Investview $INVU Update--"If you live long enough you'll see everything at least once"
Hey Subscriber,
Quite a morning...about 6 am MST I received a text from an All-Access member with this shocking story--that Investview CEO Joseph Cammarata had been arrested by the FBI/SEC for running a $40 million Shareholder Lawsuit Settlement scheme.
I wish I was kidding.
Here is an article that explains the scam.
What Should You Do?
My advice is to NOT sell--for a number of reasons--and we actually BOUGHT shares into this insanity for multiple reasons mentioned as follows:
#1 What is head shaking is that under Mr. Cammarata's direction, Investview transformed from a money-losing company to one earning upwards of $5-$6 million per quarter...an amazing turnaround that was what drew us to research this amazing corporate turnaround in the first place (plus bitcoin mining stock at a bargain price).
#2 NONE of the INVU business model or profitability has changed. The BTC mining business is running at record profits. The Safetec BTC/ETH miner repair business is reportedly recording record revenues and with the conversion of Ethereum blockchain from "proof of work" aka digital mining to "proof of stake" coming in the first quarter of 2022 (where blockchain services go to validators who own a minimum 32 coins of ethereum), there will be a lot of ETH mining PCs that will need to be upgraded or changed to BTC.
#3 The INVU outstanding share count will be cut by 33-50% as ALL INVU shares sold to and paid to Mr. Cammarata will be canceled and options were withdrawn. That will (in time) make the remaining shares significantly more valuable AFTER this shocker is absorbed
#4 CFO/COO Ralph Valvano will stay as CFO/COO. He comes with a rich sparkling resume on Wall Street (see link above) and will lead the entire operations team through this eye-popping fiasco. Board member Jim Bell will step in as CEO.
#5 The INVUP preferred shares have 2.5 YEARS of 13% dividend yield escrowed in the bank. After this shitshow (that is a technical term :) cools down and cooler heads prevail, they will get listed on the NASDAQ platform for trading. SINCE they are senior to the common shares with a par value of $25--they are absolutely safe and covered by the $4-5 million in quarterly INVU profit.
#6 I am advising the company to use this opportunity to split the remaining INVU shares to get the share price necessary to uplist to the Nasdaq market to get off the OTC. This IMO would start the institutional process of INVU being valued at the same multiple as other SMALLER bitcoin miners.
For example, look at the market cap of newly IPO'd bitcoin miner Stronghold Digital Mining (DIG) . . . it has a $1.5 BILLION valuation yet they mined LESS bitcoin than INVU in the last two quarters--that is insane.
DIG 6 Months Revenues 2021
Six Mos. Ended June 30, 2021 $ 7,886,602
Period DIG Operating Profit (Loss) Operating Margin Six Mos. Ended June 30, 2021 $ (4,007,044) -50.8%
INVU
Investview (OTCQB:INVU) reported gross revenue of $7.6M (+166% Y/Y) for July 2021.
As of July 31, digital currency holdings were $7.2M in Bitcoin and NDAU.
The company held cash and restricted cash of $15.8M by the end of the month.
#7 Given what we know now, it is obvious that members of the Cammarata crew were selling shares into this event they knew perfectly well was scheduled to happen today. Those sales that brought the INVU share price down over the last month will be canceled and those shares will be undoubtedly returned to the INVU treasury.
Management is obviously in shock and has circled the wagons to stop the bleeding and regroup. I feel like the day I was interviewed on a negative article I wrote on Bernie Ebbers CEO of Worldcom--but at least I knew they had shoddy fake accounting going on. I also shared with my ChangeWave subscribers that after meeting Ken Lay (via a common friend who lived next door to him in Aspen) what an idiot Ken Lay was and why I would never own Enron stock.
But neither I nor any of the Board of INVU saw this coming and neither did the insurance company that examined him for corporate E&O insurance.
Nonetheless, the question now is how I and other shareholders and advisors can help INVU get back on the horse and emerge a stronger company out of this shocking turn of events. I will get them a full set of my recommendations on Monday morning.
And folks I apologize--after 21 years as a professional stock picker we have avoided a LOT of stinkers (Worldcom and Enron the biggest) but about every 10 years something out of the blue hits a company I endorse and recommend and it hurts and stings.
Here is the updated official response from Investview, Inc. Board of Directors--but my advice is to NOT to sell into this shit show but buy. I would at least wait till year-end to let them clean up the mess and, if they don't, THEN sell underwater shares for capital gains tax harvesting.
Note: We purchased 250,000 shares this morning into the confusion around 7 cents which takes us up to 500,000 INVU shares in total in our TR Wealth Management LLC.
Advice: BUY INVU under .12 as they get back up on their feet and are ready to report RECORD revenues and earnings on their BTC mining operations for October (with BTC moving from $5,000 up in value from September).
IN BETTER NEWS!
We scheduled another Zoom call with Jay Hatfield, the portfolio manager for AMZA to hear his forecast for oil/natural gas/coal prices for the first half of 2022. He was dead right (us too!) on our $75 oil $5 nat gas pricing with our mutual forecast of Delta variant peaking mid-September (thank you John Hopkins Infectious Disease researchers!).
I'll open this up to the full subscriber base (not just the All Access folks) so everyone can hear the ALWAYS opinionated JH (whose opinions on energy pricing have been spot on!).
Best way to join online from a PC/Mac/Ipad/iPhone/Android device
Nov9Tue ENERGY & RATES OUTLOOK- SCHEDULED FOR… View on Google Calendar When Tue Nov 9, 2021, 2:30pm – 3:30 pm (MST) Where https://us06web.zoom.us/j/87632833055?pwd=VkZaYmNiTGpORlIvUkVlQjRhTkdQQT09&from=addon
Jay Hatfield, Craig Starr* Tue Nov 9, 2021, 2:30pm Mountain Standard Time 4:30 Eastern Standard time ENERGY & RATES OUTLOOK- Join Zoom Meeting https://us06web.zoom.us/j/87632833055?pwd=VkZaYmNiTGpORlIvUkVlQjRhTkdQQT09&from=addon
Meeting ID: 876 3283 3055 Passcode: 311834
One tap mobile +16465588656,,87632833055#,,,,311834# US (New York) +13126266799,,87632833055#,,,,311834# US (Chicago) Dial by your location +1 646 558 8656 US (New York) +1 312 626 6799 US (Chicago) +1 301 715 8592 US (Washington DC) +1 346 248 7799 US (Houston) +1 720 707 2699 US (Denver) +1 253 215 8782 US (Tacoma) Meeting ID: 876 3283 3055 Passcode: 311834
To find your local number: https://us06web.zoom.us/u/kbn7xnbxrv
I foresee an EARLY cocktail hour today AFTER we get the first part of the 2022 Transformity Research Gameplan and Playbook out!
Have a great weekend!