Rjd Green Inc (OTCMKTS:RJDG) Is A Low Float Runner

The share price of Rjd Green Inc (OTCMKTS:RJDG), the holding company, popped in July on large volume. The company put out its last quarterly report, wherein revenues of $1,019,029 were reported. In this piece, we will let you know what happened and note some other good facts as well. But, before we provide you all the details, have a look at the recent share price action.SourceBusinessSourceRJD Green Inc is involved in the business of acquiring and managing assets. More specifically, the business objective is the following:

"We are in acquisition discussions at this time. We expect to continue to make acquisitions annually that are within our focus as a holding company that owns and manages growth companies within environmental services, healthcare management services, and construction / industrial specialty contracting."Source: 10-Q

The firm operates in three divisions; RJD Green Healthcare Services Division (hospitals & healthcare), Earthlinc Environmental Services Division (green technology), and Silex Holdings Division (constructions and manufacturing). RJD Green is an Oklahoma based firm, which was founded in 2009. The firm has a 5-year license agreement on a software platform called as IOSOFT. Recent DevelopmentsOn April 25, 2017, RJD Green announced via a press release, which confirmed that Zwick & Banyai, the audit firm, is set to initiate audits. May 22, 2017 was set as the audit initiation date for the firm. The audit was set for four to six weeks from May.On May 16, 2017, a press release announced that the firm acquired a five-year license for a patent-pending software platform “IOSOFT,” which is expected to help the firm acquire synergistic services and technology for its client base. IOSOFT is a third-party developer of software and provides IT support for its platforms. RJDG management expects that the option could hike the yearly revenue by 10 to 15%. David Gillman, the Executive VP of ISOFT Inc., quoted the following:

“In Healthcare, mailing and delivery of payments are some of the highest administrative costs. In an industry that is technically advanced, 50% of healthcare provider payments are still made using paper checks and USPS”. Source

On June 6, 2017, RJD Green announced via a press release that its commercial contracts have been awarded to Silex Holdings for the year 2018. As a part of the recent construction trends for its region, RJD Green Inc. informed that it is awarding three commercial contracts worth $234,000 for the natural stone countertops. The project is expected to be completed by 2018. The project is in Kansas & Missouri. It will provide Silex its first projects in those states. The recent changes to the new home permits indicate an increase of 20% for the year 2017 as compared to 2016 in Oklahoma, which is Silex's primary market. The commercial projects, on the other hand, have projected increase over 12% for the year. Ron Brewer, the CEO of RJD Green Inc., stated that "the commercial contracts awarded Silex continues the progression in our commercial business segment and reflects our efforts in geographic expansion."On June 20, 2017, the press release by RJD Green announced that IOSOFT is in a discussion about the progression of its revenue from the software platforms. RJD Green Inc. informed that its beta process had been completed. As a result, the firm expects annual revenues to exceed $240,000, as IOSOFT begins beta processing with four new contracted client. As the contract between two is set to begin by August, the complete implementation of this software services will be implemented after sixty days beta test. In addition to that, IOSOFT has additional monthly contracts, which is set to accelerate its quantity per month. Once these contracts with initial clients are fully implemented, the projected revenues would be around $1,100,000 per year.What happened in July 2017?On July 24, 2017, the company put out its earnings for the period ended on May 31, 2017. As it was said in the previous announcements made by the company, the amount of revenues reported were strong.Source: 10-QThe company needs to work on the amount of expenses incurred. Consulting fees should be reduced to increase the net income. However, if we look only at the revenue line, it is proven fact that the product is successful. The market is using this fact to justify the increase in the share price.NOL carryforwardsAn interesting asset, which was pointed out in the 10-Q, is the NOL carryforwards. This is what the company says about it:

"As at August 31, 2016, the Company has $357,846 of NOL carryforwards expiring during various years up to 2034." Source

What does it mean? It means that the company had losses in the past and they have been accumulated. They can be used now to reduce the amount of taxes due. This is interesting, as if the company reports positive net income in the near future, the taxes paid will be zero. In addition, this is also interesting for a bigger company interested in acquiring RJDG and willing to reduce the amount of taxes paid.Small FloatWe obtained the following information from the exchange:

• Market Value as of July 28, 2017: $2,782,029
• Authorized Shares: 750,000,000
• Outstanding Shares: 209,175,119
• Float as of July 1, 2017: 84,832,488

What did you notice? The float, which is the amount of shares owned by the public, is very small. This means that the share price will tend to show a large amount of volatility. As we know that some market participants seek these type of stocks, we noted it here.ConclusionThere is a lot to like in RJDG. First of all, the company is delivering a successful and profitable product. We could see it in the last quarterly report. Additionally, the company's balance sheet shows a large amount of NOL carryforwards that will be sued to pay less taxes and may interest potential acquirers. Finally, the float is quite small, which is making the share price quite volatile. To sum up, this is a stock to follow closely, not only because it is reporting good news, but also because of its low float.We will be updating our subscribers as soon as we know more. For the latest updates on RJDG, sign up below!Image courtesy of Monica Mongelli via FlickrDisclosure: We have no position in RJDG and have not been compensated for this article.