With more than 500% stock returns, the moth of October was a busy month for those following InterActive Leisure Systems, Inc. (IALS). In less than three days, the market saw how more than 10 million shares changed hands. That’s a significant event for IALS, which had trading volume of less than 1 million shares in the last three months. The reason to explain the massive market move is a Letter of Intent (“LOI”) to a privately-owned company in the consumer and corporate travel industry.
See the company’s share price dynamics before we offer additional information:
As of October 24, 2019, Qest Corp or InterActive Leisure Systems reported that the company had sent an LOI to a target with estimated revenue of $1.3 billion. The market does not have the name of the target. Thus, we will note all the information provided by InterActive Leisure Systems. It appears to be a massive company, which explains with the following words why the share price spiked up:
“With locations world-wide, the target company was established over 45 years ago and has an estimated annual revenue of $1.3b. It is considered one of the leading privately-owned travel and leisure companies throughout the United States and has over 2,000 employees.” Source: Press Release
Without information about the name of the target, the most relevant is that the companies expect an agreement in Q1 2020. We need to remember the date. Let’s keep in mind that an agreement will most likely push InterActive Leisure’s share price up.
That’s not all. On October 28, 2019, InterActive Leisure reported that the company is about to reinstate Qest Corporation with the Nevada Secretary of State. As shown in the lines below, as of October 31, 2019, the company expects to submit all the documentation and fees. In November, the market will have to be ready to assess new press releases. Let’s stay tuned. The upward trend in the share price could continue.
Read the lines below for more details on the matter:
“All documentation and fees are to be submitted by October 31st, 2019 with reinstatement occurring mid-November 2019. In 2014, Qest Corp license was revoked and the company remained idle. On April 2nd, 2019, custodianship was granted and reinstatement was pursued over the last several months. Due to recent interest, with a privately-owned business, the finalization of revitalizing Qest Corp has been accelerated.” Source: Yahoo Finance
SHORT INTEREST AND CONCLUSION
Currently trading with more than $30 million, InterActive Leisure Systems, Inc. appears to have convinced many iHub members. Some of them believe that they know the target company. We would not go that fast. Yes, with the current market capitalization, many are taking the LOI very seriously. However, we will be expecting a confirmation from InterActive Leisure.
There is another valuable fact. According to the OTC Markets site, short sellers don’t expect the company to be an opportunity. As shown in the lines below, the short interest is equal to zero. That’s, without a doubt, a positive news for bulls.
Let’s see what happens in November! If the management continues to go in the right direction, the company could become even more interesting.
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Disclosure: We hold no position in InterActive Leisure Systems, Inc. (IALS) either long or short, and we have not been compensated for this article.