On March 16, Singlepoint, Inc. (OTCMKTS: SING) completed the acquisition of Direct Solar. The company expects to leverage the Rocket Mortgage/Lending Tree model championed by Direct Solar to ramp up revenues and, more importantly, to grow its reach in the solar industry both in the US and globally.
Singlepoint Share price analysis
The US solar industry is on an upward trajectory. For over 40 years, the country witnessed a slow adoption of renewable energy where only 1 million installations were completed. In the last three years, the number of installations shot to 2 million and are still climbing exponentially. The Solar Energy Industries Association (SEIA) noted that this number could double by 2024, sentiments which are shared by Wood Mackenzie Power & Renewables.Solar stocks, among them SING, are responding to the positive shift in the solar industry. As the significance of solar energy in industries such as Auto and Cannabis increases, demand for the installations is growing. Specifically for Singlepoint, the company is likely to make huge waves in the industry given the impressive financials by Direct Solar.Over the past year, Direct Solar has tracked that overall growth of the solar industry. To put that in perspective, the solar installations in the US expanded 4% from Q4 2017 to Q4 2018. Compared to Q3 2018, the growth was 139%. Industry insiders attribute the tremendous adoption of solar energy to the reduced costs for installation and environmental awareness among the general public.Already, the SING stock is reacting to the great news. The share price is slowly clawing back some of the value it lost since late June 2018. To be sure, the stock closed on Friday, May 10 at $0.0127 which is 6.7% above the all-time low value the stock attained on December 31, 2018. By Thursday, May 16, the stock was trading at $0.0145, a +14.2% change since the close on May 10. Clearly, the stock might just pop as the company begins to consolidate its business going forward. SING Daily Chart
About Singlepoint, Inc.
Singlepoint has continuously curved a niche as an early adopter and accelerator with interests in technology and the cannabis industry. Notably, the holding company injects capital in companies which have the potential to earn a significant income. Oftentimes, the company targets subsidiaries which are cash-flow positive but are undervalued and it helps them get to their fair value.The company has built a diversified portfolio ranging from ancillary cannabis services and mobile payments to blockchain solutions. Obviously, it is apparent that the company has an interest in not only nascent subsidiaries but nascent industries which have high potential. Overall, the core interest of the company is to enter deals which are dually beneficial in the long run.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0&t=7s[/embed]
Investments and acquisitions
The single most important acquisition Singlepoint has made so far is the netting of Direct Solar. Like earlier discussed, Direct Solar is a technology company which has a solid business model. This is evidenced by the significance SING has placed on the new acquisition. Particularly, the company said that the acquisition is expected to induce a revenue growth in the next 12 months to the tune of $5 million. Further significance of Direct Solar is unmistakable in the comments by Greg Lambrecht, the CEO of Singlepoint when he said:
“This acquisition will securely place Singlepoint on a new path towards growth, revenue and overall profitability. We believe Direct Solar has the people and the ability to scale beyond initial projections and truly make an impact on Singlepoint's goal of getting a NASDAQ or NYSE.”
New product launch
In mid-March, a SING subsidiary with interests in the technology sector launched a mobile application which serves the Automotive Glass Market. At the core of the subsidiary’s business model is the desire to disrupt the industry which Singlepoint estimated at $12 billion. Notably, the product, ShieldSaver, is a kind of sales aggregator a la Airbnb which connects Automotive Glass Market’s supply side and demand side in the most seamless manner.The subsidiary has solid operations in California, Colorado, and Arizona it plans to expand into other markets. Already, the mobile application is turning heads in the industry and Singlepoint believes the revenue opportunity is massive.
New distribution programs in the cannabis sector
Singlepoint is on the forefront to leverage the massive growth of the cannabis market. Early May, the company unveiled a strategic plan for distributing cannabis products. Dubbed “Strategics”, the program is a partnership with a company which has deep reaches into the national cannabis distribution chain. Through Strategics, the company hopes to be able to supply products to regional convenience stores.Further, SING intends to continue seeking out partners who are fast-growing and innovative to form an unparalleled distribution chain. Ultimately, Strategics will grow the market share for SING as well as create a massive revenue stream.
Conclusion
Obviously, SING stock has underperformed for a long time but all signs point towards a huge takeoff. Looking at the recent developments undertaken by the company, growth on astronomic proportions is within reach. As such, investors should brace for an impressive bull run as the current strategy unfolds.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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