The Advocacy Network through its Smart Decisions about Money educational platform is creating a new program developed for investors to find consistency with small cap investing. Small Cap Investing made Easy will define and establish core principles with which investors may quickly identify and invest in small cap winners. The program is designed to eliminate the fluff and pump and dump mentality that has long made suffering through losses the reality of experience for small cap investors. On occasion we will provide a case study as we do today.
International Commercial Television (ICTV:OTCQB) sells consumer products through a marketing strategy driven through infomercials, website presentation and live television home shopping networks. Currently, this plan is being executed with the DermaWandtm and the DermaVitaltm skincare line. ICTV has grown its customer base in excess of 3000% during 2012 and continues to grow both customers and revenues at an exceptional pace. Management has developed and proven execution on the initial stage of long term growth cycle.
A close review of ICTL shows some core positives. The company was started in 1998 and went public in 2002 (longevity and survival). In 2012 the company had a revival with dramatic growth as they produced approx. $23M in revenues up from around $3M in 2011. This growth was developed through a long term product line and the customer base was a major part of the growth cycle as that base grew from under 2000 to almost 15,000 (now over 19,000 to date) This company has a 3 pronged growth strategy which increases the customer base, increases the purchases per customer and increases the amount of purchase per customer. This hat trick growth strategy creates what Jay Abraham calls exponential growth. Therefore unlike their competition ICTL does not grow linearly but they establish an exponential growth pattern.
The company has a positive capitalization structure with just over 21M shares outstanding and approx. 4M shares in the float.
In Q1 of 2013 the company reported net sales (revenues) of over $12.4M as compared to Q1 2012 of just over $2.6M. More importantly though the company reported fully diluted EPS of $.05. This growth cycle is due to professional management and exceptional marketing concepts.
The most impressive strength of ICTL is its continually growing cash position. In a climate where funding and cash infusion is a major stumbling block, a company that can produce and establish consistent cash growth is superiorly positioned to any competition. Reviewing the filings of ICTL will validate a continuing growth of cash. The product line is a cash machine. Any micro-cap company that can create and control a cash flow vehicle is a long term winner.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.