As one of the OTC’s hottest stocks, Philux Global Group Inc. (OTC: PHIL) is grabbing investors’ attention after agreeing to acquire a controlling share in a Vietnamese company aiming to reduce carbon emissions. As this acquisition could be extremely profitable for the company, PHIL stock climbed by as much as 430% on the news and continues to garner interest from bullish investors. With the acquisition set to be closed in October, PHIL stock could be one of the stocks to hold this year in anticipation of more updates.
PHIL Stock News
Since its establishment in 1982, PHIL has always been engaged in mergers and acquisitions to provide value to its shareholders. Currently, PHIL is focused on investing in companies operating in sustainable agriculture, renewable energy, healthcare, and real estate. To achieve its vision, PHIL looks to acquire and merge operating companies to increase revenues and reduce operating costs. With this in mind, PHIL recently entered into an agreement to acquire a 51% interest in Vietnam-based Van Phat Dat Export (VPD). Operating in the export of agricultural products, raw materials, and live animals, VPD has been profitable since its inception in 2018 – generating $40 million in revenues in 2021 and reporting a net profit of $377 thousand. Considering the potential this acquisition provides to the company, PHIL stock could be one of the most profitable OTC stocks upon the closing of this acquisition.
According to this agreement, PHIL will purchase 5.1 million shares of VPD in exchange for $6.1 million which will be paid in the form of a convertible note issued by PHIL’s subsidiary – Philux Global Trade Inc. While the subsidiary is not a public company, PHIL intends to grow this subsidiary and spin it off in the future. On that note, PHIL identified other targets in the same industry as VPD to add under Philux Global Trade’s umbrella. With the acquisition of VPD set to close by October 15, PHIL stock could be one to hold this year as the company could announce other acquisitions for this subsidiary.
Despite the potential of VPD’s acquisition, investors are more bullish on PHIL’s agreement to acquire 51% of Tin Thanh Group (TTG). To facilitate this deal, PHIL will purchase 22 million shares of TTG for $60 million – with the deal expected to close by October 4. Considering the company’s business model of integrating acquired companies with other businesses, PHIL is currently choosing one of its subsidiaries to be the holder of TTG’s ownership – with the view of taking this subsidiary public.
Prior to this agreement, PHIL and TTG signed a business cooperation agreement to establish a new subsidiary – Philux Fidelity Global Group. This subsidiary will then act as a parent company that will explore targets to accelerate solutions for climate change, energy security, sustainable agriculture, and environmental protection. By acquiring a controlling interest in TTG, PHIL is in a prime position to capitalize on the Vietnamese conglomerate’s experience in providing renewable energy and reducing global emissions. With this in mind, TTG provides energy from renewable fuels to over 40 plants in Vietnam and across the world and holds 10 patents in addition to 10 industrial solutions that it intends to register for patents. Given the scale of such an acquisition, PHIL stock could be one to hold onto for the long-term as TTG adds major value to the company.
Upon the closing of this acquisition, PHIL and TTG will work together to lease TTG’s smart truck tires globally and develop cutting-edge agro-industrial projects to generate energy from sorghum crops. At the same time, both companies will utilize TTG’s proprietary technology to develop renewable energy projects from wastes and construct low-income housing using cleared waste landfills. Meanwhile, PHIL will assist TTG to access the US market and list the company on a major exchange. On that note, TTG will include the majority of its 40 plants under Philux Fidelity Global Group which will then be listed on the NASDAQ upon spinning-off from PHIL. As the company is working to build a NASDAQ conglomerate, PHIL stock could be one of the best OTC stocks to invest in for the long-term.
Given that PHIL intends to acquire its share in TTG for $60 million in cash, the company will be able to receive this cash from its recently signed JV with an investor in the Gulf Cooperation Council region. This JV will provide PHIL with $3 billion to invest in different transactions for 10 years. Meanwhile, this JV will provide PHIL with 40% of the investments’ net profit after the first 24 months. As these funds are unprecedented for an OTC company, PHIL stock could be a bargain at its current PPS – making it one to watch this year.
PHIL Stock Financials
According to its Q3 financials, PHIL has $5.2 million in assets – a significant increase from June 30 2021 where the company reported $927.7 thousand. PHIL also reduced its liabilities over the same period from $6.9 million to $6.2 million. As for revenues, PHIL reported $5000 from its consulting and management services and had $294.5 thousand in operating costs. Based on this, the company reported a net loss of $2 million which is an increase from its net loss of $691.4 thousand a year ago. Considering the potential of the company’s upcoming acquisitions of TTG and VPD, PHIL could realize record revenues in the coming years.
Media Sentiment
@MaryMichelleNay is bullish on PHIL stock’s long-term potential in light of its upcoming acquisitions.
@Arcstockstrader is excited over PHIL’s $3 billion JV with a GCC investor.
Technical Analysis
PHIL stock price is currently at $.002 with supports at .0018, .001, and .0005. The stock also shows resistances near .0022, .0032, and .0044. After sharing its agreements to acquire TTG and VPD, PHIL climbed more than 430% thanks to the potential these companies bring to the table for PHIL. With this in mind, PHIL stock could be poised to continue running in the near future as both acquisitions are expected to close next October. PHIL is currently trading past its VWAP resistance as the stock continues to gain interest from investors. If this breakthrough is successful, PHIL stock could break through $.0022 which the stock has not been able to break through lately. However, $.0018 appears to be a strong support so the stock could momentarily retest it – which could be a good entry point for bullish investors.
Accumulation dropped slightly following PHIL stock’s run due to investors taking profit but is starting to trend upwards again. Similarly, the MACD is bearish and appears to be approaching a crossover. PHIL is slightly oversold at the moment with the RSI at 68 which could indicate a retest of the support in the short-term. As for its share structure, PHIL has an OS of 32 billion and a float near 29.4 billion.
PHIL Stock Forecast
With the company looking to build a NASDAQ conglomerate, PHIL’s upcoming acquisitions of TTG and VPD could position the company for significant growth in the long-term. With these acquisitions set to close next October, PHIL stock could be well-positioned for a parabolic run as these acquisitions could set the company for financial growth. As the company intends to integrate TTG and VPD with its subsidiaries and list them on the NASDAQ, PHIL stock could be on track to uplist to the NASDAQ in the future. Considering the company’s JV with a GCC investor to manage $3 billion for 10 years, PHIL has the potential to witness significant growth in the future as 40% of the investments’ net profit over the first 24 months will be allocated to PHIL. In light of these catalysts, PHIL stock could be one of the most profitable holds in the OTC this year.
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