Good Morning Traders! Our primary order of business today is to provide a more detailed overview of SGSI, a stock that we have already mentioned, and had quite a bit of success with, in 2018. SGSI appeared in our premarket report back on April 25th, and we would subsequently observe a huge 135% run from a low of .005 to .0129.
The stock has since undergone a 1-for-200 reverse split (09/10/18), which resulted in an ultra-tight share structure with just over a million shares in the float as of October 18th (>>View Security Details). But before we get into the chart and the stock itself, we wanted to highlight the developments for the company which have us even more interested in SGSI this time around.
Spectrum Global, through its AW Solutions and ADEX Corp. subsidiaries provides telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and Caribbean. With the help of these businesses, Spectrum recorded a monster Third Quarter, receiving more than $5.7 million in new contract awards.
On the subject of increased business, CEO Roger Ponder had this to say: “We continue to see an increase in client orders, both here and in the Caribbean, for the pre-construction and construction services necessary to support future small cell densification, distributed antennas systems (DAS), fiber network expansions and 5G wireless technology projects … With these latest contract awards, we are now tracking well over $35 million in annual revenue and moving closer to profitability.” (Source: Globe Newswire)
The CEO also noted the expectation for even further increased demand for SGSI services due ongoing recovery efforts from an active 2018 hurricane season. The company also recently received a large credit facility which will enable it to more actively pursue these business opportunities.
It is indeed the show of rapid growth in 2018 that has us interested in Spectrum Global at the present time. Recently reported financial results for the period ended September 30, 2018 showed a 300% rise in revenues from the same period in 2017. It also nearly doubled its net income attributable to common shareholders, year-over-year, and reported Earnings Per Share of .04, on a fully diluted basis. (>>View Quarterly Results)
Overall, we see SGSI as a company on the rise, with all indications pointing to a continuation of this impressive recent growth. Now, for a closer look at the chart itself.
SGSI has consolidated in recent sessions, providing us with a potential buy-in opportunity as the RSI begins to indicate that the stock is oversold. We’ve seen two marked uptrends in as many months, and it appears as if SGSI is preparing for another leg-up. A theoretical return to highs established last month, would mean gains of over 300% from current pricing.
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