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Hello fellow investors / traders,

 

We had some awesome trades last week, with real potential tradable gains of over 450%.

Now we've got a solid line up of trade ideas for this week and it all starts tomorrow.

It's time to pull up QPAG on your screen.

QPAG got my attention for several reasons, the first of which was the technical setup.

It closed today at $0.375 after slowly pulling back from its recent highs of $0.92 just a couple months ago.

QPAG also has a 52 week high of $1.31.

As it sits now, QPAG is right above its multi-month support. We think there could be a major bounce in store, and is why we think it could be a great potential risk v reward trade over the coming days.

A modest move back to either its 50 or 100 day moving average, we could see gains of 30% and 65% respectively. Of course our ideal scenario would be a re-test of recent highs at just over $0.90.



We dug deeper into the financials of QPAG and we were pleasantly surprised at what we found. 

Per its most recent 10Q filing with the SEC, the Company has net assets of almost $800k, and a strong working capital position of over $500k.

Even more impressive is that QPAG delivered revenue growth of over 285% for the nine month period ended 30 September 2016 from the same period the year before.

This is exactly the kind of top line growth and strong financial position we like to see from a small cap growth company.


Major News

Just over a week ago, QPAG announced the expansion of its network of self-service kiosks into Mexico City's Metro System.

With 12 lines covering 226 Km., and over 180 stations Mexico City's Metro System carries over 1.6 billion passengers per year, or an average of over 4 million per day, and is considered among the world's eighth largest.

Pursuant to permits issued by STC to QPAGOS' wholly owned subsidiary REDPAG Electrónicos, SAPI de CV, three kiosks were installed today in Observatorio station. Observatorio is one of Metro's busiest stations with average daily passengers of 77,205, as per STC data of 2016.

Metro passengers, in addition to topping up their mobile phones in an expedient and secure manner, will now also be able to make multiple payments in Qpagos' kiosks, including bill payments for utilities, municipal payments to the City of Mexico and other States, and several others payments such as CableTV subscriptions.

"Our expansion into the vast Metro System is something we have been anticipating with enthusiasm as we are eager to bring payment services closer to the consumer and allow them to make their service payments in the locations they visit most frequently," commented CEO Gaston Pereira. "The plan is to expand into the other stations as we continue to secure these permits from the STC."

This appears to be a major catalyst that has excited many new investors, and is something defintely worth paying attention to for those who believe in QPAG's growth trajectory.

About QPAG

QPAGOS Corp (QPAG) is a US based Company that delivers state-of-the-art digital payment services to consumers and service providers in Mexico where 60% of the adult population does not have a bank account and where 80% of personal payments are made in cash.

It operates a network of self service kiosks and applications that provides more convenient payment alternatives for consumers and more efficient billing for service providers.

Over 160 service providers accept payments through the QPAGOS network including every mobile network like TELCEL and MOVISTAR, cable operators like SKY and DISH Network, national housing lender Infonavit, and government bureaus like State of Queretaro, State of Mexico, and Mexico City.

The network allows consumers to deposit cash and easily pay bills, add mobile minutes, purchase transportation tickets, shop online, pay taxes, pay insurance premiums, transfer funds to friends, pay credit installments, plus a host of other services.

To its users it means no more waiting in line or trying to find a remote location to make frequent payments. For service providers, it contributes to expand their national collections footprint while reducing transactional costs. For our distributors and franchisees, it provides a very attractive source of income, as they are able to monetize high traffic physical spaces. And for advertisers, it offers a new channel to attract business and interact with customers, given that QPAGOS self-service kiosks have an integrated second screen to broadcast advertising spots and messages.  

And its not just self service kiosks that powers the QPAG network. They also utilize mobile phone apps,  web services and point-of-sale (POS) systems. You can see the entire product universe that QPAG employs at http://www.qpagos.com/en/enterprise/products

The list of major corporations utilizing QPAG's technology is very impressive. Nextel, Movistar, Telmex and Telcel are just a few on board as of right now, and no doubt this list will continue to grow.

You can learn more about QPAG and its products and services at http://www.qpagos.com/
 

Here's how we see it...

QPAG has a very nice technical setup. Trading just above its multi-month support, and with large double digit upside to its moving averages (and over 200% upside to its recent trading highs), we think QPAG could be a great risk v reward trade. 

In other words, the potential rewards vastly outweigh the risks (assuming you stick to your trading rules by honoring stops etc).

QPAG also has a strong balance sheet and excellent recent revenue growth per its latest 10Q filed with the SEC.

We also think the recent news coming from the Company could continue to act as a strong catalyst as new investors see the growth potential of QPAG.

QPAG ticks many of the boxes for an ideal trade. Make sure you do your research and be ready to trade.

As always, I'll touch base in the morning.