The bullish trend on the share price of Saddle Ranch Media Inc (OTCMKTS:SRMX) has spelt doom for the company as the company’s price took a significant dip from $0.038 in August to close this Friday at $0.0019: twenty times lower.
Such trends would generally be taken to show a company failing or one that has run out of investment ideas in its young stage, neither which is the case for SRMX.
We are therefore proposing a new outlook to this price trend.
We believe that the shares have been oversold and the company is therefore due for a comeback in the near future. This hypothesis is supported by the share volumes traded during this period, with volumes slowly increasing in the period between August and November. November especially has had the highest dip in share price as well as the highest increase in the traded volumes, an inverse relationship between the two revealing itself.
This relationship can be seen in the charts below:
It is upon this backdrop that we chose to take a closer look at SRMX.
In the course of this read, we will seek to ensure the reader is in the know about the company’s history, present, plans for the future and future outlook. In addition to this, we will have a look at their financial situation and how it will impact their future prospects based on their business model. Expect a great read.
Before then, however, let us create a basic idea on who SRMX is and in what environment they operate.
SRMX: A Basic Look
Founded in 1988 and with headquarters in Las Vegas, Nevada, Saddle Ranch Media Inc was initially incorporated with the aim of venturing into the digital networks space, majorly in movies and TV shows. It since made acquisitions that would enable it develop within this space.
However, their most recent acquisition has altered their strategic orientation.
Their acquisition of Skyfidelity and its wholly-owned subsidiary Tricascade Inc with operations both in central and southern Florida as well as in Taiwan has led them to venture into new technologies and fields.
They have four main divisions: Cloud Managed Services (IoT), Solar Power Solutions, Satellite Broadband, and Wi-Fi Camera Security Surveillance. With this, the company believes they are destined to become a world-class global multi-division technology company
Finally, with the spin-out of Saddle Ranch Pictures, Inc. and the African American Medical Network on February 28,2017 they are no longer directly involved in the production and distribution of digital networks, movies or TV shows.
The third quarter has seen SRMX make some of the most strategic and operational breakthroughs in its operational life. The entity has not only come up with new products but also partnered with some of the largest players in the industry in a bid to increase their reach. All the above go a long way in showing the work management is putting into ensuring SRMX grows: all which are discussed below.
The company’s subsidiary, TriCascade released a product known as iBright7, a Smart Surge Protector different from any other product in the market.
The product is the first product of its kind, allowing consumers to more closely monitor and manage their energy usage while eliminating standby (phantom) power consumption when not using a device. It further enables people to assess the impact of their electrical consumption and behaviors on costs as well as on the environment.
This has enabled the company enter into a space they want to stay in for quite some time.
The new sector, dubbed green homes, is giving the home building sector a run for its money. This new sector entails energy-star homes, with some winning awards from the US government.
With a total of over 1 million homes, the sector entails houses with over 20% more energy efficiency than other new homes and currently comprises over 17% of new homes built.
With the green home sector booming and statistics showing that 17% of new US constructions seek smart energy devices, SRMX is well positioned to grow over the future. The $89 billion industry with an annual growth of about 9.7% is bound to get SRMX to the next level going forward.
They have recently renewed their patent for this device so as to enable them generate more revenues from it going forward. With such novel technology in their pocket, the company’s management is optimistic of a good reward going forward as they expect the market to reward them for such breakthrough technology.
This, however, was not the end for them.
The SMARTWALL Plug
TriCascade has recently released the all-new SMARTWALL Plug, an Alexa-equipped Wi-Fi enabled device that gives users the ability to monitor their energy through a cloud-based platform as well as enabling surge protection: Triple Play.
The Company has created a Mobile App-based software platform that will allow all of its devices to connect with and be controlled through Alexa-Equipped voice commands.
The company expects to market these technology to the over 130 million households and over 7 million businesses that don’t currently report any Energy Management capability. Moreover, with statistics showing that over 74% of Americans are likely to adopt new technology solutions to save on utility bills, SRMX seems to be in the right market at the right time.
Going forward, SRMX will be a major player in the IoT space as well as in home electronics. We expect that their management will take advantage of their patents as well as their advanced products to ensure that they generate revenues going into the future.
The company seems to have worked towards improving their revenue and profit position.
For the period ended March 2017, their revenues stood at $20,805 while they made a net loss of $19,648. This, though not impressive, it quite a leap from their previous position of $10,320 in revenues and $119,144 in losses.
This came during a period when their operating expenses fell nearly six times from $128,009 to $24,418
Management has stuck to their narrative that they are working day and night to ensure that their company finally registers positive earnings and cash flows going forward.
We therefore expect that if this trend continues, the company will generate incomes and positive cash flows in line with the above statements. The future, if present conditions hold, looks bright for this company.
SRMX is working towards growth and management have put in significant resources into this. Soon, their work will pay off. Investors would be prudent to be invested with them by then.
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Disclosure: We have no position in SRMX and have not been compensated for this article.