It is time for my annual ritual of selecting one particular stock that I think has the possibility of rising 100% or more over the next twelve months. Last years selection was Mart Resources (MMT.V). Here is the initial writeup on Mart. The stock more than fulfilled my goal of at least 100% in capital gains and in this case has become a dividend payer. I continue to hold the stock.
The stock I have chosen for 2013 is Cortex Business Solutions (CBX.V). The company website says that;
Cortex Business Solutions is an enterprise eProcurement solutions company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers.
The Cortex Trading Partner Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices, resulting in improved cash flow management and business controls while reducing days outstanding and administrative costs.
Cortex is a low cost, low risk cloud-based solution that can be implemented quickly by leveraging its customers' existing business environment.
Basically the company business is to provide a platform for managing the payment of invoices with an initial emphasis in the oil and gas business. What attracted me to this business is the revenue model which consists both of an upfront payment and a reoccurring revenue stream. Here is a link to the company's presentation which will give a more in depth explanation of the business and the hub and spoke system and how this networking is growing exponentially. In fact that exponential or hockey stick type breakout upwards in revenue is the catalyst that I expect to bring attention to this stock and a consummate increase in share price.
The company has moved past the early adopters phase and is now reaching the stage of market acceptance where the product has been proven and is now mainstream. This is proven by the customer base of companies that have adopted the product like; Suncor, Apache, Husky, Nabors, Clean Harbors to name a few. These are not the type of company's that just adopt any system or product on a whim and especially a new system for payment and procurement. The company continues to show increases in hubs, network traffic, and invoices processed as indicated on its most recent monthly report. Also take a look at the company factsheet where one clients experience with Cortex resulted in $6 million in yearly savings along with a myriad of other benefits. The company is not currently profitable but I am hopeful that it will become cashflow positive in 2013. The other catalyst will be the continued viral growth of the network and exponential growth in invoices will continue. I also expect them to branch out into other industries such as Utilities and construction. The company reports earnings on 12/20/12 so it would probably behoove any prospective speculators to listen to the call and see if the company is still on track business wise. I am an owner of shares of Cortex Business Solutions in the $.15 to $.165 cent range. This is a highly risky speculation suitable for those with a large tolerance for risk but the potential for at multi-bagger return is certainly possible. This is not advice please do your own due diligence.
Disclosure: I am long CTXZF.PK.