Today, we need to talk again about Singlepoint Inc (OTCMKTS:SING), as it has recently released a Letter of Intent with a Denver based company and has completed the acquisition of Dr. FeelGood. Additionally, we have seen an increase in social media activity that we will note in this article. This new activity seems to be pushing up the share price and bringing in new investors.
Our readers will be remembering well that we noted in our previous report that the SEC had halted a competitor of the company named FIRST BITCOIN CAP COM NPV (OTCMKTS:BITCF). We said that same could happen with SING, thus we encouraged readers to be careful on this name. Well, in this new piece, we need to note that if the SEC did not halt SING so far, it is not likely that they will do it now.
Let’s revisit the company’s business model for those getting to know the company now. SING provides full-service mobile technology. Additionally, it acquires interests in undervalued subsidiaries that provide products and services to the cannabis industry.
On September 6, 2017, the company announced the acquisition of Dr. FeelGood, headquartered in Phoenix, Arizona, that distributes cannabis products. As per the press release, SinglePoint will acquire 51% of the company and will be able to consolidate the company’s revenues.
Dr. FeelGood represents the third acquisition of the year for the company. We believe that it is very good news, as the company is really growing at high pace not only through new software development but also through M&A.
It seems that SING will help the target business develop a new app. For those who appreciate checking the revenues in the next quarterly report, the app will be ready in the next 90 days. On the top of it, it was noted that the software will be licensed to other distribution companies all over the United States, which will represent significant increase in revenues.
How is the cannabis industry evolving?
We could read in the press release that the cannabis sector continues to grow. According to the Cannabist (2016), the market will be worth over $20 billion by 2025, which is two times what it is now. Additionally, the legal cannabis market enjoys a compound annual growth of 29%. If this is the first time that you are reading about this enormous rate of return, we encourage you to read other articles on this website, wherein we discussed about other key players in the industry. The sector is seen by many analysts as the new gold rush, so you need to read about this,
Additionally, on September 26, 2017, the company again noted that it may acquire another business. A Letter of Intent was announced to acquire a Denver, Colorado-based company, that is approaching $1 million in annual revenue. As it happened in the previous acquisition assessed in the article, the company will acquire 51% to be able to report the revenues on the company’s financials.
We believe that the following needs to be noted; it is information from the press release, but it is exactly what we think and have described before. The company is growing the top of the P&L through a smart M&A strategy:
“Year-to-date SinglePoint has acquired or invested in three companies resulting in revenue growth and solidifying the Company’s revenue-by-acquisition model. This agreement is yet another demonstration of SinglePoint’s ability to strategically grow its portfolio of investments in established, high-potential companies.” Source
Finally, we need to note that the negotiations may close in the coming weeks, so be alert! If the company closes the deal, the share price could run up the charts.
Social Media activity
We could find a large amount of comments about the company on the iHub Forum, 1,653 reactions on the Yahoo Finance website, as well as other materials on big websites. Have a look:
We believe that the communication team of SING is doing a very good job. This may not affect the share price automatically, but it creates brand awareness, which is good for the business. Again, we appreciate these efforts.
Currently trading with a market cap of $54 million, SING is an exciting story among small caps. With $0.28 million in cash, $0.8 million in total assets, only $0.3 million in total liabilities and with no long term debt, the company has financial stability. Additionally, we believe that the new acquisitions and the growth reported are seducing the market, which is pushing up the share price. As we said at other occasions, check the new announcements and new acquisitions, as it is what’s driving share price volatility here.
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Image courtesy of drollgirl via Flickr
Disclosure: We have no position in SING and have not been compensated for this article.