- Management believes 2018 will shatter company records -vs- 2017
- Recently became fully current in February
- Plans to Up-List to OTCQB
- Enters Cannabis Markets in California and Colorado
- Announced $500k sales increase; $6 million YTD
DirectView Holdings (OTC: DIRV), a company focused on ownership and management of leading video and security technology companies, has been on a tear since it opened at $0.0046 on Monday morning. Today, Wednesday March 13th, DIRV has hit $0.013, nearly a 300% gain for the week. News today elaborating on a surveillance deal with a large retail footwear and apparel company has given an already strong uptrend new legs. The significance of breaking the $0.01 mark is indeed a great start for the company which wishes to up-list to the “QB”. One of the OTCMarkets qualifying requirements is to trade at least 30 days at a penny or better.
Let’s take a look at recent announcements of the company, while taking a look at the CEO’s quotes for more clues on what is more to come for shareholders.
Deal with Footwear & Apparel Retail Chain
DirectView will provide comprehensive security solution installations of all security surveillance equipment and infrastructure at all upcoming new locations, plus an ongoing service contract for retrofits, for a leader in the athletic footwear and apparel retail space. The retailer has approximately 200 planned locations and 150 locations presently installed, all of which are planned for upgrades. The anticipated revenue per location ranges from approximately $7,000 to $18,000 and $70,000 for the corporate office and distribution center location.
If all stores will get upgrades, lets do the math. Low end (and lets only do 150 rather than all 200 that are planned) using $7000 x 150 is $1.05 million – $2.7 million at the high end of $18,000 per facility.
Roger Ralston, DirectView CEO, stated: “We continue to find massive opportunities with current and new clients in the surveillance camera and VMS space we serve. It is amazing how the market is evolving and experiencing such rapid growth. There is virtually no vertical market that cannot use the products and service we sell. DirectView is currently realizing record sales and increasing profits and looks to parlay that into continued growth both organically and through its rollup strategy.”
Company Showing Is Showing Shareholders Good Faith
DirectView had its filings completed mid-February which is a great sign that there is something brewing. I have been around penny stocks long enough to know that where there is smoke there is usually fire, and no company spends the time, money and effort to go current if they don’t have something of substance about to happen.
Roger Ralston, DirectView CEO, commented, “We have been tying up the loose ends over the last few months to fully integrate our newest acquisitions onto the books. But now that’s behind us, and we have so much to look forward to in the weeks and months ahead. As investors will see in coming days, we have a number of exciting projects just concluded, still underway, and set to get started. This is an extremely exciting time for the company.”
The quote is “key” as it tells us about acquisitions, the filings are done, and forecasts that more news is imminent that will shed light on these exciting projects.
Company Already Announcing Monster Sales Growth
Mid-February, DIRV announced its record-breaking revenue growth so far for in 2018, with year-to-date revenues up another $500k to total $6 million so far this year. The latest 10-Q filings show quarterly year/year sales growth of 1,689% for the three months ended September 30, 2017.
Management believes 2018 will shatter company records from last year as recent acquisitions and expansion into high-growth areas like cannabis production facilities are powering the Company’s core model. The Company is also benefitting from a list of factors that have converged to catalyze improved performance, including:
- Additional experienced sales staff
- Larger national clients
- A strong vertical in large manufacturing and warehouse facilities with locations in the million square foot range
- A new location in Dallas, TX with strong functional differentiation, including a large lab and tech support area, sales bullpen, accounting, shipping, and warehouse
- A revitalized web presence and excellent SEO at multiple websites
- A centralized home base with strong geographic range enabling effective service for clients across the country
Roger Ralston, DirectView CEO, commented, “We are starting to see the fruits of last year’s strategic roadmap come into play and tie in with a number of inherent operational advantages right now. It always comes down to execution in the end, but it helps to put yourself in a good position at the start. We also made a mission of getting traction with clients involved in hemp and cannabis cultivation and processing late last year. Developing long-term relationships with clients attached to strong growth curves is good business as it is a legal requirement at every location, and it’s starting to pay off this year in a big way.”
As we love to breakdown “Easter eggs” and analyze CEO quotes from press releases, we see mention of the hemp/cannabis side of things as CBD is still the rage in the nutraceutical space and an in our opinion, still in its infancy. Why the share price jump now if there was already growth? Easy, when a company doesn’t file, it gives the investment community the assumption your company is dormant. Filings, press releases… all cost money, so companies sometimes hold onto news until they have reason to jump in the spotlight. Again, the fact they filed, and are announcing press is a major sign they are in a news cycle and we expect more to come.
Providing Security Solutions for Cannabis Processor in California
DirectView will provide comprehensive security solutions for Level 5, a new multi-level state-of-the-art CBD processing facility in Northern California, including the installation of all security equipment and infrastructure, as well as the servicing of an ongoing security contract at the facility.
Level 5 Custom Processing, Inc., an emerging CBD processing hub serving the greater California cannabis marketplace, is located in Mendocino County, CA. The facility is set on two floors, with significant space dedicated to manufacturing and handling product assets. DirectView will be tasked with the installation of substantial security infrastructure, including a large number of DirectView IP surveillance cameras, as well as ongoing deployment of full security services at the facility.
Management believes this contract will provide the Company with a foot in the door as a leader in security infrastructure and services for businesses involved in the booming $3.7 billion California cannabis marketplace as it already has multiple clients in the state of Colorado.
Roger Ralston, DirectView CEO, stated, “We continue to find huge opportunities servicing the massive growth boom going on in the cannabis marketplace. With its legalization move this year, California is quickly becoming the most important market in that boom, and this new contract puts DirectView squarely on that playing field.”
The California cannabis market is expected to hit nearly $4 billion in 2018 sales, and increase to over $5 billion in 2019, according to a new report from Business Insider citing research by leading firm BDS Analytics. Management believes this demand-driven boom will foster enormous new infrastructure, including many more establishments similar to the Level 5 Custom Processing facility. With strict regulatory requirements in place necessitating capital spend on comprehensive security measures in all such facilities, the boom continues to represent a defining opportunity for the Company going forward.
Mr. Ralston continued, “We expect more deals like this to come our way because the space is growing at breakneck speed and all of these businesses have regulatory requirements to install and manage fully-secured facilities. We were already setting new Company sales growth records so far in 2018, and this should simply add fuel to the fire.”
Looking at this quote, we can assume the company will announce more deals with cannabis related companies in California, which will only fuel their 2018 numbers.
Investment Summary
As we stated, companies do not file unless something is up and rightfully so, we have witnessed share price increase, more news of record revs and deals that increase their foothold in the cannabis markets of both California and Colorado and an additional deal with a retail chain. The more clientele they gather, the easier it will be to become the “go to” company for surveillance needs. The charts look great, and the volume is strong, allowing great liquidity for OTC traders. Additional sales can bring this stock to be multiple pennies or higher, as the CEO sees to hint much more is to come.
Disclosure/Disclaimer: PSInvestor.com has NOT been compensated for this article, nor do we currently hold a position in the company. PSInvestor’s goal is to cover and bring awareness to its readers “Hot Stocks” in the Penny Stock market. To read our full disclaimer, please go here.
