There have been numerous low float stocks that have moved like crazy, gaining 100% to over 1000% in a few days or even just one day before eventually coming back down. We are putting out an alert on Tel-Instrument Electronics Corp. (TIK) which we think is about to do the same after releasing its Q1 2018 results ended June. We are up to 636 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.
At a $2.90 stock price, TIK is valued at less than $10 million. For that kind of market cap, its financial performance is what you would expect with stagnant revenues and operating losses. However, it's not the past that we are looking at when looking at a potential big spike, but the near future. TIK's management is painting a picture of the future that looks quite bright in the Q1 SEC filing, which may be followed up with a press release on Tuesday morning:
"We have recently been informed by Germany that they plan to award a contract to the Company for 275 TS-4530A test sets, which should result in a multi-million dollar contract for the Company. This award is currently being protested by an unsuccessful bidder, but we hope to receive this contract within the next few months. We are also currently pursuing opportunities in Australia and other areas in the Middle East and Canada. We have just started to receive orders from the overseas markets, and we will continue to actively market our products to all of the major international customers. Our expectation is that we will significantly improve both our revenues and gross margins starting sometime in the 2019 calendar year, but because the timing of these new orders is largely out of our hands, we expect to see continued volatility in our quarterly revenues. Nonetheless, we are encouraged by the increasing activity we are seeing for both our commercial and military products."
The company already disclosed some details about the German contract last week which resulted in a huge pop in the stock price. With expectations of a significant operating improvement in 2019 and additional international orders, we expect further good news from the company coming soon.
The real key to the opportunity on TIK is that it is a small float stock that is tightly held with minimal dilution possible. Take note of this in the Q1 filing:
The stock only has less than 3.3 million shares outstanding, but more importantly has only 4 million shares authorized. That means the risk of dilution while holding it is limited to that few hundred thousand, if any at all. This is very important because many traders get caught up in dilutive financing deals that are announced overnight on these super small float plays and get badly burned. This won't happen on TIK, at least not until management seeks approval to increase the authorized share count beyond 4 million.
The other key to seeing this stock fly would be its float. From Yahoo Finance:
TIK shares are 56% held by insiders which means the float is a mere 1.3 million! One of only a handful of stocks to boast such a low float. The fact that it has a cap on the amount of shares it can issue at 4 million makes it even rarer since it will not be able to easily dilute, for instance, like what we are seeing on HMNY right now. We think that TIK can repeat its performance as a big gainer, following up its spike on the German contract news from last week.
Disclosure: We are long TIK.
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The Cryptocurrency Codex from the Cryptocurrency Institute
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At a $2.90 stock price, TIK is valued at less than $10 million. For that kind of market cap, its financial performance is what you would expect with stagnant revenues and operating losses. However, it's not the past that we are looking at when looking at a potential big spike, but the near future. TIK's management is painting a picture of the future that looks quite bright in the Q1 SEC filing, which may be followed up with a press release on Tuesday morning:
"We have recently been informed by Germany that they plan to award a contract to the Company for 275 TS-4530A test sets, which should result in a multi-million dollar contract for the Company. This award is currently being protested by an unsuccessful bidder, but we hope to receive this contract within the next few months. We are also currently pursuing opportunities in Australia and other areas in the Middle East and Canada. We have just started to receive orders from the overseas markets, and we will continue to actively market our products to all of the major international customers. Our expectation is that we will significantly improve both our revenues and gross margins starting sometime in the 2019 calendar year, but because the timing of these new orders is largely out of our hands, we expect to see continued volatility in our quarterly revenues. Nonetheless, we are encouraged by the increasing activity we are seeing for both our commercial and military products."
The company already disclosed some details about the German contract last week which resulted in a huge pop in the stock price. With expectations of a significant operating improvement in 2019 and additional international orders, we expect further good news from the company coming soon.
The real key to the opportunity on TIK is that it is a small float stock that is tightly held with minimal dilution possible. Take note of this in the Q1 filing:
The stock only has less than 3.3 million shares outstanding, but more importantly has only 4 million shares authorized. That means the risk of dilution while holding it is limited to that few hundred thousand, if any at all. This is very important because many traders get caught up in dilutive financing deals that are announced overnight on these super small float plays and get badly burned. This won't happen on TIK, at least not until management seeks approval to increase the authorized share count beyond 4 million.
The other key to seeing this stock fly would be its float. From Yahoo Finance:
TIK shares are 56% held by insiders which means the float is a mere 1.3 million! One of only a handful of stocks to boast such a low float. The fact that it has a cap on the amount of shares it can issue at 4 million makes it even rarer since it will not be able to easily dilute, for instance, like what we are seeing on HMNY right now. We think that TIK can repeat its performance as a big gainer, following up its spike on the German contract news from last week.
Disclosure: We are long TIK.
Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:
The Cryptocurrency Codex from the Cryptocurrency Institute
Secrets To Unlimited Free Bitcoin
The Crypto-Currency Evolution eBook
Bitcoin Complete Guide for Dummies
The Bitcoin Miracle Guide
The Bitcoin Cheat Code Book
The Crpytocurrency Course
Bitcoin Investing Live
If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.
Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017
The dividend stock report from dividendstocksonline.com
The dividend stock report from Dividend Stocks Rock
Top rated signals for binary options from binaryoptionsprosignals.com
Goldmasterinvesting.com Ocean Of Gold Report for the top 15 gold mining companies
Trader Review shows how to time the market with its "Percent of X" indicator
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
Top rated signals for binary options from binaryoptionsprosignals.com
Goldmasterinvesting.com Ocean Of Gold Report for the top 15 gold mining companies
Trader Review shows how to time the market with its "Percent of X" indicator
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
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