Good Morning Traders! Today, in lieu of our routine premarket reports, we have a special focus report on SODE. Social Detention is an up-and-comer that certainly has some things to sort out, but despite that, still has so many bright spots to its recent storyline.
Part of that story begins earlier this year with the acquisition of its namesake property, socialdetention.com– a social media platform for members of the $200 Billion/year corrections industry, from decision makers, vendors, and suppliers, to the facilities themselves. The company did not use stock or create any debt in the acquisition, and plans to generate revenue by setting up a marketplace to complement and augment the social platform.
In addition to this new direction, SODE also has a security and infrastructure engineering, estimating, project management and professional services business. That segment of its operations has been thriving, having been awarded multiple contracts in 2018 which allowed it to post record revenues last month for Q1, and assure shareholders that Q2 is on pace to continue that pattern. (>>View PR)
Mr. Robert P. Legg II, CEO of SODE, stated, “We are pleased with our progress but are simply building a base and will not be satisfied until we are a much larger and more profitable company. We have come full circle winning projects, completing profitable project and gaining customer references. With the upcoming trends in the infrastructure and security market I see no limit to our growth as we focus on the bottom line and rewarding shareholders.” (Source: Globe Newswire)
MORE NEW CONTRACTS
Holding true to its word so far, SODE has announced this week that its ELLA subsidiary has been awarded several projects in California. The projects consist of building security and infrastructure repairs. Combined Contract value is over $900,000, with work beginning this month, and will go on the books for Q2. (>>View PR)
LATE BREAKING NEWSALAMO, CA, May 24, 2018 (GLOBE NEWSWIRE) — Social Detention Inc. (SODE), recently announced that it has executed an agreement with DME Inc. to procure, perform and share profits on California Contracts. This partnership allows Social Detention Inc. to participate on proposals that are reserved for specific companies with certain classifications. The agreement is effective May 21, 2018.
The profit share is 50/50 and recognized as contract revenues are received. We anticipate the revenue for the next twelve months under this agreement to be $2-5m with profit of $600k to $1.5m and $5m to $10m in Year 2 with profit of $1.5m to $3m. (>>Full PR)
____________
SODE CHART:
In terms of the chart, we want to point out that there a clear pattern of establishing higher lows over the past few months, and the stock has also shown that it’s more than capable of making significant swings in a short amount of time.
It is this volatility that gives us hope for the SODE chart; the stock has made three significant moves in as many months. In March it ran from .0311-.1239 (+298%), then in April it ran from .035-.17 (+386%), and finally this month it made a move from .0711-.14 (+97%).
____________
When all is said and done, SODE may have some cleaning up to do in terms of its share structure and current spread, but it is generating revenue while making good headway with its new projects, and has more than enough going on to pique our interest.
Not for nothing, but the company has also previously expressed interest in exploring opportunities in the cannabis sector as well. For all these reasons, we’re going to be watching SODE closely from here on out.
_________For more info on SODE visit www.sodetention.com