Beyond Commerce (BYOC) is today’s OTC focus stock after rising from triple zeroes. Over the past five days, Beyond Commerce has run almost 400% on massive volume. This penny stock has runner written all over it and we are taking a closer look at what’s driving the price action.
As you can see from the chart below, we still haven’t touched the 52-week highs of $.0053 a share from earlier this year. If Mr. Market can push Beyond Commerce above new highs, it’s blue skies to a penny.
If we can get above $.01 a share, Beyond Commerce can make a run towards its 2-year highs of $.10 a share. There is just minimal resistance at the $.03 level.
First up, here’s a little background info for those not familiar with the company. Beyond Commerce is focused on the acquisition of “big data” companies in global B2B internet marketing analytics, technologies and services. The Company’s objective is to develop and deploy disruptive strategic software technology that will build on organic growth potential and to exploit cross-selling opportunities. Beyond Commerce plans to offer a cohesive global digital product and services platform to provide clients with a single point of contact for their big data, marketing and related sales initiatives.
Beyond Commerce is a name that we are quite familiar with here at Insider Financial. In early 2019, the company completed its deal with SERVICE 800, Inc. The two companies deliver industry-leading CX solutions and services to each other’s clients and associates. The combination expanded and enriched the value each company offers its respective clients.
Headquartered in Minneapolis, Minnesota, SERVICE 800 is a leader in the burgeoning field of Customer Experience (CX) management platforms. Some of the world’s largest companies rely on SERVICE 800 for their consistency targeted data. For 30 years, SERVICE 800 has worked with many of the world’s top Fortune 500 companies within the following sales verticals; Healthcare, IT Services, Medical Technology, Industrial Technology, and Consumer Goods.
In July, Beyond Commerce acquired E.G. Insight, Inc., a St. Paul, Minnesota based customer and provider of employee data analytics. The deal added $1 million in yearly revenue for Beyond Commerce.
E.G. Insight works with global clients to gather and analyze meaningful information about their strategic accounts, competitors, and employees. E.G. Insight focuses on asking the right questions of the right people – the relationships that matter most to clients. E.G Insight’s proprietary approach begins with gathering in-depth, strategic feedback from a company’s most valued customers. The philosophy emphasizes directly identifying and addressing the needs of the customers and has created the Customer Review process to implement this approach. With over 300,000 interviews completed in more than 70 countries, E.G. Insight has been equipping organizations to have in-depth, structured conversations with their most important contacts since their inception.
E.G. Insight also set out to find a solution that would help businesses implement the organizational changes and quality improvements requested by valued customers. The result was a unique process called the Talk2® interview, which was designed to tap into the experience and ingenuity of employees and gain deeper insights from these critical workers. Today, it is being utilized to find solutions to tough organizational challenges like workforce diversity, merger & acquisition integration, and leadership changes.
Beyond Commerce Q2 Results
Prior to the acquisition of E.G. Insight, Beyond Commerce posted impressive Q2 results, in spite of the COVID-19 pandemic. Key Financial Highlights for 1st Half 2020:
- Revenues increased by 21% to $2.0 million
- Gross profit increased by 11% to $1.4 million
- Gross margin of 67%
- Operating loss increased by 45% to $1.3 million
- Net loss decreased by 71% to $2.6 million
- Total assets of $5.8 million
- Total shareholders’ deficit of $3.3 million
Beyond Commerce and SERVICE 800 have been scoring some major contracts. In the last few weeks, the two companies have announced deals with Metrasens, Compass Minerals, and Cargill. We expect many more contracts to be announced over the next coming weeks, which will help propel shares of Beyond Commerce higher.
Two major items that Beyond Commerce just announced are:
- NO reverse split
- Increasing the number of authorized shares to five billion
This is a huge development for shareholders. First, reverse splits only benefit shorts. Second, increasing the authorized share count tells us one thing – an acquisition may be imminent and that’s why Beyond Commerce needs to issue more shares. We believe major news is coming shortly, judging from recent price action and the frequency of PRs hitting the tape.
Beyond Commerce Bottom Line
Trading with a market cap of just $7.2 million, Beyond Commerce is an exciting story on the OTC Markets. The stock looks extremely undervalued at current levels when you consider the company is on pace to doing $5 million in revenues this year, with the E.G. Insight deal factored in. When you look at how the company has grown in the last year while its share price languished, Beyond Commerce is set to run a lot more. Dips are to be bought.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in OTCMKTS:BYOC, or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.