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Discovering Extreme Value in Micro Caps with Star Alliance Corp. (STAL)

Despite a surge in price for the major US stock indexes, 2023 has remained a bear market for small and micro caps. Small caps are now trading at their lowest since 2001 when compared to the S&P 500 index. This scenario, however, has created extreme deep value investment opportunities for those willing to bet on a recovery of America's growth and innovation sectors. Star Alliance Corp. (STAL) is a diversified holdings company with business in gold mining, artificial intelligence, educational technology, and cryptocurrency payment platforms. STAL presents an extreme value opportunity at its current market cap of less than $1M while boasting $3.9 billion in gold reserves for their Troy Mine project.

Gold in Them Thar Hills!

Gold mining is the center point of STAL's operations and business model. Set to resume mining operations in Q1 2024, STAL is currently in the process of yielding new assay results for their Troy Mine project. The Troy Mine is projected to have $3.9 billion in gold reserves, presenting one of the strongest value cases in the entire micro cap space. There is a significant discrepancy between the value of the gold reserves and the company's current market cap; less than $1M market cap as of today.

Star Alliance Corp. has also invested in cutting edge gold mining technology called the Genesis System. Genesis extracts up to 98% of gold and other minerals from oxide and complex ores, without any emissions, in a close loop system, in 48 hours or less, a much shorter time period than other leaching methods. Genesis technology is already being licensed to two different South American mining projects.

Spearheading Innovations in Technology

As of this year, STAL has aggressively diversified its investments into breakthrough technologies including blockchain payments and artificial intelligence for the education sector. In September, the company purchased AIEnglishOTG, a company led by Mark Emerson, former VP of Pearson Education, the largest education company in the world. Mark developed and sold Ellis, Inc. to Pearson Education in the early 2000s, an early platform for learning English with computers. STAL will be rolling out their AI English education programs to 48 countries this quarter. This technology will assist in solving the global teacher shortage, an increasing concern since the COVID-19 pandemic. According to reports by the United Nations, the world needs 69 million more teachers to achieve universal basic education. With artificial intelligence driven education systems, this will reduce the need for additional teaching staff around the world.

In October, STAL also acquired 51% of NetSimple, a fintech platform branching into cryptocurrency and blockchain. NetSimple has been in business over ten years and has achieved over $700K in annual revenue and over $100K in profits. This acquisition further reflects Star Alliance Corp.'s commitment to diversification into technology and software. Furthermore, the shares issued to acquire NetSimple can not convert to common shares until STAL has a market price of 50 cents per share, reflecting significant upside from the stock's current price of less than a penny.

Keeping it Tight

While STAL has diluted their stock this year to finance its aggressive growth strategy, the company has kept their authorized share count at the low number of 500M shares, preserving their appealing share structure and common shareholder equity. As of today, the company can only dilute an additional 29M shares, if they choose to do so, before the authorized share count is maxed, leaving no additional possibility for dilution. This protects both traders and investors from a dilutive death spiral; something far too common in the OTC Markets.

Additionally, the company has kept its liabilities low; only $2M in liabilities. The company also capped its Regulation A offering at 75M shares. All their recent efforts reflect the company's strategy to raise money efficiently while not diluting the stock to any extremes. STAL's method of raising funds thus far has been uniquely efficient and effective compared to the large majority of micro caps.

Discovering Value

Considering STAL's bright future in technology and gold mining, as well as the value of the assets and investments in the company's portfolio, a market cap of less than $1 million is egregiously low. The value case here is strong; half a million dollars can buy the entire float, while the company boasts $3.9B in gold reserves and a profitable fintech platform. The agreed upon conversion price of 50 cents for their NetSimple acquisition provides further confirmation that management agrees the stock is currently significantly undervalued.

In their recent press releases, management reaffirmed "this is truly just the beginning" for their plans. The future looks bright for Star Alliance Corp.

The author of this article currently holds shares of STAL and may sell for profit at any time.

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1 Comment

Nov 14, 2023

Feedback on STAL and some of these stock and investment picks,

First of all I am an average Joe investor. A Firefighter, stepdad, and halfway decent athlete. I am not marketing or finance. I am not selling anything, not an advisor, pumper or trader. Just a guy that has invested 35 years and trying to find the next "early" 10 bagger stock to buy and hold 5+ years. I like pre-institution beaten down micros that are uncovered and below the radar because I feel they are about the only advantage a retail investor has over professionals.

Recently I decided to really look over, or listen, to many of these opinions/analysis/pitches in the latest newsletters, podcasts, periodicals, etc from…

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