Excellent post my friend...
LIVE IN THE NOW!
As a great musician, Garth Algar once said, “Live in the NOW”
Anyone can find weaknesses or poke holes in things that haven’t come to fruition yet but when you objectively look at ONCI, few penny stocks have as much current sales and profit as ONCI. Look at a few incredible things this company has already achieved.
Sales for the first 3 quarters of FY 2018 = $3.2 million with net income of about $1.0 million or 31% of sales. If you add back the one time LAM 3(a)(10) expenses of $725 thousand, the net income for the first 3 quarters is $1.7 million or about 53% of sales, which is incredible and unheard of...
Accounts Receivable is growing and is now at $3.7 million. That could be a bit concerning by itself; however, Cash collected during that time period equals over $1 million. How many companies trading at $.0018 collect over $1 million in cash in 3 quarters? Even more encouraging, $656 thousand of that was collected in the 3rd quarter alone. At an average sales price of $225 per unit, ONCI collected cash on about 3,000 units in the 3rd Quarter alone. To me this demonstrates strong repeat sales because the dealerships have to pay up if they want more units.
Additionally, the reason why ONCI can handle growing A/R is due to its 53% net income percentage (there are not many expenses associated with the A/R). If a company only had 10% Net Income, they would have to finance 90% of the A/R balance, whereas ONCI only has to finance 47% of the A/R balance until they collect it. This is a huge advantage!
The increased investment in Cogosense is also a great sign, paying an additional $575 thousand during the quarter from internally generated profits and additional investment by our committed CEO.
We have a CEO who is determined and committed to making this company a success, validated by the increased Due to Related Parties Account, which has grown from $106 thousand in October 2016 to now about $1.6 million at 7/31/18. Talk about putting your money where your mouth is... Most if not all of his salary and commissions go back into the company which enables us to grow and pay off debt. He has even sold some of his personal shares and put the proceeds back into the company. I think it's admirable but some have interpreted him selling shares as a lack of confidence in the company, which could not be farther from the truth.
For further proof of a great turn around, look at the shareholder's Surplus or Deficit Account. What was a deficit of $2.7 million in October 2016 is now a surplus of about $2.8 million. That is a $5.5 million increase of assets over and above liabilities in less than 2 years.
ONCI has so much potential going forward with a huge private label coming very soon and one in Turkey and another in Europe in the works. A third and final meeting with a large company in Detroit next week, a 75% stake in an upstart Craft Cannabis company, and the 6th leg with more details to follow. Yes we have great things to look forward to but I ask, with increased sales and profit every quarter including a controlled roll out of BSafe Mobile with two Fortune 500 Companies, Auto Nation and Car Max, why aren’t you investing in what we already have? Invest in the NOW!
