Do you remember our last article on Singlepoint Inc (OTCMKTS:SING)?
We said that the acquisitions of Denver-based group, JAG, and the Letter of Intent of AppSwarm Inc. (OTCMKTS:SWRM) were going to be very beneficial for the stock. Both were going to contribute to the growth of the company.
We are glad to see now that we were not wrong.
The article was published on November 7, 2017 and the share price took off in just twenty days. From trading close to $0.07, the share price spiked in a few sessions to touch the level of $0.11. Our readers, who could read our report and followed the company’s announcements, should have appreciated our coverage.
Have a look at the following stock chart and remember to note the large amount of volume seen in the exchange.
Some days more than 50 million shares changed hands, which, in our opinion, shows that the market interest in the stock is increasing.
For those who don’t know SING, it commenced as a full-service mobile technology provider and has become a public holding company building a portfolio of “undervalued subsidiaries, thereby providing a rich, diversified holding base.” The most exciting about this company is its presence in the cannabis sector.
After our article got published, the company released a long list of announcements, which are the main reason for the rally.
On November 15, 2017, the company released that it had launched a bitcoin exchange with the intention to solve payment issues in the cannabis industry. The company noted that the number of business opportunities in this sector is very large, since risk in the transactions is very high. We agree with SING in this matter, but it will need to show that its software helps users.
What is the company offering?
It seems that the company has contacted many partners to develop its exchange. It was said that the new solution can be used “by any business from convenience stores to dispensaries in the 29 legal states and District of Columbia.” That’s a good start.
The company noted that market participants interested in the new technology can visit app.singleseed.com.
According to the press release, the solution is designed to focus on one thing; convenience. Read the following text, which explains how easy it is to make transactions with this new system:
“Through an easy-to-use sign up form and ID verification, customers will be able to set up their account online beforehand or will be able to sign up within seconds directly at the point of sale.” Source
We believe that if the platform becomes well know, the revenues received by the company can be incredible since the cannabis industry is growing at a large pace. According to Grand View Research, this sector is expected to reach $55.8 billion by 2025. If the company is able to grow at the same pace, the market participants will see significant increase in the share price.
On November 17, 2017, we could see again how the company is little by little becoming well known.
CannabisNewsWire, a financial news and publishing company, released an editorial featuring SING. The publication was called “Meteoric Rise of Bitcoin, Open Embracing of Blockchain by Sector Majors”, which discussed how bitcoin price is increasing recently and how public companies are using the cryptocurrency.
We appreciate the announcement, as it shows that company is working on public awareness, which usually pays off in the long term. We need to mention, regarding these matters, the presence of the CEO Greg Lambrecht on MoneyTV in November and December 2017. You know how this works; the market participants and other company holders were able to see the talk about the business. It is good and necessary to go to TV shows even if there is nothing else new about the company.
What did create the share price spike?
We appreciate the previous news, but the fact is that the market did not really move after they hit the tape.
We needed to wait a little longer to see market participants reacting.
On November 29, 2017, AppSwarm, Inc. (OTC:SWRM) and SING completed their development plans. Both are working on a shared roll-out of mobile applications intended to solve issues in the cannabis space using the Blockchain technology and Bitcoin payment options. It was noted that SING provides the technology and know-how and will market the software, while AppSwarm will be running the technical support and application development. The companies are said to have agreed on a 50/50 revenue share.
The companies did not note the operating synergies that can be created thanks to this venture. But, in our opinion, this is what market participants were thinking when the share price was pushed up.
SinglePoint CEO, Greg Lambrecht, was quoted:
“We are excited to be working with AppSwarm on our proposed solutions. What they have shown us they have in-house supports what we are looking to roll out into the industry. We will work with what they have and continue to build new applications to add value. This is really a win-win partnership for both teams as they have great technology and we have capital to roll out a national campaign to quickly start driving positive revenue for both companies.” Source
But, that was not all.
On December 5, 2017, the company noted a new joint venture relationship with Smart Cannabis Corporation (OTC:SCNA). SING was said to license and market Smart Cannabis’ SMART APP, which is an application used by cultivators to run and control operations from the smart phone. We believe that the news excited the market participants even more. We agree with the market reaction.
The new app is said to be introducing the new Internet of Things technologies to greenhouses. The app is able to measure nutrient levels in soil to watering cycles, to parts per million of carbon dioxide in the air.
What will be the role of SING?
The company will help Smart Cannabis Corp. integrate the SinglePoint’s bitcoin payment solution, which will help cultivators collect payments easily.
Financials and Conclusion
Currently trading with a market cap of $111 million, SING is an exciting story among small caps. We continue to see that the company has a strong financial position. In the last quarterly report, we saw how the cash standing in the balance sheet increased along with the total amount of assets.
To sum up, we believe that this is a company that we need to follow closely.
We will be updating our subscribers as soon as we know more. For the latest updates on SING, sign up below!
Image courtesy of Veronica Foale via Flickr
Disclosure: We have no position in SING and have not been compensated for this article.