Samuel Leach Identifies Logiq as a Growth Stock to Watch

By Ernest Hamilton

Dec 17, 2020 02:13 PM EST

Samuel Leach Identifies Logiq as a Growth Stock to Watch(Samuel Leach Identifies Logiq as a Growth Stock to Watch) (Credit: Getty Image)

Last month, entrepreneurial stock trader and investment mentor Samuel Leach hosted a virtual discussion with Logiq Inc's executive chairman Brent Suen to uncover the latest in the company's mobile-focused e-commerce stocks. As Logiq has piqued the interest of many investors, traders around the world tuned in to find out exactly why Samuel has pinpointed Logiq as such an up-and-coming player in today's e-commerce market.

Here are the main highlights from Samuel and Brent's discussion, which showcase why Samuel is keeping a firm eye on Logiq as a growth stock to watch.

What Makes Logiq Different?

During the discussion, Brent explained that Logiq develops e-commerce solutions to help small, offline businesses to sell their products and services online, much like its household-name competitors, Wix, Shopify, GoDaddy, and BigCommerce. However, these publicly traded, multi-billion-dollar corporations allow users to develop and optimize websites for laptop and desktop computer use. Meanwhile, Logiq assists companies in emerging markets that rely almost entirely on smartphones, especially in South East Asia, where around 80 percent of people don't have access to computers. Logiq helps companies in these emerging markets to build websites through their phones so that they can transition into the e-commerce space and increase their sales.

Logiq's Growth Strategy

Aside from South East Asia, Logiq is also in discussion with markets in Indonesia, Thailand, Vietnam, Nigeria, and some countries in the Middle East. Thanks to the huge reliance on smartphones in these areas, Logiq is well-positioned to rapidly expand its focus on mobile solutions and apps. As Logiq works to fulfill growing demand, Brent explains that the firm acquires 'tuck-in' companies that offer specific technologies, which Logiq can layer into its multi-product offering. This way, Logiq can continue to grow while differentiating itself from competitors.

Reduced Competition

Logiq faces little competition from Venture-capital-funded or publicly trading companies in its target countries. However, some local peers have gained impressive traction over recent months. For example, SEA (SE), a gaming, e-commerce, and payments company in Singapore has become the best-performing tech stock in the world. Brent explains that the company went public in the US in 2018, trading at around $8 per share. They're now trading at around $180 per share, trading with a $90 billion market cap. Rather than competing with SEA, Logiq partnered with the company in July to further validate its efforts in South East Asia, an ideal pairing as SEA focuses on e-commerce while Logiq focuses on e-commerce enablement.

Thanks to this partnership, Logiq's share value has increased over recent months, though the company is still only trading at about 2x revenue. Meanwhile, the company's peers are trading at anywhere from 25x revenue, and Shopify is trading at 56x revenue. Logiq is still far below the average in terms of valuation, making the company an ideal prospect for investments. 

Logiq's Partnerships and Acquisitions

Following its partnership with SEA, Logiq went on to immediately partner with a large Indian-based tech company - Tech Mahindra - which has a $6.2 billion market cap and trades on the Bombay stock exchange. In November, Logiq then partnered with the Social Security Administration in Indonesia, which provides Logiq with access to their 48 million members. This partnership has attracted much investor interest on the institutional side, which Logiq expects to translate to publicly trading focused institutions and retail investments in the future. 

Aside from its partnerships, Logiq acquires and onboards many small companies in logistics, e-commerce fulfillment, and consumer software spaces with a strong presence in local markets. Logiq is now trialing a more direct, digital approach to onboarding these companies which should lead to higher margins. 

Logiq's Exchange Listings

Aside from its listing on the OTCQX, the top tier of the three marketplaces for over-the-counter stock trading, Logiq recently announced that it will soon be listed on the NEO exchange in Canada, a tier-one, global exchange, comparable to the Toronto stock exchange. Logiq has opted for this exchange as Canada is the home of Shopify and other high-performance tech brands and therefore attracts a high level of investment interest. The listing will be led by an investment bank and will share the same hallmarks as an initial public offering (IPO). 

In early 2021, the NEO exchange will apply to the New York Stock Exchange (NYSE) to cross-list Logiq. Moving from one senior exchange to another should generate institutional and retail exposure on an international level, and Logiq hopes to see further interest from Canadian, US, English, and EU investors.

In short, there's lots of scope for Logiq's growth, which Samuel expects will be reflected in future share prices. You can watch the full interview on Instagram.

About Samuel Leach

Samuel Leach is the director of Samuel & Co. Trading, where his team of trading experts share the investment strategies that Samuel himself has used and honed to diversify trading portfolios. Since Samuel launched his company in 2012, Samuel & Co. Trading has grown to become an industry-leading currency trading firm, which has supported over 1,500 aspiring traders through Samuel's training programs. With Samuel & Co. Trading's assistance, new investors can learn how to reap impressive financial returns simply by implementing strategic trading strategies.

Samuel is also the CEO of Yield Coin, a social media influencer, TED speaker, and the author of The Formula for Success: How to Win at Life Using Your Own Personal Algorithm. Most recently, he has been voted as the number one Yahoo Finance Trader to Follow in 2020.

Learn more at www.samuelandcotrading.com.

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