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I'm an avid trader and stock market analyst. I'm always on the hunt for a great day trade or swing trade and of course look for the next stock to hit a home run and make it from the OTC to the big boards. Fundamentally, I'm a trader and my decisions are day to day 60% of the time. I look over... More
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  • Profit In The Cloud: How Epazz, Inc Growth Signals Investment Potential

    "The Cloud"…is more than a physical technology that our movies and photos are stored on, it's become a catch phrase and of course it's become huge business. We've come to explain the storage of data that isn't on our computers as 'The Cloud' and all that data is stored on servers in a multitude of data centers for easy access around the world. But did you ever think about it beyond just that? Did you ever think of the layers of businesses that are perpetually looking for new ways to make money on the information and cloud users?

    There's so much more to this than saving files like sound bites or documents on an external server and there's HUGE business behind the scenes with big money being invested each and every day. The worldwide cloud based software market will grow at a 36% compounded annual growth rate through 2016, reaching a market size of $19.5B by 2016 according to 451Research which is one of many who have come to this approximate figure.

    With more than 38% of enterprises surveyed in the study who actually are breaking out cloud computing budgets and another 60% including cloud-related expenditure as part of their enterprise-wide IT budgets, the flow of spending by the companies has made room for organizations to come in a capture market share in an ever expanding sector.

    This is not just for ease of storage or increased bandwidth; Corporations, Institutions, and Government agencys are utilizing cloud-based software to streamline their business process, reduce costs, decrease time-to-market (or the time it takes from a product's creation to its release and availability for sale) and of course data mining. The previously mentioned study found that the median enterprise cloud-software budget is $675k and the mean enterprise budget is $8.2M. That same study also found the largest enterprise cloud-software budget at $125M. What does that mean?

    With stats like this, there's an obvious industry booming right now in the tech space specific to cloud based software not just storage of data. The average investment that companies are making just in this aspect alone is large enough to take note. Tonight I'm focusing on a company that's rooted within the cloud software space, has just reported strong revenue growth for its second quarter, and has completed several acquisitions that are slated to add several hundred thousand dollars of revenue each year.

    Epazz, Inc (OTCQB:EPAZD) is a leading cloud based software company on the OTC that specializes in providing customized cloud applications to the corporate world, higher education institutions and the provision of software and applications for the growing public sector.

    Its unique BoxesOS product is designed to provide the tools for an integrated, one-stop communication suite and from Banking to Media Entertainment, this product delivers a feature set that allows organizations to regulate work flow and implement project management tools allowing their teams to effectively assign and track assignments, securely share documents and files from remote locations and easily monitor the status of each project.

    EPAZD's software revenue model is built around licensing. Products range in price from one time fees of $4k to as much as $250k for a full enterprise solution and you better believe there are several add-ons that could make a total cost jump another $75k for support and integration systems.

    Cloud based software enables companies to access software and servers located in a secure data center, maintained by the software provider. To this end, EPAZD has had a banner year thus far seeing quarter over quarter revenue growth of 29.7% from the first quarter to the second quarter this year. In addition to that, EPAZD is also outpacing its numbers from 2013 by almost 20%!

    A major contributing factor to this as noted by the most recent quarterly filing was the company's progress with new acquisitions, which include Cynergy Help Desk (adding and estimated 15% to EPAZD's reoccurring revenue) as well as "a surveillance software company used by US colleges and universities" that is expected to bump revenue numbers by upwards of $300k per year according to a recent press release.

    With a successful mix of new, profitable acquisitions and strong accelerated growth through EPAZD's licensing model the company should be able to maximize its revenue and pass the dividend to its shareholders. At this point I think the market has reacted positively to the company's most recent progress and after seeing how trading has went during the last few weeks, I feel that EPAZD could be in the early stages of a new wave of positive market momentum.

    Volume has progressively increased over the last 10 trading days and EPAZD has seen highs in the last month of $0.60. In my opinion, if this trend continues and Epazz catches traction, there could be a breakout in the making.

    Oct 22 9:36 AM | Link | Comment!
  • Acology Inc.: How Its New Corporate Facility And Branding Strategy Should Boost Expansion

    Since first covering the "Accessories" market Acology, Inc (OTCQB:ACOL) has just begun to trade in the marketplace. Acology markets and sells a medical grade container for pharmaceuticals and anything that needs to be in a non-leaching, airtight and watertight environment. From its initial trade price of $0.50 at the time of my article, the stock has seen highs of $0.70 and gains of 40%. Currently trading back around $0.50 it would seem that investors are taking notice and following the recent announcements on earnings results as well as a new corporate headquarters.

    On October 6 the Company announced earnings that showed an 87% increase in gross revenues ending June 30, 2014 compared to the same period last year, in addition to demonstrating efficient operational activities from a gross margin of 67%. As the movement for new medical options begins to grow, the company's simple yet unique and patented product starts to make a lot more sense for customers and in turn, potential investors.

    Just this past week, Acology began its transition to a new headquarters and manufacturing facility in Corona, CA. The 10,000 sq/ft warehouse and office complex features customer service electronics, data processing and shipping systems that will enable customers to order and receive Acology products quickly and efficiently. Acology also noted that it is consolidating all of its executive office space, sales staff, manufacturing, R&D, and fulfillment into its new facility.

    This move should provide more expansion capacity to support the Company's global growth strategy. The location of this new facility could play out well for the company especially after seeing the current climate of this new market. Just look at California alone, which only provides medical marijuana; the state brings in roughly $109M in tax revenue a year and after taking into consideration the sales tax rate is around 8.4%, you're looking at an industry that had gross revenues of nearly $1.3Billion from medical sales alone.

    The Medtainer is specifically designed as a container for medical applications and due to the effectiveness of its patented seal and enclosure; it should be a good fit for California's current population of cannabis medication patients. Since California has over half a million medical marijuana patients, this could give a "hometown advantage" to Acology. Even running simple numbers, should each patient only purchase one Medtainer at about $10, the gross revenues would be in the ballpark of $5.7million but more importantly noted is that this is a new product to market.

    With this new facility being headquartered stateside, Acology will be creating new jobs as well. According to the Company's most recent PR, the location will house both the manufacturing and fulfillment side of the businesses. This should decrease shipping times and increase order fulfillment in the long run especially since much of the excitement is starting to build on the west coast with states like Oregon and Alaska pushing for legalization. This is in addition to other states like Washington Arizona, and New Mexico taking up some of the majority in tax revenue generated from medical sales and makes the California location even more of a "centralized" distribution hub.

    Beyond the potential revenue just from California and on top of the opportunity for increased distribution for some of the country's largest medical states, the investment potential for Acology could lie more in its mass appeal for popular culture to boost both sales and brand awareness. Just look what an endorsement from 50 Cent did for Vitamin Water purchased by Coca Cola (NYSE:KO) or what the hundreds of sports figures have done for MusclePharm (OTCQB:MSLP). Though it's still early for Acology, there are still several celebrities who have been found using the product including the Wu Tang Clan, B-Real from Cyprus Hill, and even Sam Scryer, the Marketing Director for RedBull.

    (click to enlarge)

    In any case, there is always risk involved in any investment. For Acology, limited trading history and a volatile market are two of the foremost. In addition to this, those looking to invest in ACOL will also look to keep a close eye on the next quarterly statements as well as company announcements being that the information out in the public today has been limited to a corporate website and several hundred videos of the Medtainer at trade shows around the world. Be this as it may, Acology could also have a lot of upside potential especially at its current price point.

    It was less than a week ago that the stock was pushing new highs and after having seen some profit taking recently, these $0.40 levels could show signs for a rebound. It is still very early to tell but in my opinion, if the company can engage the public with a solid mix of branding coupled with a streamlined distribution strategy, these next few quarters could be positioned for growth especially since it is within a market also slated to grow over the next few years. For these reasons, I think Acology should be an accessories company to watch heading into the fourth quarter.

    Oct 13 7:50 PM | Link | Comment!
  • Can OriginOil Be A Bargain At These Levels?

    This morning OriginOil (OTCQB:OOIL) released press announcing that the company has finally completed its GEN 2 frack water cleanup system and is ready to ship it off to Delta Colorado for field testing. More importantly is the fact that this GEN 2 system could be a gamechanger for the fracking industry based on the modular capabilities and overall scalability of the system.

    Each Gen 2 module can process up to 3,000 barrels per day (bpd) of contaminated frac flowback and produced water. Up to four of these can fit into a 40-foot container, treating up to half a million gallons each day. If there needs to be more treated...just add more units. The GEN 2 also employs the same energy saving benefits of its previous GEN 1 system and most importantly, the Company looks to deliver the same results as it pertains to the removal of suspended solids.

    "Our GEN 1 industrial demo system was up and running! That's how we are proving the tech to prospective clients, with real contaminated water in the field. Meanwhile, we ramp up GEN 2 to deal with 10,000 bpd and well beyond."

    Riggs Eckelberry, CEO, OriginOil, Inc.

    Now that this second generation has been completed Origin is now ready to send it out to be put through its paces at ISI's facility in Delta, Colorado. In addition to these giant steps forward for Origin's next generation of frack water cleaning, all last week, truckload after truckload of frack and produced water rolled into a Salt Water Disposal (SWD) site near Midland, Texas where Origin's partners watched as the company's VP of Engineering, Lee Portillo, adjusted for variations in the fluids from different wells throughout the region.

    In conjunction with these successes in Oil and Gas, the company has also continued to pursue a market leading roll in algae harvesting mainly for the purposes of offering a source for animal feed. Heard at the ABO Summit: "this is the hottest thing on this show!" (Hugh Morris, AlgEternal)

    (click to enlarge)

    Based on these latest developments with OOIL it looks like Origin is firing on all cylinders and could have a multi-pronged revenue model in place to capitalize on through bringing game-changing technology to several industries. Furthermore, it appears that OriginOil has pull back to a previous support seen last month just prior to its most recent bull run. For potential investors and current shareholders, this price channel could offer opportunity to take advantage of these lower levels especially as it seems that the Company has begun to move forward with several major milestone projects heading into the final quarter of 2014.

    Oct 07 9:49 AM | Link | Comment!
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