Low-Priced Stocks 841

This stock is a penny stock and is only suitable for the speculative portion of your portfolio.

*KonaTel, Inc. (KTEL)
KonaTel provides cellular products and services to individual and business customers in various retail and wholesale markets in the U.S. KonaTel’s subsidiary, Apeiron Systems, is a global cloud communications service provider employing a dynamic “as a service” (CPaaS/UCaaS/CCaaS/PaaS) platform. Its other subsidiary, Infiniti Mobile, is an FCC authorized wireless Lifeline carrier with an FCC approved wireless Lifeline Compliance Plan, authorized to provide government-subsidized cellular service to low-income Americans.

KonaTel revenue grew to $9.5 million in 2020, up 2% from 2019. The uptick was due to increasing work-from-home usage trends and strong organic growth in its Hosted Services business. Quarterly revenue grew 36% yoy to $2.6 million, its highest growth rate in years.

Outlook for revenue has also drastically improved due to the Biden Administration’s pledge to allocate more funds to the Lifeline program. This would increase monthly revenue by as much as $300,000, which would bolster the company’s growth.

Net income jumped to $238,618 in 2020, up significantly from a net loss of $1,585,000 in the prior year.

For a stock that was trading on the OTC Pink Sheet Markets one year ago, KonaTel has great fundamentals. Cash and cash equivalents grew to $715,195 in 2020, up 273% from $191,474 in the prior year. Total liabilities are down to $1.4 million, which is attributable to lower accounts payable.

Insiders account for 85% of the outstanding shares. The largest holder is CEO and President David McEwen, who holds 13.5 million shares.

The ideal entry point for the stock is under $0.50, but the stock could easily trade over $1 if the Lifeline program grows as expected.
Faris Sleem, The Bowser Report, thebowserreport.com, 757-877-5979, May 2021

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