Date : October 8, 2017
With the Fall trading season getting underway now full steam, we have been on quite a streak, nailing between 20-40% now on our last five picks in a row. Note, in the past, we have had streaks like this that got into the double digits in terms of the number of big winners in a row, so this is hardly unprecedented.
We’d like to take all the credit for that. But the reality is: this is a spectacular market environment for small and microcap stocks. The IWC ETF of microcaps is having one of its best two-month periods ever. Speculative money is pouring in. And we are seeing one stock after another take flight. The opportunities are best in the technology space, where innovations are forging a new path in how we live our lives every day.
Our newest pick is a perfect example. Imagine being able to use an app to talk to people in faraway places in foreign languages. We think this is a stock on the verge of some major buzz. The company has very deep pockets backing it already, and we are seeing huge organic user growth out of the gates with a massive potential end market.
Company: Hello Pal International Inc.
Latest News: http://finance.yahoo.com/q/h?s=HLLPF+Headlines
Who is HLLPF
Hello Pal International Inc. (OTCMKTS: HLLPF) is an emerging opportunity in the social/mobile messaging app space.
The company has particularly strong backing at present. Hans Xu is a key managing partner at NewMargin Ventures (China’s third largest venture capital fund with over $3B under management). Mr. Xu is also a Special Advisor to Hello Pal and believes so much in the company’s potential that he recently became one of Hello Pal’s largest shareholders himself.
Those are deep pockets, and the right type of pockets. But why would someone like Mr. Xu be so convinced?
That’s the key: HLLPF has a powerful product. The company’s flagship app offers its users the ability to bridge the language barrier in real-time.
This revolutionary product allows users from around the globe to seamlessly connect and converse in foreign languages using their own voice.
The company’s newest companion app release also integrates a sharing economy solution to travel that works like a more social version of Airbnb.
One very encouraging data point that jumped out to us in our research is the fact that the company has thus far allocated $0.00 to its marketing budget, and has still managed to build a huge user base over 2M strong and growing. In the mobile app space, word-of-mouth success is often a critical indicator of growth potential.
Finally, given that the app is, by definition, globally useful, the potential market size is as big as the planet and everyone on it. So, the sky is literally the limit here.
A few weeks ago, the company came out and hit the newswires with its announcement of the successful launch of its first companion app “Travel Pal”.
According to that release, “Travel Pal is the Company’s second major app release and targets the travel sector by encouraging ‘social traveling’ among its users, where traveling can become much more social through the interaction with locals as well as with other travelers going to the same destination. Hello Pal considers itself a pioneer in the travel app space following successful travel disruption startups such as Airbnb.”
The company also more recently announced that it has released its Moments feature on both Hello Pal and Travel Pal.
The communication notes that “The Moments feature allows users to share ‘moments’ of their lives, in the form of pictures, short videos, audio and text, with other users on the platform. Users are now able to express themselves more easily and to the world at large through just a single post, and have other users react and comment on it together.”
Both of these announcements follow the company’s report on the successful closing of funding producing gross proceeds of $1,207,550 – by way of the issuance of a total of 8,050,331 units at a price of $0.15 per unit. The units are in lock-up until later this year, so they can’t come onto the market as supply at this point.
According to the company, proceeds of the Financing will be used for developments to the Hello Pal Platform and general corporate purposes.
There isn’t a whole lot we can do with technicals on this stock at present because it is only just now starting to trade with liquidity on the tape. However, we can determine a few things and pick up some clues.
First off, an illiquid stock is going to fall in price for purely mechanical reasons (which can create tremendous market opportunities). That’s just the way of the world: sometimes, insiders or founders or employees with stock-based compensation need to monetize a little of their holdings for reasons that may have nothing to do with the company – it could be tax-related, or they might just need the money for something else. In any case, the thin tape can’t absorb the supply, so the price falls. And for the very same reason, buyers are reluctant to move in until the tape is more liquid.
In an early and emerging play like HLLPF, we often see a sharp drop out of the gates until the stock starts to thicken up on the tape. At that point, things can inflect back to the upside – sometimes aggressively.
So far, the stock looks to be thickening up and holding key support in recent trade. It may be time right now to give this one a very close look. This might be an opportunity to board a skyrise elevator in the basement.
HLLPF (Hello Pal International Inc.) is a company with an overriding mission to “bring the world closer together through social interaction, language learning and travel.”
Company materials make a case that “by creating a platform where it is easy to instantly interact with others around the world, and giving them the tools to communicate with each other in a joyful and fun way, we hope to do our part (however small) in fostering understanding and tolerance between all citizens of the world.”
The principal asset is the “Hello Pal Platform” – a proprietary suite of mobile applications built on a user-friendly messaging interface that focus on social interaction, travel and language learning. Hello Pal has been designed from the ground up to be easy to use and enables users’ freedom to speak in their own language regardless of the other person’s language they are speaking to.
Hello Pal was the first app released to the public and experienced rapid growth building a diverse and active global user base. Travel Pal is the first companion app to launch and benefits from this broad-based group of users. Each new app will launch with this established rapidly growing user base accelerating their adoption.
- HLLPF has powerful financial backing from one of China’s Largest Investment Funds.
- HLLPF has shown organic user growth, recently surpassing 2M users.
- HLLPF is starting to see growing liquidity and trading activity, which often signals some committed investment flows and a strong base of support at present levels.
- HLLPF has a potential end market that truly encompasses the entire world given that its flagship product platform is driven by a real-time translation engine with worldwide application.
- HLLPF recently completed an oversubscribed financing for gross proceeds of $1.8M to fund aggressive expansion and user growth.
HLLPF is interesting for many reasons. The organic user growth, and the big end market are very compelling points, as is the backing from a monster VC firm. The company looks to set to generate some huge buzz in the days and weeks ahead.
This could be a major opportunity and we wouldn’t want you to miss out.