Welcome to Greenbackers -Tracking the Fastest Growing Stocks under 5.
Alerting traders and investors on Sleepers about to awaken...Exposing companies with breakthrough / revolutionary technologies, and more.
Key Point:Merriman Capital, an investment bank which is 100% focused on the <$500 million microcap space, initiated a buy rating on NBT Equity Research sponsored research client SearchCore, Inc. last week (see disclosure below).
We also hold a short term 12-18 month value target of 30 cents per share on 3X multiple of sales-200% appreciation from here.
I think the analyst was very conservative with his valuation and notes, but my strong assumption is as SRER opens new stores and triples Q4 to >$800,000 in top line sales…he will get more comfortable with their transformation to high growth manufactured home retailer.
From Merriman:
"SearchCore has exited the finder site industry and is transitioning into a pure play retail provider within the manufactured homes industry. The company is directing all its efforts on building out Wisdom Homes Of America, a subsidiary focused on opening/acquiring manufactured home retail sales centers."
SRER reported a preliminary top line of $352,000, which was up from$50,000 in 2Q14 and largely in line with our $360,000 estimate. The improvement was primarily due to increased manufactured home sales out of the company's Tyler, Texas retail center. We believe management is working on bringing its other retail centers up to par with Tyler and expect at least one more location to contribute to sales in 4Q14 and 1H15, which should equate to a meaningful bump in revenues going forward. We anticipate the company will file its 10Q in November and will update our model and projections accordingly.
Our 30 cent price target is based a 3-times sales multiple to our FY15 revenue estimate of $6.2 million, which we then discounted by 30% to account for time value, adoption and execution risk. When we assign this figure to our FY15 diluted share count of 47.0 million, we arrive at our 30 cent PT. We are modeling geometric y-o-y growth and thus believe our 3x multiple is conservative as many companies that exhibit this type of top line growth trade between 5-10x sales.
Interesting how FNMA flew back after discussing pullback supprt setting in at 1.70 the last two wks.....Hope a few of you took advantag of that...
HJOE debate dips under flatline as it bases following recent runup over .01
MNGA landing another deal....Recall we covered the stock back in early Sept...Discussed ongoing supprt at 1 with constant popping to 1.30...Continues to display that pattern..
Subject: refining will be sending to newslettrs and analysts prior to opn NBT launching coverage on SRER. 0.07 Up 0.01(13.85%) 3:39PM Revenues expected to triple Extremely low float: 12mil
SearchCore focus stock as looks to triple revenues quarter by quarter
SRER nice little afternoon pickup on 5x volume increase following news and NBT Equities launching coverage.
SearchCore, Inc. (SRER)
-Other OTCWatchlist
0.070.01(13.85%)3:39PM
NBT Equities had some bullish commentary on them, in particular, growth tripling:
NBT. Com Complete transformation of company... (SRER) Looks to triple revenues quarter by quarter as they open new manufactured homes dealerships in the Shale Energy Belt of Texas OK LA and Ohio...
Huge demand supply imbalance for affordable <$130,000 single family housing near energy production regions... SRER is capitalizing on this demand with right product at the right price in the right locations...
$25k gross margin per sale.. Higher when land sale included... Which is fifty percent plus of deals these days
There are NOT single wide mobile homes... These are 1800-2200 Sq ft homes built to much better specs than stick built homes...
All the amenity bells and whistles... Family rooms, island kitchens with marble tops... 3 bedroom 2.5 bath on quarter to half acre lot...
SRER opening 30 retail centers over next 36 months... Truly a $100 million COMPANY in the making...
"This was a milestone quarter for the Company because it was our first quarter having our Tyler, Texas retail center fully operational. Inventory arrived in early August allowing us to close transactions and post sales in the second half of the quarter," Commented President of Wisdom Homes Of America, Mr. Brent Nelms.
"As our sales of manufactured homes increase, we are eager to receive our next shipment of inventory do to arrive in early November which will enable us to continue our growth in the coming months," commented CEO, Jim Pakulis.
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Technically the stock has seen a pickup from .05 in the last month...
What stands out on the financial stats is the extremely low float for a 7cent stock.....Suggesting the stock could run hard if momentum starts to build....
Float:
12.29M
Disclosure: Greenbackers does receive compensation from time to time from NBT Equities to assist in expanding awareness on Emerging Growth Companies experiencing extremely strong growth.
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Subject: Emerging Growth Stocks: Examining turnaround candidate MNGA on a string of deals / Expanding markets........One outsider as well as their CEO consider quite compelling.
MNGA seeing a string of bullish news in the last month.....Starting to line up deals with their breakthrough technology that Converts Manure Into Useable Fertilizer in addition to their patented process that converts liquid waste into a hydrogen-based fuel.
New MagneGas® 2 Fuel Enters Market with Favorable ResultsPR Newswire(Mon, Sep 22)....Several customers are now using the new product with recurring fuel orders and positive feedback has been received, leading the Company to expand its sales and production efforts.
....CEO Mr. Santilli discussed the MagneGas sterilization system for manure and the potential impact it could have on the industry. According to Purdue University, there are 73,150 pork farms in the United States. The U.S. is the 3rd largest producer of pork in the world. The Company believes this market could be a significant opportunity for growth...
Examining a potential turnaround with MNGA on news one outsider as well as their CEO consider quite compelling for the company, in that it will allow the company to greatly expand their market for MagneGas® 2.
The news involved a major acquisition that we alerted on at one of our blogs:
Noteworthy from the company PR: MagneGas Corporation, a technology company that counts among its inventions a patented process that converts liquid waste into a hydrogen-based fuel, announced today that it has signed aLetter of Intentto purchase an established industrial gas distribution company with estimated 2014 gross revenues of approximately $2 million.
"Signaling confidence with our new product MagneGas® 2, we now are entering the next phase of our expansion into the industrial gas market with the intent to purchase a local well-established gas distributor. This purchase would provide a springboard to introduce and sell MagneGas® 2 to a wider audience of customers around theTampa Bay area," stated Ermanno Santilli, CEO
Besides news in the last month (plus), also noticing a string of developments over the summer:
Regarding recent technicals MNGA is displaying ongoing support at a buck and a history of pickups to 1.30 in Sept as the deals pickup.
Longer term the chart is constant....Notice since runup last spring, the stock displaying constant ability to channel back to upper One's, while displaying ongoingsupportaround at a buck as well, suggesting favorable risk/reward appeal at current levels.
Examining Financial stats, what stands out the most is the company has no debt......In addition, trades at a very respectable 2.5 times book.
Balance Sheet
Total Cash (mrq):
6.44M
Total Cash Per Share (mrq):
0.19
Total Debt (mrq):
0.00
Total Debt/Equity (mrq):
N/A
Current Ratio (mrq):
16.43
Book Value Per Share (mrq):
0.44
source: Yahoo
Bottom Line: With their new, breakthrough MagneGas Sterilization system gaining market share, the recentmajor acquisition and mounting deals in Sept along with constant support near a buck, we find the stock attractive for accumulating at current levels. Debate as an intermediate term hold with a 1.30 target initially and 1.50+ into 2014.
Disclosure:
Greenbackersis not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. While the majority of our stock mentions are unbiased, Greenbackers may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about from time to time. Greenbackers was compensated from a third party to help expand awareness with MNGA.
