Diversification is an a strategy most investors know well. In times like these, diverse risk is the safest way to maximize gains. As such, companies employing this strategy tend to do well in a plethora of market conditions. There have been many diverse penny stocks making news recently that deserve your attention.
Sparta Commercial Services, Inc. (OTCMKTS: SRCO) is a diversified company with interests in both CBD and crypto among other industries ( e-commerce, website & mobile app development, and nationwide municipal lease financing solutions for essential equipment.)
A few reasons SRCO deserves mention with these high potential companies include:1. Rising Revenues- in Q3 the company saw a boost in revenues. In the quarter ending January 31, 2022 the company’s revenue increased over the previous quarter.
2. Growing Margins- rising revenues are only impressive if the cost of revenue doesn’t grow at a faster rate. In SRCO’s case, not only is its revenue increasing, but its cost of revenue relative to the total sales has actually lowered, improving profit margins. For the first 9 months of fiscal 2022, its cost of revenue has actually decreased by ~40%, its operating expenses have also decreased by ~30%.
These numbers tell the story of a company making more money while spending less of it.
3. Less Risk, More Reward- The company’s expenses related to building its newest vertical, SpartaPay IQ – a crypto-payment solution, have been factored in and it is now set for launch. This means the price associated with the risk is factored into the share price, however, the potential reward is not.
There is an opportunity for arbitrage and new investors have a chance to own shares before the potential revenues from this latest vertical are factored in, not to mention ongoing revenue growth from its legacy businesses.
In its most recent filing SRCO expouses, “…We do not anticipate incurring significant research and development expenditures, and we do not anticipate the sale or acquisition of any significant property, plant or equipment, during the next twelve months. On January 31, 2022, we had 6 full-time employees. If we fully implement our business plan, we anticipate our employment base may increase during the next twelve months. As we continue to expand, we will incur additional costs for personnel. This potential increase in personnel is dependent upon our generating increased revenues…”
This would mean the only significant increase in expenses will be if the company needs to hire more employees to service the growing demand.
Start research on SRCO here: https://capitalgainsreport.com/srcos-rapid-revenue-growth-and-why-investors-should-care/
NextMart, Inc. (OTCMKTS: NXMR) is currently a shell company with a new management team that plans to become a current alternative reporting issuer with OTC Markets.
It kicked off the month announcing its new CEO and president, Oscar Maldonado. Maldonado’s experience is in oil field services as a former owner and officer of Two Brothers, LLC, a specialized oil field service company. NXMR has acquired this company as well.
Dalrada Financial Corporation (OTCMKTS: DFCO) is another diverse company, its subsidiaries that are positioned in healthcare, clean energy, and technology. DTCO’s clean energy subsidiary, Dalrada Energy Services (DES), has entered into a strategic partnership with Banyan Infrastructure, a San Francisco-based software company. The partnership provides a secure cloud-based software as a service (SaaS) solution for DES sustainable infrastructure and renewable ESG projects, improving banking transparency.
ESG reporting has been a hot topic in the business world as more investors favor companies in the space and regulatory agencies are starting to lay out guidelines for companies and firms to disclose ESG related information.
Team, Inc. (NYSE: TISI), is a diverse maintenance and service company. It just received notice from the NYSE in June that it is no longer in compliance with the NYSE continued listing standards set forth in Section 802.01B of the NYSE’s Listed Company Manual due to the fact that the Company’s average global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time. Since the announcement TISI’s shares have dropped, however, it looks like it may have found its bottom which is why it is worth doing more due diligence on the company at this level.
GEE Group Inc. (NYSE: JOB) is a provider of specialized staffing solutions operating in two industry segments, providing professional staffing services and solutions in the information technology, engineering, finance and accounting specialties and commercial staffing services through the names of Access Data Consulting, Agile Resources, Ashley Ellis, General Employment, Omni-One, Paladin Consulting and Triad. This is a good time to be in staffing as the workforce ebbs and flows continue to fluctuate.
JOB’s subsidiary Agile Resources recently announced it is a 2022 winner of the Atlanta’s Best and Brightest Companies to Work For® award. This award recognizes companies that display a commitment to employee enrichment and dedication to work-life balance.
Start your research with SRCO today: https://capitalgainsreport.com/srcos-rapid-revenue-growth-and-why-investors-should-care/
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