Good morning, traders! We have a new pick to present this morning in the form of PTAH, a stock that has just recently entered bottom-bounce mode. Before we dive into the attractiveness of the chart, let’s take a few minutes to get ourselves acquianted with PTA Holdings, and probe a little deeper into their business activities.
As a holdings company, PTA has focal points in the automotive field. More specifically, the automotive lubricant field, as well as the logistics/transportation industry.
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The company owns ProFlow, Inc. by way of a 2007 acquisition, whose flagship product is ProFlow 2030 Motor Oil. ProFlow 2030 is an ISO 9001 certified, premium blend paraffin and synthetic oil with proprietary additives that significantly reduce engine part friction, resulting in reported fuel savings of up to 30%.
Another large selling point- ProwFlow claims that the flash point of ProFlow 2030 is double that of many top brand-name oils. The lower the flash point, the greater the tendency for the oil to incur vapor loss at high temperatures, essentially burning away on hot cylinder walls and pistons. Flash point has been known as an indicator of the quality of oil. The higher the flash point, the better the product.
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More recently, in 2012, PTAH acquired Kingsley Logistic Group, which is a multi-faceted transportation group which provides a range of traditional transportation services. These include truckloading, rail, warehousing & distribution, equipment leasing, and more.
Kingsley intends to take advantage of the transport industry’s current trend toward global logistics, distribution and supply chain management. In order to do so, it will be focusing on the acquisition of smaller-sized companies generating revenues from 2-20 million annually as part of its roll-up strategy.
According to market statistics, the trucking segment hauls roughly 68%, or 9 billion tons of all freight transported in the United States on a yearly basis. Trucking accounts for more than 86% of the nation’s freight bill, an industry with a purported value of well over $500 Billion. The company believes that “current inefficiencies in the supply chain sector create exceptional opportunities for Kingsley” in this arena.
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Another logistics company recently acquired by PTA Holdings is Nortford, LLC. PTAH had eluded to the potential acquisition in December, and in PR that hit the wires Monday, the company officially announced its entry into the food hauling business. Nortford is a logistics outfit which mainly serves the agriculture/food processing sectors, vis a vis the egg industry. According to the December report, Nortford has revenues in excess of $5M on its books.
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So it would seem that we are bringing PTAH to you at a good time. The company has been quite busy of late, and we expect that new developments are going to be coming our way more and more in coming months, but we are pretty excited about the short term potential as well.
The stock found its bottom at .0011, seeing that figure both on Monday, and yesterday. Earlier this year (01/03), the stock saw a bounce from these levels to .0037, (01/25), a gain of 236% Should the current level of support continue to hold, we could be getting ready to experience a similar bounce that would provide us with substantial gains.
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