Telco Cuba Inc (OTCMKTS:QBAN) Poised to Rise After Being Awarded Enterprise Infrastructure Solution Contract

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Telco Cuba Inc(OTCMKTS:QBAN) shares were up 500% at one point in a single trading day recently, and the stock could continue to build momentum off of its meteoric rise. Moreover, the company recently became current, after an attorney opinion letter was filed with OTC Markets. Let’s get right into things and take a look at why Telco Cuba Inc could still be on the rise.

 

Telco Cuba Inc recently engaged with the office of John T. Root, Jr. to be its special securities counsel. In the attorney letter with respect to current information, QBAN’s special securities counsel reviewed various disclosure information and other publications in order to get the company current. Now that the company is current with its information, we’re able to properly analyze the company.

 

Most recently, the U.S. General Services Administration (GSA) announced awards for 15-year, $50B Enterprise Infrastructure (EIS) contract to 10 companies. Now, the RIS is a government-wide contract, providing federal agencies with mission-critical telecommunications, infrastructure, and information technology (IT) services. The Telco Cuba Inc(OTCMKTS:QBAN) and Team MICROTECH were part of the 10 companies that were awarded these contracts.

According to the U.S. GSA’s Federal Acquisition Commissioner Alan Thomas, “The award of EIS is a major milestone that demonstrates GSA’s continuing commitment to giving federal agencies forward-leaning and flexible contract solutions that are designed in collaboration with our industry partners and provide streamlined access to mission-essential, cutting-edge services. I applaud the great work the EIS team did to get us to the finish line. This contract is essential to our customer agencies as they improve operations and citizen services into the future.”

 

Now, let’s get into some company specific details. Telco Cuba recently provided a quarterly report, outlining the period ended on May 31, 2017. The company currently derives its revenue primarily from its colocation, hosting and software development services offered by its subsidiary, Amgentech Inc. For the period ended on May 31, 2017, Telco Cuba reported a decrease in its revenue year over year. However, the decrease in revenue was attributed due to reduced pricing and customer attrition.

 

Although the company reduced its pricing and there was customer attrition, that could all change. With lower prices, Telco Cuba Inc could attract more customers over the long term, leading to a potential increase in revenue.

 

The company also reported a decrease in its net income year over year. The significant fall in its net income year over year was attributed to the company’s extinguishment of debt, decrease of SG&A expense and change in fair value of derivative liability. Since Telco Cuba extinguished its debt and is not burdened by debt payments, it’s able to focus on its core business operations and expand its business. Additionally, the company decreased its stockholders’ deficit, indicating it could be turning around and potentially increase shareholder value.

 

Not only that, but EMA Financial LLC recently disclosed that it has over 13M shares and a 9.9% ownership in QBAN’s shares of common stock. This could be an indication that investors are gaining confidence in the stock.

 

With the company being awarded a contract, according to its Twitter page, it could increase its net income and revenues significantly within the foreseeable future. The company has had multiple catalysts recently, pushing the stock higher. Once market participants catch wind of this news, they could potentially enter into the stock long and increase the buying pressure and momentum. If you missed any of this news, you might want to sign up to our 100% free newsletter to stay up to date on QBAN. All you have to do is enter your email address in the box below, and we’ll send you updates, if any, on QBAN.

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