Last year, 12 Retech Corp (OTCMKTS:RETC) was a top runner among small caps. Shares were as high as $0.17 at one point. However, it’s been all downhill since then and RETC got as low as $.0009 a share.
Just recently thou, the stock has been ticking higher. The company has been putting out news. This has us asking if RETC is setting itself up for another run. Looking at the chart above, we can see that RETC has a history of explosive moves.
For those that are not familiar with RETC, it describes itself as a software company whose technology allows retailers to combat the dual threats of Walmart and Amazon — both online and in physical stores. Our microbrand roll-up acquisition strategy allows us to demonstrate the effectiveness of our software, devise and test new products while providing shareholder value through immediate revenue and earnings growth. The Company operates through our subsidiaries on three continents: 12 Hong Kong, Ltd., 12 Japan, Ltd., 12 Europe A.G., 12 Retail Corporation (and its subsidiaries in North America, including Emotion Fashion Group, Inc.).
New Technology Showroom
The last news from the company was the end of November when it opened a new technology showroom in Zurich. This will allow the Company to demonstrate the fully integrated 12 Technology Suite to European luxury brands and their retail partners. The Company intends to use this showroom to demonstrate the value proposition that the 12Mirror, 12AdScreen and the 12InStore, 12Mobile and 12Sconti APPs offer to retailers. 12 Retech CEO Angelo Ponzetta said:
“The new facility was conceived to become a much-talked-about showroom for European luxury goods and high-end fashion. It will feature dressing rooms and retail displays in a 2,000+ square feet floor space. We plan to cycle brands to constantly feature new ideas for the visiting retailers. We will integrate our 12 Technology Suite into the fabric of the showroom operations so that leading designers can show their fashion collections using a new medium (by appointment only). This represents an excellent way to get in front of Europe’s prestigious retailers and show them how our technology can provide value to their businesses.”
Q3 earnings report
While RETC posts minimal revenues, the last quarterly report did show a lot of progress on the business side of things. For one, the R&D efforts to produce the second generation of the major components of the 12 Technology Suite have been successful. The company recently released new software for the 12Mirror and the 12AdScreen and the 12Moble APP is scheduled for launch.
Two, RETC continues to make progress in the US market with its wholly owned subsidiary Emotion Fashion Brands, Inc. D/B/A “Emotion Fashions”. Production is increasing at the factory and the company is making headway in both wholesale and online sales efforts. However, sales efforts yielded only $19,600 in the third quarter of FY2018.
Three, the company claims to be making progress on the acquisition front; however, none of the three deals have closed. The company claims to be looking at more deals and hopes to have some news for shareholders in the first quarter of this year.
Currently trading with a market cap of just $1 million, RETC has a history of explosive moves on the OTC Markets. However, investors need to keep in mind the company’s weak financials and inability to deliver meaningful sales numbers. While we cannot recommend RETC based on fundamentals, the stock should be on the radar screen of traders because when it starts moving, RETC can really fly.
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Disclosure: We have no position in RETC and have not been compensated for this article.
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