OTCMARKETS... RXMD NEWS - PROFILE - FILINGS: http://www.otcmarkets.com/stock/RJDG/news http://www.otcmarkets.com/stock/RJDG/profile http://www.otcmarkets.com/stock/RJDG/filings CEO INTERVIEW https://www.youtube.com/watch?v=O6wCvOJ7BIA RJDG WEBSITE http://www.rjdgreen.com/holdings/ 3 Subsidiaries: IoSOFT http://www.iosoftinc.com Silex Holdings http://www.silexinteriors.com
Earthlinc Environmental Solutions
Sales & Partnership Agreements with A & G Healthcare as well as D.R. Horton
IoSOFT projects $30-$50m Annually from a Trillion $ Market, Expect More, A & G Healthcare deal calls for more than $30,000,000 Annually.
Silex is being expanded to 12 Brick and mortar locations in 2017 and modelled after Lumber Liquidators whom generate $1 Billion annually and trade at $18 on the NYSE. Sales/Partnership Agreement with DR Horton whom generates $11 Billion annually and trades at $32 on the NYSE.
Earthlinc Environmental Solutions expects to generate $20,000,000 by year two.
Share Structure is tantalizing @ 176m Outstanding and last known float of 36m.
Dave O'Malley owns 11m Restricted, Silex owns 129m restricted. The Math works. 2016 Numbers using round figures
$1.2m Assets vs $1m Liabilities
$4m Revenues with $800,000 Net Profits
$800,000 Cash 2017 Projected numbers rounded off
$11m Revenues with $5.5m Net Profits...
Expect those numbers to be a lot higher with the $400k unexpected contract and the A&G HEALTHCARE announcement.
Potential PPS using Projected $5.5m Profits equates to $0.625 PPS using a P/E of 20
Hypothetically speaking, $10m Profits using 20 P/E equates to $1.136 PPS... Management Team is SOLID
RJD Green’s team of experienced professionals is central to the ongoing success of the company in building appropriate investment and enterprise that create long-term investment returns and wealth building. Our management team is governed by our Corporate Officers, who in turn are accountable to The Board of Directors, who represent diverse experience in corporate and entrepreneurial enterprise across a broad sector of businesses.
– Chief Executive Officer – Chief Operating Officer / Board Director
Mr. Brewer has served as Managing Director of Southbridge Advisory Group since 1990. Southbridge is a boutique management firm with a primary focus in management services and merger / acquisition representation. Ron has experience in a broad spectrum of business disciplines in both public and private sectors; they include: manufacturing & distribution, health services, energy, environmental, technology driven products, real estate, marketing and non- profit entities.
Management services performed by Southbridge are typically company turnaround or growth, and post-acquisition implementations. These services have been performed in both the private and small cap public sector. In turnaround situations Southbridge brings needed changes and implementations into an organization assisting them in meeting defined improvement targets. In growth or post acquisition environments the Company will implement systems and staff, creating an operating unit that meets defined benchmarks of performance. A specialty focus is consolidation of companies, in a synergistic market niche, where Southbridge services utilized include M & A, capital advisory, and management implementation.
Prior to 1990 Mr. Brewer served as President of Mid-Continent Companies, which was a multiple division enterprise that grew ten-fold from 1980 through 1990 within acquisitions, start-ups, and growth of existing revenue streams.
Ron has served as a corporate officer in both public and private companies. He has created and facilitated all steps in formation of emerging public companies to include; merger & acquisition, capital procurement, public formation, and management implementation. Southbridge engages annually in public company formation projects. Mr. Brewer and Southbridge have performed services in the environmental arena since 1992, and has ongoing experience in the energy and construction / retail sectors.
Mr. Brewer has experience within all of the current enterprise focuses. He provided management and guidance to five environmental services and technology companies that utilized his services to successfully complete emerging growth and management systems for continuum of success. He has assisted four separate energy companies with their development and growth. His services have been utilized for emerging growth guidance in five separate healthcare sectors.
Ron will be directly responsible for the overview management of the environmental and contracting divisions, and the corporate overview management of all divisions.
– Chief Financial Officer / Board Director
John’s extensive and diverse background in business evolved through consistent promotion and growth within fortune 500 firms including The Pillsbury Company and PepsiCo, in addition to the CPA firm of Ernst and Ernst. This experience is enhanced by a twenty year career with one of America’s most successful Entrepreneurs (Forbes 102nd wealthiest U.S.A. person in 2008) where John was directly involved with numerous acquisitions and served in executive capacities for several multi-national subsidiaries. John played a key role in assisting the growth of MEI Corporation from $20 million annual revenue to $850 million annual revenue in nine years, at which time it was acquired by PepsiCo.
Mr. Rabbitt has served in CEO/COO and CFO positions for firms ranging from $5,000,000 to $300,000,000 annual revenue. He also served as a member of PepsiCo’s Mid-West Advisory Board, and as a Director and Secretary/Treasurer of their largest canning division.
John has a proven track record in both fast–growth and turn-around environments. Previous experience includes several notable projects:
• Barker Lemar Engineering where he was responsible for the restructuring and strategic growth of the company which resulted in 327% pre-tax growth within eight months.
• Served as the corporate Executive Vice President of MEI Diversified as well as Senior Executive Vice President with direct responsibility for finance, operations and strategic planning to include mergers and acquisitions for $300,000,000 annual sales and 22,000 employees.
• Re-designed financial systems, reporting and sales / marketing for L’Anza Research International resulting in sales growth of 100% over three years while reducing cost of operation by over 20%.
• Financial management assistance, strategic planning and merger / acquisition assistance for multiple companies that include Greater Dallas Homeland Security Alliance, Zone Innovations, The Comb Group, Exit Solutions and Power Pulse Technology.
Mr. Rabbitt’s education includes a BA in Accounting and Business from Drake University, graduate work at Xavier University in Cincinnati, and PepsiCo’s Management Institute.
John will be personally responsible for the operation of the healthcare services division, and financial management of all divisions. Richard Billings
– Technology Director
Richard Billings has more than 30 years’ experience in industrial research. His first work began in field testing for automotive chemicals. He then became a researcher and formulator with Executive Laboratories. In 1979 Richard and his brother purchased a research and testing company to further their own formulae development interests. Mr. Billings has formulated over 150 industrial products. He served as president of VIP Laboratories, Inc. for ten years. He has formulated and developed numerous products for companies including Southwest Sales
Co, Diamond Chemical Company, Broco International, Industrial Lubricants, Nu-Look Chemical Co., Green Country Laboratories, Executive Laboratories and Environmental Solutions International, Inc. More than 150 formulae are now being marketed in the USA,
Australia, Germany, China, Saudi Arabia, and Canada. All of Richard’s patents are for environmental products and process.
Mr. Billings designed a Machine Coolant Reconstruction System and Emulsion Breaker, which is a system used to reconstruct water soluble coolants, aqueous parts cleaner and detergent
water. It utilizes dissolved air flotation (DAF) and an extensive polymer system. It was while working with the aqueous reconstruction equipment that he first became interested in environmental remediation concepts. This led to research that completed the development of a micro-encapsulation process used to clean up hydrocarbon contamination in soil.
Mr. Billings has numerous formulae in the detergent line. Some of these are: Industrial hard surface cleaners, solvent detergents, alkaline cleaners, non-butyl cleaners, acid detergents for trucks, truck and car wash detergents, rinse agents, disinfectants, waterless hand cleaners and lotions. Richard has formulated synthetic and semi-synthetic water soluble coolants for the machine and tool industry. He has a line of rust inhibitors and corrosion preventatives. He has developed specialty windshield wash detergents and concentrates. He developed a complete line of lubricants that have high performance ratings. These lubricants include gear lubes, motor oils, hydraulic additives and compressor oils. He has formulae for the racing industry, such as fuel additives, anti-smoke agents, friction reducing oils and transmission additives. In 1983, Mr. Billings became active in the d-limonene solvent research and developed a number of aggressive detergents and recyclable parts cleaner. Mr. Billings co-formulated a high temperature, non-melt grease that will withstand temperatures to 458 degree Fahrenheit, and is completely water proof.
Richard offers years of environmental and clean technology efforts, and holds numerous patented process and products that will be reviewed for their current market viability. He will lead our efforts in accessing technologies for validity and market penetration.
Richard will be directly responsible for review of all technologies considered by SHI and for the development of technologies utilized by SHI. Rex Washburn
– Board Director / Financial Overview
Rex offers 23 years of senior management experience with 17 of those years as Chief Executive Officer of both publicly held and private companies. Mr. Washburn is recognized as a corporate structural and turnaround specialist, and has in-depth experience in international markets.
Noteworthy accomplishments include; CEO of a public company that had profit growth for seven consecutive years, CEO of a multi-national public company turnaround doubling its size after restructure, tenure as CEO of a franchise voted Top 50 Growth Franchise for two consecutive years by Entrepreneur Magazine, development of over 20 national and international formation companies and systems.
Rex has success experience as an executive in national / international enterprise efforts in both restructuring of companies and launching growth oriented enterprise.
Rex launched his executive career serving as executive vice president of Hunt Brothers.
Rex received a BA in finance from Regis University and a MS in Economics from the University of Edinburg. Rex served in Special Operations for the US Army in military service. Jerry Niblett
– Board Director / Operational Overview
Mr. Niblett brings over 25 years of management success in oil & gas operations for both corporate and small-cap enterprise. His management expertise includes executive management in the energy sector, as well as direct management in disciplines that include; operations, maintenance, lean, emergency management, compliance, safety, environmental & hazardous materials, training, and exploration. His corporate employment includes; Dominion Energy, Texaco, Shell, Energy Transfer and Sunoco Pipeline LP where he served as a national director.
As part of a corporate turnaround team, Jerry helped structure an organizational growth from $37,000,000 EBITDA to $1,000,000,000 EBITDA in 8 years and had direct management responsibilities for annual budgets in excess of $500,000,000.
Energy sectors in which Jerry has participated include; petro-chemical refining, natural gas compression, crude oil pipeline and storage, oil & gas exploration, and business development within oil & gas products and services.
Jerry excels in creating, planning, implementing and maintaining needed or desired business divisions, and processes that enhance existing business disciplines. His vision and communication abilities are invaluable in emerging growth companies for creating initial launch stability and long-term success.
Mr. Niblett holds a B.S. degree in Total Quality Management graduating with honors. He is well credentialed in various disciplines within the energy field. Jerry is both a writer and editor within industry publications, noted operations management speaker, and is affiliated with multiple industry and civic organizations. Mr. Niblett has maintained a long term personal commitment to communitarian and societal efforts that he feels can make a difference in people’s lives both in the United States and abroad. RJD Green Advisory
J M Walker & Associates– Legal Council
Ms. Walker offers over 20 years of SEC legal practice and public company formation efforts. Additionally she brings merger & acquisition and traditional corporate law experience to the benefit of their clients. Manning Elliott LLP
Formed in 1952, The Company performs public company audit services internationally.
Paul Williams, M.D. – Board Directors Advisory
Dr. Williams has organized and led medical / humanitarian teams in numerous world disasters since 1991. From cyclones in Bangladesh, to refugee camps created for the Rwandan civil war, to hurricane ravaged Nicaragua and Honduras, to tsunami devastation in Banda Aceh, Indonesia, and earthquakes around the world.
His experience during more than twenty-five years of medical missions in 105 nations gives Paul a very unique perspective on health services, world events and human interaction both abroad and in the United States. He was the founding director of Health Care Ministries of the Assemblies of God World Missions, and founded International Healthcare both of which networks and facilitates organizations in humanitarian outreaches.
Dr. Williams’ experiences bring excellent skills in finance, management of rapid and fluid organizational growth and movement, overview vision and defining for achievement of organizational goals, and maintaining a strong moral compass of corporate activity. 1. Valuation
. First and foremost, on a valuation basis RJDG appears not just to be undervalued. It appears to be enormously undervalued. Just confirmed in the Annual report this morning is $800k in net profit on $3.8m in revenues. This is based on operations and not some sale of assets, etc.., and yet with 165m OS at a price of .008 the market cap is only around $1.3m million. That would be understandable if it has something like $10m in debt but the overall debt is only $1.2m. 2. Future Growth
. The future looks bright. The $800k is for the entire year, but $600k of it is for this most recent quarter. And it's not 'one-time only' according to the company: They are projecting over $5m in PROFIT next year.
So what's going on? According to the annual report filed today, "IoSoft Inc. was acquired in June of 2016. IoSoft is a leading edge developer of software that provides accelerated payment processing for; virtual, credit card, and checks all controlled by the provider versus the payer." They are responsible for much of this profitability and growth, according to last week's PR:
<<The dramatic increase in revenues and net operating profit is attributed primarily to the full launch of the company's IoSoft division's exciting new software platforms in the healthcare sector.>>
As I understand it, the value of accelerating the payments is very high, and accounts for this growth, and expected growth next year. On June 6, soon after the acquisition the company announced a major agreement: <<the IOSOFT Division of RJD Green Inc. has reached an agreement to provide services and technology platforms for a premier provider of technology services to the healthcare industry nationally. Contracts are scheduled to be executed in June, and services launched in July of this year.....After months of research and development, IOSOFT was chosen to provide "best in class" payment technology to more than fifty TPAs, Health Plans and insurance payers.>>. This appears to have happened.
In the 4th quarter revenues jumped from around 800k to $1.5m, and it appears to be solely due to IOSOFT, with whopping margins since the expenses only increased by $200k. This is why they are able to project 50% margins and huge profits for 2017, IMO.
3. Actual revenues and earnings
. Unlike so many that ONLY have projections, RJD Green reported actual earnings. Applying even just a low PE of 10 to the TRAILING 12 months puts the price at 795,000/165m * 10 = .048, which a 600% gain from the current price. 4. Projected revenues and earnings
. Projecting over $5m in net profit next year, on revenue over $10m. If the OS goes up to 200m this is still a .025 EPS, which at an unlikely low PE of 10 gives a stock price of .25, or a multiple of 31.25 times a price of .008. 5. Share structure
: AS 750m, OS 165m. no preferred shares outstanding. At .008 the market cap here is very small - ie around $1.2m, for a company with the revenue and net income they are reporting. The float was 37m in Feb, but of course will be higher now, having converted about 28m during the year. 6. Convertible Debt
: There is convertible debt of $302,000 in this current report. The holder only converted $75,000 last year (into 15m shares), so it appears that the rate of dilution is low. However, it matured in July, 2016 so no guarantees, but with the cash flow they now have they have the resources to pay off or restructure this debt. Cash was over $150,000. 7. Irons in the fire
Software division - high growth referenced above
Silex division - home contracting - projecting 15% growth. This historically has made up the revenues, $2.9 million last year, so should not be ignored. It was marginallly profitable too.
Earthlink Environmental Services First, there was a contract this quarter that I didn't see announced: "The IoSoft impact is complimented by the first environmental management contract by the Earthlinc Environmental division". This may be more exciting than one might think. This technology is completed already: From an earlier PR this year: <<eliminating liquid, solid, and gas waste while returning the water to usable ground water on the farm at cost similar to the handling and transporting expense of current waste disposal.>>. This could be more lucrative than some may think.
Near term Accretive Acquisitions: <<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. >> In the recent interview the CEO indicated these acquisitions are likely to happen before the end of the year, and will be significant.
CEO Experience: It is worth pointing out that our CEO has had extensive experience in helping companies get acquired. My view is that he saw great opportunity in becoming the acquirer in certain cases, where the potential is high. Here is his info on their website:
<<Mr. Brewer has served as Managing Director of Southbridge Advisory Group since 1990. Southbridge is a boutique management firm with a primary focus in management services and merger / acquisition representation. Ron has experience in a broad spectrum of business disciplines in both public and private sectors; they include: manufacturing & distribution, health services, energy, environmental, technology driven products, real estate, marketing and non- profit entities.
Management services performed by Southbridge are typically company turnaround or growth, and post-acquisition implementations. These services have been performed in both the private and small cap public sector. In turnaround situations Southbridge brings needed changes and implementations into an organization assisting them in meeting defined improvement targets. In growth or post acquisition environments the Company will implement systems and staff, creating an operating unit that meets defined benchmarks of performance. A specialty focus is consolidation of companies, in a synergistic market niche, where Southbridge services utilized include M & A, capital advisory, and management implementation.>>
. Nobody seemed to care because this was a holding company with fairly boring results to far. But now that we have a filing confirming that their acquisition strategy is starting to pay off big time, people are just starting to notice, but there is a long ways to go to get this to a fair valuation IMO.
Bottom line, while no OTC stock is risk free, there is a lot to like in RJDG, given it's valuation and - now - this stellar earnings report, along with a number of things on the horizon, not the least of which is more incredible growth in both revenues and profits. RJDG is a PROFITABLE + GROWING company that is checking off all the right boxes
Easy communication with management
NEXT TO ZERO TOXIC DEBT
Price is over 30% off the 52 week high and CLIMBING NOW IS THE ENTRY POINT
If you use a PE of just 10 (not sales in this case because profits are a larger % of REVS) this company is worth $787K/176M = .00447 *10 = .045/share
and thats not taking into account 2017 GUIDANCE!
2017 Guidance is just amazing, but I dont want to get valuations and expectations too high with the number it represents...
2-4 yrs to MAXIMIZE PROFITS MUCH DD TAKEN FROM CHEEKY + TEDPEELE OFF MAIN BOARD