One of the most time-tested strategies in the markets is diversification. Hedging your bets minimizes risk and maximizes profit opportunities. Several technology-based penny stocks are using this strategy to great effect for investors.
Sparta Commercial Services, Inc. (OTCMKTS: SRCO) is a diversified company with interests in cryptocurrency, CBD and Wellness, e-commerce, website & mobile app development, and nationwide municipal lease financing solutions for essential equipment.
SRCO is using a business strategy investors know well, diversification.
SRCO is working this ‘diversification strategy’ and has placed its high reward bets, at this point the stock is positioned to benefit from these calculated investments.
Here’s why 2022 can be a banner year for the company.
1. Rising Revenues- in Q3 the company saw a boost in revenues. In the quarter ending January 31, 2022 the company’s revenue increased over the previous quarter.
2. Growing Margins- rising revenues are only impressive if the cost of revenue doesn’t grow at a faster rate. In SRCO’s case, not only is its revenue increasing, but its cost of revenue relative to the total sales has actually lowered, improving profit margins. For the first 9 months of fiscal 2022, its cost of revenue has actually decreased by ~40%, its operating expenses have also decreased by ~30%.
These numbers tell the story of a company making more money while spending less of it.
3. Less Risk, More Reward- The company’s expenses related to building its newest vertical, SpartaPay IQ – a crypto-payment solution, have been factored in and it is now set for launch. This means the price associated with the risk is factored into the share price, however, the potential reward is not.
There is an opportunity for arbitrage and new investors have a chance to own shares before the potential revenues from this latest vertical are factored in, not to mention ongoing revenue growth from its legacy businesses.
One passage in the filing really illuminates why SRCO looks like it is poised for rapid growth, “…We do not anticipate incurring significant research and development expenditures, and we do not anticipate the sale or acquisition of any significant property, plant or equipment, during the next twelve months. On January 31, 2022, we had 6 full-time employees. If we fully implement our business plan, we anticipate our employment base may increase during the next twelve months. As we continue to expand, we will incur additional costs for personnel. This potential increase in personnel is dependent upon our generating increased revenues…”
In other words, this says the only significant increase in expenses will be if the company needs to hire more employees to service the growing demand.
This is what I would call a ‘good problem.’
Learn more about SRCO here: http://fzm.fce.mywebsitetransfer.com/srcos-rapid-revenue-growth-and-why-investors-should-care/
Inpixon® (Nasdaq: INPX) is an “innovator of Indoor Intelligence®, delivering actionable insights for people, places and things.” The company’s Indoor Intelligence and mobile app solutions are leveraged by a multitude of industries to optimize operations, increase productivity, and enhance safety. Inpixon customers can take advantage of industry leading location awareness, RTLS, workplace and hybrid event solutions, analytics, sensor fusion, IIoT and the IoT to create exceptional experiences and to do good with indoor data.
Today, Inpixon® (Nasdaq: INPX), announced that its subsidiary, INTRANAV, joined SAP’s partner program as an SAP® PartnerEdge® – Build member. SAP is a market leader in enterprise application software. The SAP partner program allows INTRANAV to share its extensive intellectual property portfolio and to market its smart factory, smart warehouse, and digital supply chain solutions to SAP’s 440,000 customers worldwide. Program membership, among other benefits, allows Inpixon to offer its solutions through the SAP Store.
Borqs Technologies, Inc. (Nasdaq: BRQS), a global provider of 5G wireless solutions, Internet of Things (IoT) solutions, and innovative clean energy, with global operations in the U.S., India and China, announced that its subsidiary, Holu Hou Energy LLC’s (HHE) will play a major role in the Battery Bonus Program introduced by Hawaiian Electric Company.
Borqs Technologies (Nasdaq: BRQS) is a global leader in software and products for the IoT, providing customizable, differentiated and scalable Android-based smart connected devices and cloud service solutions. Borqs has achieved leadership and customer recognition as an innovative end-to-end IoT solutions provider leveraging its strategic chipset partner relationships as well as its broad software and IP portfolio. Borqs’ unique strengths include its Android and Android Wear Licenses which enabled the Company to develop a software IP library covering chipset software, Android enhancements, domain specific usage and system performance optimization, suitable for large and low volume customized products, and is also currently in development of 5G products for phones and hotspots. The Company acquired controlling shares of the aforementioned solar energy storage system entity, Holu Hou Energy LLC, in October 2021.
LightPath Technologies, Inc. (NASDAQ:LPTH), is a leading global, vertically integrated provider of optics, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries. LightPath designs and manufactures proprietary optical and infrared components including molded glass aspheric lenses and assemblies, custom molded glass freeform lenses, infrared lenses and thermal imaging assemblies, fused fiber collimators, and proprietary Black DiamondTM (“BD6”) chalcogenide-based glass lenses. LightPath also offers custom optical assemblies, including full engineering design support. The Company is headquartered in Orlando, Florida, with manufacturing and sales offices in Latvia and China.
LPTH recently presented at the LD Micro Invitational Investor conference, which was held on June 7th – 9th, 2022.
MIND Technology, Inc. (NASDAQ: MIND) provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in The Woodlands, Texas, MIND has a global presence with key operating locations in the United States, Singapore, Malaysia, and the United Kingdom. Its Seamap and Klein units, design, manufacture and sell specialized, high-performance, marine sonar and seismic equipment.
MIND recently announced its financial results for its fiscal 2023 first quarter ended April 30, 2022. Revenues from Marine Technology Products sales for the first quarter of fiscal 2023 were $9.1 million compared to $4.2 million in the first quarter of fiscal 2022. The Company reported a net loss from continuing operations for the first quarter of fiscal 2023 of approximately $2.8 million compared to a net loss of $3.7 million in the first quarter of fiscal 2022. First quarter of fiscal 2023 net loss from continuing operations attributable to common shareholders was $0.27 per share compared to a net loss of $0.31 per share in the first quarter of fiscal 2022. Adjusted EBITDA from continuing operations for the first quarter of fiscal 2023 was a loss of $1.9 million compared to a loss of $3.0 million in the first quarter of fiscal 2022. Adjusted EBITDA from continuing operations, which is a non-GAAP measure, is defined and reconciled to reported net loss from continuing operations and cash provided by operating activities in the accompanying financial tables. These are the most directly comparable financial measures calculated and presented in accordance with United States generally accepted accounting principles.
Start your research on SRCO here: http://fzm.fce.mywebsitetransfer.com/srcos-rapid-revenue-growth-and-why-investors-should-care/
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