Featured
A2Z Smart Technologies (NASDAQ: AZ): Unveiling the Future of Shopping & Global Expansion
Published
1 month agoon

A2Z Smart Technologies (NASDAQ: AZ), a prominent player in the realm of cutting-edge technology solutions, has garnered the attention of investors with surges peaking ~130% earlier this year. Intrigued by their recent developments, we decided to delve into the company’s core offerings.
They’ve had a number of noteworthy announcements scaling their smart technology globally, with yet another announcement this morning. One of Israel’s leading home design and household chains has now doubled their initial order. With 40 stores across the country, this is no small feat. Nonetheless in comparison to other announcements, this is but a small piece of the puzzle.
Let’s delve into their technology, explore their latest advancements, and assess analyst ratings to uncover the potential future prospects for this innovative tech company.
Background:
A2Z has introduced an intriguing technology called Cust2Mate that transforms traditional shopping carts into a smart cart platform solution. Their goal is to deliver an enhanced customer experience driven by data and to offer a cutting-edge platform for digital value-added services and retail media. Their aim is to solve 4 pain points in retail:
- Increase revenue & profit
- Improve customer satisfaction & loyalty
- Reduce shrinkage
- Enhance in-store operational efficiencies
Application:
Their cart has the potential to revolutionize the shopping experience in several tangible ways, one in particular we find very interesting. Their technology allows customers to enjoy a seamless shopping journey, giving them the ability to process payments directly on the cart and simply go, effectively eliminating the need for long checkout queues and the self-checkout hassle.
To illustrate, let’s consider a retail giant like Costco. It’s no secret that this discount grocer is often plagued by notoriously lengthy lines that can take more time to navigate than the actual shopping itself. Now, just think about what securing a contract with a retail giant like Costco would mean for the company, that alone would be groundbreaking, and that’s just one of the many benefits this technology brings to the table.
Another tangible example:
The technology also unlocks a realm of personalization through a plethora of promotions, coupons, and deals. These smart carts are designed to track shoppers’ purchase history and deliver real-time, personalized offers and recommendations based on their in-store location. The result is a shopping experience tailored to individual preferences, offering a level of satisfaction that’s hard to match.
Traditionally, shoppers are made aware of discounts through physical coupons sent in the mail or by stumbling upon a product randomly marked down on the shelf. Now, imagine the convenience of having all these tailored deals right in front of you, driven by your unique shopping history. Such a system could also capture a wealth of data that can help retailers gain deep insights into customer behavior, including product preferences and shopping patterns. It’s a game-changer in terms of understanding and serving the needs of the customer.
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New CEO & Latest Developments:
In recent months, A2Z has undergone a transformative journey. With each passing day, the path ahead becomes clearer, particularly after the appointment of a new CEO, Guy Mordoch in March of 2023. Since this pivotal change, the company has steadily gathered momentum, securing several noteworthy victories in Israel. The latest news this week has undoubtedly expanded the horizon, making the future appear even more promising and bright. But before we cover the release, let’s review Mordoch’s background.
The arrival of the new CEO has significantly altered the perspective of industry observers when compared to his predecessor, Rafi Yam. While Rafi was a well-regarded figure within the industry, known for his pursuit of an aggressive expansion strategy, Guy brings a different background into the equation. With experience in both public and private companies, Guy’s forte lies in building teams for more established operations. This has led analysts to believe that a major success may be just around the corner under his leadership.
One key aspect of Guy’s strategy appears to be utilizing the Israeli market as a showcase and a funding hub for global operations. This is evident in the surge of orders from Yochanonof, the initial order from HaStok in May, and another order from HaStok today that doubled their amount of carts. Anticipation is running high for further wins and additional orders from Israel, signifying a promising trajectory for the company.
Agreements in Europe & Asia:
Outside of Israel, AZ is also making significant strides in expanding its smart shopping cart business globally. The company has recently entered into two groundbreaking agreements that promise to revolutionize the retail landscape.
In a landmark agreement, A2Z partnered with IR2S, a renowned integrator of advanced retail technologies in France, to deploy 30,000 smart carts across esteemed retail chains in France between 2023 and 2026. IR2S, already providing integration and services to prestigious retailers like Monoprix and the Casino Group, will take charge of the integration, installation, support, and maintenance of Cust2Mate’s smart carts. The first delivery of these smart carts is expected within 45 days at Monoprix’s Monop Malakoff store near the Champs-Élysées in Paris.
In another pivotal move, A2Z has also forged an agreement with HEX 1011, a leading integrator of technological solutions for retail chains, to deploy 20,000 smart carts across the Asia Pacific (APAC) region from 2023 through 2025. The first delivery of these smart carts is scheduled for November, and HEX 1011 will oversee their efficient rollout and maintenance for elite retail chains in Thailand and Malaysia.
These agreements mark a significant leap in A2Z’s journey to reshape the retail landscape, delivering enhanced shopping experiences to consumers and increased efficiency for retailers on a global scale.
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Deal With Carrefour France:
On October 25th, 2023 the company announced its selection to supply smart shopping carts for Carrefour’s Connected Cart project, a significant venture within Carrefour’s newly merged Hypermarket and Supermarket division in France. The initial phase involves the delivery of 2,000 smart shopping carts, specifically designed to meet Carrefour’s requirements, with an expected delivery in the first half of 2024 at two Carrefour hypermarket locations in France.
Carrefour, the seventh largest global grocery retailer by revenue, operates 13,650 retail locations worldwide, encompassing hypermarkets, supermarkets, convenience stores, cash and carry outlets, and soft discount stores. Their Hypermarket and Supermarket division in France, consisting of approximately 1,300 stores equipped with around 600,000 carts, boasts aggregate sales exceeding €30 billion.
Guy Mordoch, CEO of Cust2Mate, expressed enthusiasm over this partnership, highlighting their commitment to delivering excellence and growing their collaboration with Carrefour in the Hypermarket and Supermarket division rollout. As a leading provider of smart cart solutions, A2Z is well-positioned to meet Carrefour’s unique specifications with their Gen3 smart shopping carts.
Analyst Ratings:
Before we wrap up, it’s worth mentioning that A2Z has garnered attention from seven analysts, and you can find some of their coverage on the company’s website for further insight. What’s particularly noteworthy is that the price targets set by these analysts significantly surpass the current trading value, with an average price target of $13.98. The highest price target was set at $18.00 on June 9th, 2023. This would represent an exponential upside of approximately ~1100% from the current stock price of $1.48. Not to mention, a number of high value milestones have already occurred since this coverage.
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What’s next:
As detailed on AZ’s website, here’s what lies ahead:
- Continued investment in research and development to introduce additional features and functions, enhancing the personalized shopping experience and fostering greater customer engagement.
- The pursuit of strategic partnerships with retailers, both at the regional and international levels, with the aim of broadening their customer base and extending their market presence.
- The utilization of advanced technologies, such as big data, artificial intelligence, and machine learning, to equip retailers with profound insights into customer behavior and preferences. This will empower retailers to make data-driven decisions, ultimately elevating their overall business performance.
Conclusion:
It’s evident that A2Z is at a pivotal juncture, having successfully integrated its solution with major global retailers. While it has gained increased traction online, there hasn’t been a corresponding significant change in its market valuation. This could be attributed to the fact that the full potential of its revenue has yet to be realized.
Considering the prevailing market conditions, it’s likely that investors are currently inclined towards more established and secure investment options with robust fundamentals. A2Z, on the other hand, is positioned in a high-growth stage, which can impact its bottom line. However, moments like these present a compelling opportunity to be part of a disruptive technology that is clearly innovating within a space that’s witnessed minimal change in decades.
We will update you on AZ when more details emerge, subscribe to Microcapdaily to follow along!
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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.
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Featured
BlockQuarry Corp’s (OTC: BLQC) Exponential Growth: Understanding the Phenomenon
Published
2 hours agoon
December 4, 2023
BlockQuarry Corp. (OTC: BLQC) has seen an astonishing surge, with its shares soaring by almost 950% within just a month, rising from November’s lows of $0.016 per share to a high of $0.166 on December 1st, 2023. This exceptional growth has garnered attention within the retail community due to its substantial returns. Amidst this upward trend, the company issued three press releases, complemented by several OTCM filings detailing the company’s quarterly and annual financial reports. Today, an analysis of these releases, filings, and broader market trends will shed light on BLQC’s recent remarkable valuation increase.
Background:
The primary source for comprehensive information about BLQC lies within their website, offering more specific insights compared to their press release ‘about’ sections. Their focus primarily revolves around providing all-in-one eco-friendly crypto mining solutions. This entails offering hosting, mining, energy, expertise, and infrastructure necessary for complete turn-key cryptocurrency mining operations.
BLQC employs a dual cryptocurrency revenue strategy, capitalizing on both mining and hosting income streams. While revenue from internal mining activities fluctuates with specific cryptocurrency prices, their hosting services generate income independently of crypto pricing. This balanced approach ensures steady cash flow growth from operations, regardless of Bitcoin or other cryptocurrency prices.
Although BTC stands as their primary mining target, BLQC appears open to exploring new opportunities in Crypto assets and Blockchain technology. Their Crypto mining operations currently rely on leased renewable energy power generation facilities located in Gaffney, SC, Rutherford, NC, and Mooreshead, NC.
Until March of 2022, the Company also offered management services include managing day-to-day billing and vendor activity for a health care business. Those operations are now classified as discontinued operations.
Market Dynamic:
Bitcoin (BTC) recently soared to a 2023 high, hitting $41,522 due to favorable regulatory shifts and an optimistic market atmosphere. Both the Momentum (10) at 3735.76 and the MACD Level at 1283.69 signal a ‘Buy’ for BTC, indicating potential positive trends ahead. Analysts are hopeful about BTC’s future, buoyed by retail investors’ optimism and the possible approval of a Bitcoin Exchange-Traded Fund.
As for crypto miner BLQC, these currency price surges significantly impact their mining profitability. Given BTC’s 150% surge, BLQC anticipates higher margins in their mining operations. The fluctuation of other currencies like ETH, SOL, and XRP, have also seen substantial gains recently. Suggesting bullish trends and contributing to an overall positive outlook for Cryptocurrency.
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OTCM Filings:
At the core of OTC companies lie their filings. These essential documents demand careful attention and thorough examination to gain a comprehensive understanding of their current status. Often, these OTC companies lack significant press releases or comprehensive websites, compelling investors to delve into their filings. These filings offer in-depth and accurate insights into their performance and fundamental well-being, serving as a crucial resource for investors seeking a clearer picture.
As for BLQC, they have OTCM filings which are less extensive than SEC filings, but are designed to provide investors with some basic financial information. Some OTC companies voluntarily register with the SEC to provide additional transparency and credibility to investors – BLQC does not appear to have done so.
2022 Annual Report:
Upon a preliminary review, the audited annual report for 2022 indicates potential weaknesses in its fundamental health. However, this does not preclude the possibility of the stock gaining momentum. Nevertheless, here are basic key numerical highlights from their Annual Report from 2022:
- Total Assets USD $5,436,686 vs. USD $10,796,530 December 31, 2021
- Total Liabilities USD $15,273,941 vs. USD $16,066,782 December 31, 2021
- Total Revenue USD $5,330,133 vs. USD $959,677 December 31, 2021
- Net Income Loss USD $(15,426,817) vs. Net Income of USD $3,546,376 December 31, 2021
2023 Financials:
Our initial evaluation, which includes unaudited quarterly results along with highlights from the 9 months ending on September 30th, 2023, indicates potential weaknesses in the company’s fundamental health. However their bottom line at least saw improvement. Here’s a concise overview of the figures:
- Total Assets: USD $2,944,195 compared to USD $5,436,686 as of December 31, 2022
- Total Liabilities: USD $10,343,408 compared to USD $15,273,941 as of December 31, 2022
- Total Revenue for the 9 months ending September 30th, 2023 USD $922,192 compared to USD $3,676,160 for the same period in 2022
- Net Income Loss for the 9 months ending September 30th, 2023 (USD $4,110,673) compared to (USD $8,398,772) for the same period in 2022
BLQC is currently experiencing a high growth phase, it’s not surprising to witness its fundamental financial health in a challenging situation, especially given the significant changes BLQC has been through since 2022.
There are undoubtedly several other factors that could potentially contribute to the company’s positive momentum. Let’s proceed with the evaluation of another OTCM filing.
OTCQB Certification:
BLQC put out an OTCQB certification filing. This filing essentially applies for and fulfills the necessary requirements to be listed on the OTCQB market tier.
Being listed on the OTCQB can offer benefits such as increased visibility, more stringent reporting standards, better access to investors, and potentially improved liquidity. It’s seen as a more regulated and credible marketplace compared to the Pink tier, which often provides investors with increased confidence in the company’s operations and financial reporting.
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Press Releases:
Considering the substantial recent gain, let’s examine the last three press releases, disseminated within’ the last month to evaluate their potential connection to the recent surge.
Regains Possession of Gaffney Mining Assets:
BLQC recently reached a settlement agreement for the case of Blockquarry Corp v. Litchain Corp, marking a significant victory for the company. Reclaiming essential mining assets in South Carolina allows BLQC to regain control over crucial equipment necessary for their operations. President and Chair Alozno Pierce’s positive outlook and the outlined plans for debt consolidation and asset management signify a strategic move toward enhancing the company’s financial stability and operational efficiency. Their focus on relocating assets to a new site in Missouri and plans to reduce dilutive debt with settlement proceeds position BLQC for operational expansion and stronger financial footing. Pierce’s commitment to providing further updates indicates transparency and a forward-looking approach, signaling good prospects for BLQC’s future growth and success.
New Management:
BLQC is looking to propel operational growth and appointed Lawrence Davis as Chief Operating Officer (COO) and Sam Escobar as Director of Ground Operations, reinforcing its commitment to advancing in the Energy and Infrastructure sector. Davis, a military veteran and entrepreneur, brings substantial experience in executive consulting, security, and digital assets. More recently Davis entrepreneurial journey led to the founding and establishment of a digital assets fund, Wandering King Studios, a software company specializing in Web 3 product offerings and digital assets.
Escobar, also a decorated veteran, excels in executive consulting and blockchain technology, showcasing expertise in operational scaling. Pierce expresses confidence in Escobar’s alignment with BlockQuarry’s vision for growth. Notably, Escobar’s contributions have been instrumental in establishing and scaling multiple companies, showcasing his operational prowess in growing profitable entities. His expertise extends to blockchain technology and digital asset management, as founder of a software protocol that is currently being used in gaming and augmented reality training and as an active board member of a well-established digital assets CPO fund.
With their leadership, BlockQuarry aims for innovative and successful operations in the public markets.
Revenue Growth:
BLQC updates on the success of its new Missouri site under COO Lawrence Davis and Chairman Alonzo Pierce. Since becoming COO, Davis has focused on innovation and growth, overseeing the launch of BlockQuarry’s self-mining site in Macon, Missouri.
Pierce commended the swift site transition post-Gaffney court ruling, highlighting confidence in Davis’s leadership. The Macon site’s current operations feature two pods, projecting an annual revenue of approximately $1.4 million – $1.7 million. BlockQuarry plans to scale up to four pods by year-end, with the site designed for immediate scalability, targeting 9 MW of operational power and an annual revenue of $3 million – $3.4 million.
Davis noted the site’s importance in accelerating BlockQuarry’s growth and showcasing expertise to prospective clients and public markets. The Company pledges continuous updates on its Missouri operations, revenue projections, and additional projects, reinforcing its commitment to enhancing operations and value for shareholders.
Conclusion:
BLQC has taken substantial strides forward by closing the chapter with Litchain Corp, enabling operational efficiencies. With the addition of strong operational executives, there’s potential for enhanced financial performance. Despite recent financials not depicting optimal health, other releases suggest positive progress. The surge in BTC has provided a favorable environment for crypto miners, including BLQC, potentially leading to improved financial performance due to higher margins. While it might still be early, the latest investor optimism, potential OTC tier upgrade, bolstered management team, and advancements at the Missouri Site indicate a promising trajectory for BLQC. Keep an eye on them by adding them to your watch list.
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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.
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BioPharma
Brainstorm Cell Therapeutics’ (NASDAQ: BCLI) Post-Setback Resurgence: Unpacking FDA Impact & Market Expectations
Published
4 days agoon
November 30, 2023
Brainstorm Cell Therapeutics (NASDAQ: BCLI) continues to gain momentum with a surge of over 125% since its low on October 31st, 2023. Following an unfavourable FDA decision on its ALS treatment, the stock hit an all-time low of $0.13 per share. Nethertheless, the stock experienced a significant rebound today, November 30th, 2023, rising by 26%, without accompanying press releases or SEC filings.
This resurgence prompts us to evaluate the possibilities for yet another company struggling to meet NASDAQ’s minimum bid requirements. A closer examination of recent months reveals intriguing developments that might pique the interest of potential investors. Our findings suggest BCLI holds promising near term prospects that could significantly alter its course.
Background:
BCLI specializes in developing therapies that utilize a patient’s own stem cells to combat severe neurodegenerative ailments like Amyotrophic Lateral Sclerosis (ALS) and progressive Multiple Sclerosis (MS). ALS affects nerve cells in the brain and spinal cord, while MS affects the central nervous system, causing problems with vision, balance, and muscle control.
The company holds exclusive global rights for the clinical advancement and commercialization of the NurOwn® technology platform, enabling the production of autologous MSC-NTF cells. These cells have received significant recognition and were awarded Orphan Drug designation by both the FDA and the European Medicines Agency (EMA).
Autologous MSC-NTF cells:
The way Autologous MSC-NTF cells work is very interesting. They’re a specific cell type obtained from an individual’s mesenchymal stem cells (MSCs). These cells are then genetically altered to produce neurotrophic factors (NTFs), which are designed to support and stimulate the growth and survival of nerve cells within the nervous system.
BrainStorm has conducted a Phase 3 clinical trial (NCT03280056) investigating the safety and effectiveness of multiple doses of autologous MSC-NTF cells for ALS. This trial received support from the California Institute for Regenerative Medicine, the ALS Association, and I AM ALS. Additionally, the company completed a Phase 2 open-label multicenter trial (NCT03799718) for progressive MS using these cells, backed by a grant from the National MS Society (NMSS).
Back to Square One:
Unfortunately for BCLI, 17 FDA advisory panel members voted that the data presented for their Phase 3 clinical trial for ALS did not demonstrate substantial evidence of the effectiveness of NurOwn for the treatment of mild-to-moderate ALS. There was simply only one member who voted in favour and another member that abstained from voting entirely.
Predictably, this resulted in a substantial downturn in the company’s share price, causing BCLI to plummet 87% below NASDAQ’s minimum bid compliance threshold of $1.00.
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Is it Over?:
To those not well-versed in this matter, it might appear as if BCLI is forced to throw in the towel and start everything from scratch, but the reality is actually quite different.
When a drug fails in clinical trials, the pharmaceutical company or researchers typically reassess the data to understand why the drug failed.
They might conduct further analysis to determine if there were unforeseen side effects, issues with the study design, or if the drug simply didn’t show the desired effectiveness. They’ll work to make adjustments, refine the drug’s formulation, or in some cases, explore other alternatives by re-designing new clinical trials to evaluate the drug’s safety & efficacy for a different condition.
If none of those efforts yield a positive outcome, it’s typical to halt further development of that specific drug.
Regardless of the FDA’s decision, Co-CEO Lindborg mentioned, “We firmly believe that the data for NurOwn presented today provide a compelling case for approval, with clinical evidence in those with less advanced disease supported by strong and consistent biomarker data that are predictive of clinical response,”
Unfortunately for Lindborg, the decision does not rest with her. A panelist from the FDA, Lisa Lee, expressed, “Providing false hope can be ethically problematic and false hope is provided when the probability of a positive outcome is overestimated. And I think that seems to be the case here.”
After the devastating press release on September 27th, 2023, most of the retail crowd was on board with the FDA, mentioning it was time for BCLI to pack up, and go home – especially after seeing these comments from the FDA.
What Happened:
Amid FDA skepticism and investor uncertainties, BCLI took decisive action, securing a chance for a new phase 3 trial to showcase the effectiveness and safety of their NurOwn® technology for ALS treatment.
On October 24th, 2023, BCLI issued a press release affirming their conviction in the compelling data and expressing their intent to further substantiate it to the FDA.
More specifically, this was a “Strategic realignment” designed to:
- Support the company plans to conduct a double-blind, placebo-controlled Phase 3b U.S. clinical trial for NurOwn in ALS with an open-label extension and
- Continue to publish data from NurOwn’s Phase 3 clinical trial on biomarkers, long-term safety, survival, and the Expanded Access Program, providing transparency around NurOwn data and progressing ALS drug development.
Big Release:
Then on November 20th, 2023, BCLI issued another press release, stating that the FDA granted them an in person meeting to discuss the regulatory path forward for NurOwn® in ALS.
Within’ the last month or so, it appears the market is HIGHLY anticipating the outcome of this meeting, given it is now scheduled to take place on December 6, 2023.
This meeting allows BCLI to have a Special Protocol Assessment (SPA) with the FDA to agree on the overall protocol design for a confirmatory Phase 3 trial in ALS.
If you aren’t familiar with a SPA, it’s an agreement between a pharmaceutical company and the FDA regarding the design, endpoints, and size of a clinical trial intended to support a New Drug Application (NDA) or Biologics License Application (BLA). This agreement aims to confirm that the trial design, data analysis, and endpoints are acceptable to the FDA for the regulatory approval process.
A favorable result from this meeting could greatly benefit BCLI, paving the way for the actual launch of NurOwn®. This outcome stands in stark contrast to the prior belief, post the September 27th, 2023 news, which led many to assume otherwise.
If the trend remains positive, BCLI could see a significant surge in valuation, given the substantially reduced risk associated with a drug nearing commercial availability.
Conclusion:
Boosting the optimism for December 6th is the heightened enthusiasm among retail investors surrounding the company. Some speculate that the surge might mirror what SNGX experienced today, on November 20th, 2023. With technical day traders and swing traders in the mix, many perceive this as the final opportunity to join the trend before it gains further momentum. It’s crucial to remain vigilant as December 6 approaches rapidly, potentially ushering BCLI into an entirely altered and positive scenario.
We will update you on BCLI when more details emerge, subscribe to Microcapdaily to follow along!
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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.
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Energy & Resources
iSun, Inc (NASDAQ: ISUN) on the Rise: Recent Market Growth & Remarkable Momentum
Published
5 days agoon
November 29, 2023
iSun, Inc (NASDAQ: ISUN) has experienced a significant surge of over 88% since November 22nd, 2023, with 12% of that increase observed within the current trading day. Similar to other Nasdaq-listed companies facing minimum bid requirement challenges, iSun has witnessed this remarkable upswing without any corresponding press releases or SEC filings to justify the sudden uptick. Looking further, we aim to uncover the underlying factors propelling this sudden rise by examining the company’s recent material events and financial performance, providing a comprehensive evaluation of what the future might hold for ISUN.
Background:
ISUN’s been in business since 1972, so quite a long while. After 47 years of being private, they decided to go public in June, 2019 and were previously known as The Peck Company.
Following the acquisition of ISUN, the company underwent a name change, becoming the entity known today. They have since taken the lead in integrating influential electrification technologies.
With a longstanding reputation as a reliable service partner for Fortune 500 firms, ISUN has a track record of installing various technologies, including clean rooms, fiber optic cables, flight simulators, and over 600 megawatts of solar systems.
The company offers an extensive array of solar services covering residential, commercial, industrial & municipal, as well as utility-scale projects.
Highlighting the importance of shifting towards clean, renewable solar energy, it’s worth noting that ISUN is committed to seizing profitable growth opportunities by offering solar electric vehicle charging solutions for both grid-tied and battery-backed systems.
Latest Earnings:
Unlike the last few write ups, we’re fortunate to have access to more informative press releases and SEC filings for ISUN. That said, let’s talk about their latest earnings and how the business is currently performing.
Highlights by numbers:
- Q3 2023 revenue of $27.9 million, up 47% from Q322, as continued strong commercial and industrial execution drives growth
- YTD revenue of $70.3 million, up 39% over first nine months of 2022
- Gross profit of $5.4 million, up 50% from Q322
- Gross margin of 19.45%, up 45 basis points from 19.0% in 2022’s third quarter, as benefits from synergies were offset by mix
- Awarded $27.0 million in new solar and EV infrastructure contracts in Q3 2023, with a total of $67.0 million in first nine months of 2023
- Continuing successful execution of growth strategy, leveraging tailwinds
Okay great, both the revenue and profit margins are moving in a positive direction. In this market, let’s be honest, what truly matters is whether this long-standing company can generate profits while tackling the substantial growth potential in renewable solar energy projects.
There’s a few things worth noting from this release, the bigger point being the heavy tailwinds pushing them into record growth this year. Their commercial and industrial division showed impressive growth, achieving a 47% revenue boost and a 45 basis point increase in margins compared to the previous year. Despite challenges due to higher interest rates for residential customers, the team remains focused on seizing opportunities driven by climate policies and growing interest among customers in alternative energy solutions.
On another front, their operating loss in Q323 was ($1.8) million, a $3 million or 64% improvement compared to a loss of ($4.9) million in Q322. The cause for this? Higher revenue and lower operating expenses.
To be frank, the majority of CEOs across various industries anticipate higher productivity with fewer resources, which can be a continual source of high stress for employees actually accomplishing the daunting dask. Nethertheless, ISUN is achieving record growth with ease…
As a final thought on operating income, their YTD loss was ($6.2) million, a $10 million or 62% reduction compared to a loss of ($16.2) million during the same period in 2022.
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Thoughts from the CEO:
“We continue to make substantial progress towards the targets we set for iSun’s performance this year, as we execute on our strategy and fulfill our commitments to investors. We remain confident that our expanded capabilities effectively address the needs of more customers and position us to accelerate our growth in the evolving alternative energy sector. Our continued success in winning significant contracts with existing and new customers reflects the appeal of our platform approach that delivers a suite of services to meet the needs of diverse customers. This year, we are also benefiting from the expertise of our team in executing efficiently on our backlog to address our customers’ needs and leveraging the relationships and partnerships we have established. Now that our country’s energy policy has been established for the next 10 years through the IRA legislation passed in 2022, we expect those factors to help us scale our operations significantly in the next few years, no matter what macroeconomic challenges may persist, and thus enable us to generate steadily higher revenue and reach operating profitability in the years ahead.”
Thoughts from Retail:
Several types of traders on Twitter are actively discussing ISUN, many with tens of thousands of followers. One in particular with a 72.1K following on Twitter, @MoonMarket_, mentions he’s accumulating for potentially larger moves ahead, based on technical trends.
@greatstockpicks and @FrankieBstock, with a combined following of 58.4K, are also actively discussing ISUN. Their sentiments lean positively, indicating that the deeper they dive into the company, the more appealing it appears.
Frankie also highlights, “Wainwright has a .50 target…given the revenue, growth, low offering risk and 161m backlog I could see it going higher but let’s focus on .50 with a stop loss around .12”.
It’s certainly encouraging to witness higher attention from influential sources discussing a stock, but it’s always crucial to conduct your own research and form an independent judgment.
Ultimately, all we can do is hope for the best regarding anyone’s analysis, even reputable analysts. While they are probably more reliable than figures like Cramer, who is often criticized for his inaccuracies concerning small-cap stocks, it’s essential not to take opinions as absolute truths.
Analyst Coverage:
As mentioned, analysts might not always be the most accurate to follow, but it’s usually reassuring when individuals with robust financial backgrounds, widespread industry connections, and expertise provide their insights on a public company.
ISUN is presently under analysis by three different firms: Alliance Global, Roth Capital Partner, and H.C. Wainwright & Co. They have set varying buy recommendations and price targets for the company, with a low, median, and high range of $0.50, $2.00, and $2.75, respectively. That’s a monumental 127.4%, 809.9%, and 1151.1% increase should ISUN meet those expectations.
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What’s Next:
ISUN seems to primarily focus its market updates on financial aspects. Upon reviewing all their 2023 releases, they consistently highlight robust execution and growth, reinforcing the anticipation of total revenue reaching $95-100 million this year, indicating a 24-31% surge compared to 2022.
As mentioned earlier, ISUN currently operates at a loss, and often experiences fluctuating quarters due to the impact of high-value contracts. These contracts can significantly influence the company’s financial results.
Thankfully, ISUN holds a total backlog of $161.8 million as of September 30, 2023, ensuring a stable revenue stream as projects are finalized. The bulk of this backlog, approximately $140.3 million, pertains to commercial and industrial applications, projected to be finished within a span of 10-18 months.
As is common with non-profitable businesses, it’s crucial to stay watchful for potential near-term dilution. Fortunately, ISUN recently secured term sheets for a non-dilutive $8 term loan, providing a reassuring stance for the time being. Should the management maintain this level of execution, achieving profitability may not be far off and would be a substantial milestone.
Regarding Nasdaq’s minimum bid requirement of $1.00, ISUN received an extension until May 2024, aiming to facilitate an organic increase in their stock price without the risk of a reverse split.
Conclusion:
With a long-standing history and a shift towards electrification technologies, ISUN’s dedication to renewable solar energy and diverse services positions it for substantial growth.
The overarching market trend aligns favourably, offering support to their endeavours, while the management team’s restructuring on cost efficiencies bode well for near term profitability. Their recent earnings demonstrated substantial revenue growth, particularly in their commercial and industrial segments where they’ve overcome significant market challenges.
In the realm of undervalued micro-cap stocks listed on the NASDAQ, ISUN emerges as a compelling candidate worth monitoring closely.
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Picture by andreas160578 from Pixabay.com
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