Our last piece on On4 Communications Inc. (OTCMKTS:ONCI) was released on September 4, 2017. However, just five days later, we need to again provide new information about the company.
For what reasons?
Mainly because its share price did not stop rising as a result of very recent news. The company has signed a major new contract with a California dealership with brands including Mercedes, BMW, Chevy, Ford, Audi, Kia, Hyundai, and Subaru. Have a look at the price action this year. It’s very very impressive and a big winner for Insider Financial.
The readers who have followed our coverage on the stock will remember that we commenced writing about the stock when the share price was at the level of $0.001 per share. We encourage readers to check our past conclusions, as the returns delivered by the this stock have been astonishing. Those who bought when the first article was released are sitting on gains of over 300%. As of September 11, 2017, the share price is $0.0092.
ONCI is focused on the acquisition of new technologies, and promising business models. However, we believe that the company is being followed because of its ability to sign business agreements. In particular, we commenced to cover the stock because of the large amount of good deals signed with well-known and established companies. In the previous article, we saw deals with ENTERPRISE RENT A CAR, General Motors, and Google Brazil. As mentioned in our previous reports, if these corporations are making agreements with the company, then ONCI is the real deal.
That’s not all.
We remind investors that ONCI is expected to meet BMW at its Corporate Headquarters in Munich, Germany, on September 15, 2017. As it will be this Friday, we thought it good to note it in this article as well. It may be a big catalyst, so be alert, because if the company signs any kind of agreement with this company, the share price could react by jumping high. Readers can check the company’s news on ONCI’s website or subscribe to our newsletter for fast assessment and delivery of significant news.
On September 9, 2017, the market got to know that ONCI had signed a contract with a California dealership with some of the most famous car brands in the automotive industry. The CEO, Steve Berman, explained that the contract is for 25 dealerships in Los Angeles and Orange County, California. Additionally, he said that each of them will take 20 units per month at $200 a unit, which is $100,000 per month and $1.2 million per year. For those who like to figure out the type of quarterly earnings to be released, there is more information; the units will be delivered on October 1, 2017. We, like the market, appreciate the news and understand the recent share price increase.
On top of it, some other less relevant announcements were made in the same press release. The company had elected a name for its FMS safe driving app; BSAFE MOBILE. For those who are getting to know the app for the first time in this article, it protects the driver from the dangers of distracted driving. For a price of just $250 per unit, the users can track vehicles anywhere even under 5 feet of concrete. Does it have a lot of demand? It seems to have a lot of demand, as pre-sales have been ordered already.
Regarding other apps under development, the company noted OKGOLFER, which tells the player for only $100 what club to hit based on his/her handicap and speeds up the game by 2 hours. Additionally, another app is GOLF GAMBLER; a free app that lets golfers gamble on their round. Finally, an alcohol tracking sensor similar to a breathalyzer and another sensor to monitor car temperature and determine whether a car seat is occupied are being developed. We appreciated that the company is innovating and growing, but we need to wait and check the revenues that these apps return.
Regarding the meetings with brands, which we believe is key, new information was given:
“Our September 6 meeting with Enterprise Rent A Car was postponed due to Hurricane Harvey and is rescheduled for September 28th. Enterprise is sending 10,000 vehicles to Houston to assist in the cleanup efforts. Google Brazil sales have begun and now average 25 units per day. ” Source
Currently trading at a market capitalization of $4.5M, according to the last quarterly report, ONCI has approximately $0.2 million in net receivables, and approximately $2.9 million in accounts payable. The company will be releasing the second quarter financials by September 15, 2017. We expect a big improvement once the numbers hit the tape. In our opinion, the market seems to be pushing up the share price because of the future revenues that could come out from the agreements with big companies. ONCI is one penny stock that looks set to keep climbing.
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Image courtesy of Juan Fiallega via Flickr
Disclosure: We have no position in ONCI and have not been compensated for this article.