21st Century Stocks & Sectors page highlights undiscovered micro-cap companies - typically low-priced companies with market caps of 500 million or less in three key sectors we believe are headed for substantial growth over the next decade: (1) Healthcare; (2) Internet and IT; and (3) energy and environmentally clean technology. Micro-cap companies typically lack Wall Street analyst coverage, and are inefficiently priced and/or often thinly trading the proverbial “tree in the forest.”
We are adding Location Based Technologies, Inc (LBAS: OTCBB) to our watch list and have added a landing page for LBAS on our website’s Stocks & Sectors section under Internet & IT.
Location Based Technologies, designs and develops leading-edge personal locator GPS devices and services that incorporate patented, proprietary technologies designed to enhance and enrich the way businesses and families interact globally. The company’s has been developing its product for over 7 years and has close to 20 million invested in product development. They’ve received product certification and FCC & GSM approvals
Potential markets for the product include young children, pets, seniors especially those that may suffer for Alzheimer’s and Dementia, mobile workforce, and vehicles. In the US, Canada, and Europe there are 84 million kids ages 5-13, 103 million pets, 9 million commercial trucks that could use LBAS’s locating services, translating into a vast market and multiple applications for LBAS product.
The company is planning on charging $129.95 for the unit + a monthly fee of $12.95 per month. The potential recurring revenue opportunity is enormous, if just 100,000 people sign up for the service…that would translate into $13,000,000 in revenue from one time product sales +17,000,000 in annual recurring revenues….at 1,000,000 customers we are talking about approximately 130,000,000 in one time revenue and 170,000,000 in annual recurring revenue!!
The company is currently entering the growth phase of its business, and is rapidly ramping up production. In addition LBAS is getting ready to introduce a new series of products based on enhanced mobile applications for GPS Smartphones to enable businesses and families to optimize their busy, highly mobile lives and enhance their ability to stay connected.
In the last week LBAS has made several major announcements that have set the stock on fire.
On July 27 the company announced that its first volume production PocketFinder® devices will be manufactured at the San Jose, CA, facility of Jabil Circuit, Inc. (NYSE:JBL) JBL has the capacity to produce up to 1,000,000 units per month.
On July 28 the company announced it has closed a private placement of 50,000,000 shares of its common stock. The securities were sold to institutional and accredited investors at a price of $0.20 per share. Craig-Hallum Capital Group LLC and Think Equity LLC acted as placement agents for this transaction. The net proceeds to the company from the sale of these shares, after deducting the placement agent fees and estimated offering expenses, are estimated to be approximately $8,998,500.00.
With the closing of last week’s financing, LBAS is now in a position to begin to produce results. The stock closed Friday at $.47 up $.10 for the day over 100% last week and 213% over the last year. We would really get excited if the stock pulled back to the $.30 range. The all time high on the stock is $3.50 in June 2009.
CrowdGather reported strong 4th quarter and year end results CrowdGather reported earnings for its fiscal year ended April 2011. The company’s rapid transition into a significant publisher network, comprised entirely of forums, allowed for an increase in 2011 revenues of $1.271 million or 410% over fiscal 2010 sales and a $617,466 decrease in its year over year net loss to a net loss of $2.812 million for fiscal 2011. The increase in revenue was primarily due to increased advertising revenue from CrowdGather’s branded and hosted forum properties plus revenue generated from the Company’s Adisn’s display and per-action advertising campaigns. CrowdGather’s management discussed its results as well as provide some guidance on the 2012 fiscal year. We would encourage those that did not participate in the Company’s Annual conference call to listen to the taped recording of the event: 1-800-406-7325, passcode 4460195# (Available until 11:59 p.m. on August 4, 2011)
CrowdGather reported earnings for its fiscal year ended April 2011. The company’s rapid transition into a significant publisher network, comprised entirely of forums, allowed for an increase in 2011 revenues of $1.271 million or 410% over fiscal 2010 sales and a $617,466 decrease in its year over year net loss to a net loss of $2.812 million for fiscal 2011. The increase in revenue was primarily due to increased advertising revenue from CrowdGather’s branded and hosted forum properties plus revenue generated from the Company’s Adisn’s display and per-action advertising campaigns.
CrowdGather’s management discussed its results as well as provide some guidance on the 2012 fiscal year. We would encourage those that did not participate in the Company’s Annual conference call to listen to the taped recording of the event:
1-800-406-7325, passcode 4460195#
(Available until 11:59 p.m. on August 4, 2011)
-General and administrative expenses (G&A), expected to remain stable at approximately $2.8 million, after increasing $1.286 million as a result of the revenue increase.
-Adsign technology platform expected to go live in January 2012: The launch of Adsign could represent upside in future advertising rates and ultimately the companies top line revenue:http://www.stocksnsectors.com/watchlist/internet-and-it/crwg-recent-acquisitions-including-pbnation-com-upside-in-future-advertising-rates/
- CrowdGather provided guidance for fiscal 2012 revenues, anticipating baseline 2012 advertising revenue of at least $1.9 million driven by current monthly page views and unique visitors. During April 2011, CrowdGather monthly page views across all properties increased roughly 79% year over year to 140 million while monthly unique visitors grew approximately 114% to 15 million over the past year. CrowdGather had approximately 15.5 million users registered on the Company network sites as of April 30, 2011. The guidance does not include potential acquisition
- The Company anticipates multiple acquisition opportunities in 2012
The strong earnings report could be the catalyst to bring buyers and demand back into CRWG. On a technical basis the stock appears to be oversold despite Friday’s 29% move. The 50 and 200 day moving averages are $.70 and $1.09 respectively. A close above $.60 on strong volume would be a confirmation indicator of the reversal of its multi month down trend. On a longer term basis, both Zacks and Singular Research have $2+ price targets on CRWG:
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