Service Team Inc (SVTE)

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This is piece from insiderfinancial.com



ByJarrod WessonPosted on November 27, 2017 SHARE TWEET SHARE EMAIL COMMENTS
Today, we are going to talk once again about Service Team Inc (OTCMKTS:SVTE), which is focused on the manufacturing, maintenance, and repair of truck bodies.

Company Logo from http://www.serviceteaminc.net
Company Logo from http://www.serviceteaminc.net

The amount of shares that changed hands recently is astonishing.

Have a look at it:

One year stock chart for Service Team Inc OTCMKTS:SVTE
1 year chart for Service Team Inc OTCMKTS:SVTE

What’s going on?

Different good announcements were made since our previous piece was released regarding this company. We believe that the most interesting is the 10% stake communicated by TANGIERS INVESTMENT GROUP, LLC, which may explain the recent large stock volume.

But, there is more.

The company released the important information regarding last two quarters, which seem to have interested market participants as well.

We will assess all these new announcements in this new piece. But, first of all let’s revisit the business model of SVTE. The company “manufactures commercial truck bodies primarily for transporting frozen or refrigerated food products.”

It is headquartered in California and was founded in 2011.

Recent Developments

On July 10, 2017, TANGIERS INVESTMENT GROUP, LLC, the market participant, noted that it had acquired a stake equal to 10% of the total outstanding shares of the company.

9.99% stake in Service Team Inc OTCMKTS:SVTE
9.99% stake in Service Team Inc OTCMKTS:SVTE

This stake may have created expectations in the market. In addition, it may be creating an increase in demand for the stock. You know how this works; some people buy big stakes and other market participants follow the same path and buy more shares. This could explain the large amount of shares that changed hands recently.

What is the interest of this market participant?

We could read the following from the filing:

“By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.” Source

We can conclude two things from this text. First of all, the market participants do not want to change the management. We believe that they are happy with their work.

Additionally, it means that TANGIERS INVESTMENT GROUP, LLC, is buying because it believes that the company is an interesting investment.

The new financial figures released.

On July 14, 2016, the new financial statements exhibited that the company was doing really well. It returned positive net income for this quarter, while it was negative in 2016.

How did they achieve these results?

The company seems to be reducing General & Administrative Expenses, which we appreciate. Have a look at the income statement:

Quarterly Report from Service Team Inc OTCMKTS:SVTE
Quarterly Report from Service Team Inc OTCMKTS:SVTE

But, that’s not all.

On November 20, 2017, the company released new financial statements for fiscal year ending August 31, 2017, which made the market react.

The sales reported went up to $3,673,622 for the fiscal year ending August 31, 2017. In 2016, the sales reported were lower; $3,030,734. Thus, the company reported 21% increase in sales, which shows that the company is growing at an outstanding pace.

Additionally, many corporate changes were noted. SVTE seems to be transforming itself. It was released that the company had been approved by the Depository Trust Corporation to use the DWAC computerized stock certificate issuance. In our opinion, it will help the company obtain more financing. It is a great news. Finally, Federal Investment Regulatory Agency (FINRA) approved the company’s requested change of domicile from Nevada to Wyoming.

There is more.

For those who appreciate studying quarterly reports, the company released in the same press release that it had a “backlog of orders for more than two months’ production.” Thus, we believe that the next financial statements will show an increase in the account receivables as well as an increase in revenues.