions who look at all the weaknesses first than the strengths as they may impact the financials of the company over some time.
Having said that, i am confident that MYEC is going in appropriate direction with required pace to march forward while dealing with small time /big time obstacles efficiently with its stronger management abilities. Its not tough to reach a Dollar Dream, if many of above rewards are attained in a timely fashion. Lapses may arise here and there but MYEC i believe has the ability to remove them quickly.
Watch out the events starting January 2015 and carefully evaluate your transactions to buy/sell the MYEC stocks in the light of above events and wish you all the best for the new year. Shorts are part of the game so without shorts there is no game. The ability of stock lies in its core business strengths and fundamentals but not in the hands of any of us.
I WISH YOU A VERY HAPPY AND PROSPEROUS NEW YEAR 2015.
- spstocks