In our last piece about 12 Retech Corp. (OTCMKTS:RETC), we tried to explain the share price collapse that occurred in the month of August in very different ways. We said that the company was buying competitors with shares, which was bad for the stock price, as dilution risk increased.
Additionally, we said that the market manipulation may be going on and could have produced the decline. Finally, we also noted that we would be alert on the next announcements made by the company, which may help understand the share price decline. We have been doing so and obtained new information.
Moreover, we recently noted a large share price spike that we wanted to point out. It seems that the share price volatility is back, thus we will try to assess what may be happening. Have a look at the share price action before we provide more details.
For those who get to know the company in this new article, what’s the company’s business model? In one of the most recent press releases, RETC explained its business with the following terms:
“RETC is the developer, installer and operator of proprietary interactive technologies hosted on our electronic mirrors that can be installed in any high traffic location and enhanced through our 12 APP. The Company’s products are designed to get consumers back out to the brick and mortar shopping centers, malls, train, bus stops, airports and other high traffic areas to enjoy the next level of shopping experience to build loyal repeat customers for our brand partners the world over.” Source
Additionally, the following video, which we found on the website of 12 Retech Corp, is self explanatory:
Now, for our everyday readers, what’s new?
On August 15, 2017, the company announced that it had hired TEN Associates, LLC as its Investor Relations advisers. We appreciate the corporate move very much, as this new collaborator will know how to explain the share price moves, such as the one that occurred in the beginning of August, 2017. According to the press release, TEN Associates, LLC will provide the following services to the company:
- Disseminating press releases
- Speaking engagements at industry and financial conferences
- Introductions to institutional investors
- Getting coverage by industry publications
- Establishing research coverage through sell side institutions and speaking directly with shareholders
Angelo Ponzetta, CEO of 12 Retech Corporation, noted the expertise of this consultant. Additionally, he said that the company will need to release “exciting transformational announcements” and the professional experience was needed.
Furthermore, on September 13, 2017, a new filing was received by the market, wherein we could read that 12 Retech Corporation had changed the Company’s fiscal year end to December 31. We could only read the following reason to support the change: “the Board of Directors believes it is in the best interest of the shareholders of the Corporation to change the Corporation’s fiscal year end to December 31st.”
What do we think?
Since the company delivers an App, which helps retail shops increase their revenues, earnings will increase in December. Thus, we believe that having the end of the fiscal year in December may help the company predict better the earnings.
Currently trading with a market cap of $19 million, RETC is becoming interesting again. The company is still in a pre-revenues stage, the balance sheet shows no cash and a considerable amount of liabilities. Thus, we need to know how management wants to finance its future operations.
On the contrary, we appreciate the technology being developed here and management is opting for smart corporate changes. Additionally, positive news is starting to flow, thus we will need to be alert. To sum up, we encourage readers to follow this name, as it seems to be in play!
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Image courtesy of Tomas Kim via Flickr
Disclosure: We have no position in RETC and have not been compensated for this article.