Real Estate Investment Trust Dinatrum/Alumifuel Power (OTCMKTS: AFPW) is currently drawing the attention of the market due to many reasons. First of all, the management expects massive business growth in 2020 and 2021. With 2020 revenue guidance of $5-$11 million, AFPW’s expected sales growth is interesting. Besides, it appears to be negotiating various acquisitions at several attractive locations. With this in mind, believe it or not, AFPW trades with a market capitalization of $0.59 million and reports net tangible assets of -$8 million.
RECENT DEVELOPMENTS
The month of September was a busy time at the AFPW office. On September 26, 2019, the company reported that it expects to get the stop sign removed shown at the OTC Markets website. It is very valuable information. Once the sign is removed, a larger portion of the market may be willing to review the company’s financial models. As a result, demand for the stock could increase:
“We expect to remove Stop Sign no later than next week. We will continue to inform during the week via Social Media.” Source: Press Release
Besides, on September 27, 2019, the market got to know that the company may not invest only in Residential Real Estate. The company mentioned in a press release that growth sectors like Cannabis Health and High Tech Industry are of great interest:
“Cannabis Health is one of those industries. Targeting Real Estate that will warrant Rental Income is a priority. Liquidity is key, and it must be warranted, therefore management obligation is to locate business sectors that have higher liquidity is of great importance. High Tech Industry is also of great interest, but it happens that the Cannabis Industry has been the one that approached us.” Source: Dinatrum wrestles competition while pursuing acquisition of valuable Industrial Real Estate
With that, AFPW also reminded the market that apart from the company’s development in Pristine Beach south of Arizona, a Real Estate Acquisition Plan is expected for Q1 or Q2 of 2020. It appears very clear that AFPW’s these plans are behind the recent increase in the company’s stock volume:
Source: Bigcharts
The amount of announcements in October was also significant. However, the most remarkable was the revenue guidance provided as of October 14, 2019. AFPW is expecting 2020 sales from $5 million to $11 million and up to $13 million in 2021. Given that the company was at a pre-revenue stage in 2015, the expectations seem high:
“We have discussed the terms of the company’s financing, and the value of our shares in the stock market. We believe that Dinatrum could bring in revenue in a range between $5,000,000-$11,000,000 USD for 2020 and between $7,000,000-$13,000,000 USD in 2021.” Source: Dinatrum presents a valuation of Real Estate Ownership using Industry Parameters
Having said that, the most interesting announcement was released very recently. As of October 23, 2019, the company reported a letter of intent to acquire a block of 6.422 Acres in Atlanta, Georgia. We will have to stay tuned since AFPW expects to release a podcast interview soon. If valuable information is released, the market could react positively:
“The company has signed an LOI to acquire a block of 6.422 Acres in the outskirts of Atlanta, Georgia. In addition, the company is excited to be planning development of the site. Dinatrum will keep the public and shareholders informed as the project unfolds. The company will soon prepare a Podcast interview between the parties signing the LOI and will further announce that they will be developing the Seger Realty Project in the short future.” Source: Dinatrum announces signing of LOI with Seger Realty
BOTTOM LINE
Currently trading with less than $1 million, AFPW appears to be making almost all the right moves. Yes, with $8.2 million in total liabilities and negative net assets, the company needs to release its new financial statements. This is the next step to gain full transparency. After the transactions, the market should be interested in the company’s new financial situation.
Let’s follow this name carefully. The management could surprise again in November 2019.
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Disclosure: We hold no position in Alumifuel Power either long or short, and we have not been compensated for this article.
