The $50k Challenge – Update 12

The $50k Challenge Update 12 – 06/07/2020

Stock Code: CDX

Shares Purchased: 480,000

Share Price: 0.025

Reasons for Buying:

  • Company looking to achieve cash flow break even by the end of 2020 based on strong uptrend in revenue.
  • Multiple new partnerships announced over the past 6 months to extend the reach of CDX in the telehealth sector.
  • The telehealth sector has experienced significant growth due to the Coronavirus pandemic. By all accounts, this trend will continue to grow over the coming years.
  • CDX signed a co-development agreement with Blumio as well as gaining a 7.5% holding of Blumio. Blumio is a company who is back by American Billionaire Peter Thiel.
  • Top 20 shareholder own 51% of the register.
  • The CEO is the number 1 shareholder owning 20% of the register. Total director holdings amount to 40% of the register.

Risks:

  • Company is using a combination of convertible notes as well as a financing agreement to fund its operations in the medium term. An equity raise is likely to happen in the medium term.
  • The multiple partnerships that they have are exciting but obviously there are no guarantees that they will succeed.

To find out more about how I analyse stocks that fit the criteria of the $50k Challenge  check out my Penny Stock Investing course.

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