The prospect of SinglePoint Inc (OTCMKTS:SING) doubling its revenues in 2019 could explain why the stock has started bottoming out from all-time lows. A spike in share price, as well as turnover in traded shares in the market, also comes on the announcement that the company is poised to acquire Direct Solar and AI Live Transfers.
Share Price Analysis
Revenue growth will continue in 2019 upon the integration of Direct Solar operations. The two companies that SinglePoint is acquiring will provide a Lending Tree Model for solar business.The stock’s sentiments have also inched higher on the company announcing plans to raise $12 million as it looks to strengthen its balance sheet. The company has since confirmed plans to use the capital injection to acquire new companies as part of its organic growth strategy.The formation of a bullish divergence from all-time lows could as well be in response to recent developments that appear to affirm the company’s growth prospects. After the recent spike, the stock needs to rise and stabilize above the $0.03 level. SING Daily ChartAbove the psychological level, the stock would stand a higher chance of making a run for the $0.06 mark, seen as a critical resistance level. A rally-followed by a close above the $0.06 level should affirm the emerging uptrend setting the stage for the sock to make a run for 52-week highs of $0.071. Below the $0.03 mark, short sellers remain in control and could continue to push the stock lower.
About SinglePoint
SinglePoint casts itself as a technology and investment company focused on the acquisition of companies in dire need of capital injection to accelerate growth. Its portfolio includes companies with operations on mobile payments space as well as ancillary cannabis services and blockchain solutions.
Acquisition Drive
SinglePoint is an emerging break out play, as 2019 is slowly turning out to be an inflection year. The company is fresh from signing an asset purchase agreement for the acquisition of Direct Solar and AI Live Transfers.Direct Solar is an excellent addition to SinglePoint operations given that it has been growing at an impressive rate, depicted by revenues of $1.5 million in February alone. Upon integration, the new subsidiary looks set to generate revenues of $8.2 million for the full year, in keeping up with the robust revenue growth trend.
“SinglePoint plans to start recognition of these revenues around the end of April. “This is a phenomenal opportunity for SinglePoint. This changes the entire financial fundamentals for the company and enables us to continue to push forward with opportunities to continue increasing shareholder value and the overall value of SinglePoint,” said Will Ralston, President, SinglePoint Inc.
Direct Solar acquisition is also poised to expand SinglePoint footprint into the Solar Panel Market that generated revenues of $30.8 billion in 2016 and poised to reach highs of $57.3 billion by 2022.
$12.3 Million Capital Raise
In addition, SinglePoint has signed a letter of intent that paves the way for it to raise up to $12 million in capital. The new financing comes on favorable terms and will only be available on the company’s discretion. According to the Chief Executive Officer, Greg Lambrecht, the new credit line provides the company the much-needed finances for completing acquisitions.
“The goal for SinglePoint is to raise capital at the best terms we can in order to capitalize on the host of opportunities we have in the hemp-derived CBD space. We are already filling multiple orders and will be able to expand our sales and marketing as well as receive the best pricing from our suppliers with larger purchase orders,” said Mr. Lambrecht.
What Next For SinglePoint
SinglePoint tumbled to all-time lows in 2018 on investors reacting to a gloomy outlook. Fast forward things have changed and the company has affirmed its long-term prospects. The acquisition of Direct Solar is a major development that strengthens the company’s revenue base, key to long-term shareholder value.The company has also confirmed plans to pursue acquisitions in 2019 as it looks to reinvigorate its growth prospects. The stock bottoming out from all-time lows does not come as a surprise given the improved outlook for 2019. SinglePoint Inc should continue to edge higher in line with the bullish momentum in the industry as well as the improved outlook.We will be updating our subscribers as soon as we know more. For the latest updates on SING, sign up below!Disclosure: We have no position in SING and have not been compensated for this article.
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