Low Float OPTI.Only 4 Million Shares in the float.
Full disclosure: I personally own OPTI purchasing prices ranging from .08 cents to $.70 per share over the last 60 days. I was introduced to this situation by investor friends that own it as high as $1.25
Overview of Stock Structure and Activity
Having said that this is a compelling story unfolding which in my estimation is virtually unknown. Currently the O/S is approx. 10m shares as it was reduced from 18m approx. just recently the company retired treasury stock.
My understanding the float is about 4m which from what I can ascertain is likely the lowest that I've see in quite some time for stocks that trade at these low levels.
Here is the information which I gathered after my own due diligence going through the filings and press releases:
The average price in 2018 was $5.00 per share and hit as high as $10 per share. Please keep in mind that when Rob Goldman (not Goldman Sachs) wrote up his report in December of 2018 the stock was trading at $2.50 per share just 90 short days ago. Mr Goldman put a $5.50 projection on the stocked believes 2019 revenues to be $4m and going forward in 2020 14m in revenues is his projection.
Goldman Press Release and Research Report By Rob Goldman.
Note: This is Not Goldman Sachs https://finance.yahoo.com/news/optec-international-rated-speculative-buy-143000645.html
Since this report the stock has been devastated down approx 80% and it appears as if the stock is going to a penny or even lower. I personally don't believe thats the case here with OPTI.
If you read the filings you will see that the company did in fact engage in toxic note financing. The company wrote approx 1.5m in notes for the year in efforts to finance their licensing agreements.
In December the company made a comment in a press release that the reason for the massive drop is because they feel their stock has been naked shorted which kind of makes sense. If you look at the Note cycle in December thru Feb you will see approx 500k hit in notes so it's very conceivable what took place here.
Press Release on recent Stock Activity https://finance.yahoo.com/news/optec-international-recent-stock-activity-185200593.html
Noteholders were shorting to reduce their VWAP which is done often by noteholders. It’s very rare to find a friendly note holder at least that’s not my experience. Note holders can be ruthless and generally poison.
So here is a major development which could change the landscape for the next 6 months.
Company Solution to stabilize stock
Read this press release on Feb 27th that the company issued a 12g/15 which is basically saying the 144 stock (typically 6 months for converts. Noteholders) which is 6 months is now 1 year. https://finance.yahoo.com/news/optec-international-announces-voluntary-filing-185600033.html
This IMHO this is a big sea change at OPTI. Why is this so big? It's stops the supply of Toxic Notes from hitting and enables the company to focus on their core businesses... I believe this was a brilliant move by management or else very candidly the stock could have been pummeled to 0001.
Optic International OPTI Products
So far since this event the stock seems to have stabilized. Now let’s talk about the company’s products and business model. An in the interim if and when they start putting out revenues, they will be able to strike a deal with the note holders who likely are upset over waiting an additional 6 months to get their money.
All-Terrain Tri-Wheel OPTEC ZUUMER Scooters for EMT & Law Enforcement
Recently the company had a show in Baltimore Maryland for 3 days with their product line. I believe that show was showcase their 3-wheel scooter which is all going green. The scooters are used by the S.D. police dept, S.D. fire dept, and E.M.T's as well. They are deemed the safest and state of the art. They can get thru most cities and ant terrain whatsoever.
Product page- Zuumer Tri Wheel Scooter https://optecmpg.com/zuumer/
After I looked at the videos of this scooters, I was very impressed with the product.
Detailed Zuumer Scooter Presentation https://documentcloud.adobe.com/link/track?uri=urn%3Aaaid%3Ascds%3AUS%3Adf1a0582-720b-4b00-bd39-eb5660169051
February 11, 2019 Press Release: introducing Tri Wheel Rapid Response Scooter https://finance.yahoo.com/news/optec-international-introduces-2019-electric-123000825.html
February 21, 2019 Press Release national EMS Today Expo https://finance.yahoo.com/news/optec-international-introduces-terrain-rapid-192000209.html
Note: The EMS Expo I believe is a great forum for the company to showcase
their product to hundreds or maybe thousands of prospective customers.
“Pro Sun” Horticultural LED Grow Lamps
The company recently introduced their LED product for the 5-6 billion Cannabis growing industry. According to the company press release “LED lights have become more popular among growers as a way of reducing cost.” “The Pro-Sun Passive cooling system reduces the power use for growers in excess of 30% compared to traditional HPS and Metal Halide bulbs” “The Pro-Sun has demonstrated grow time reduction for the plant to reach full maturity of over two weeks per crop cycle. This is not just only for cannabis, but the entire horticulture industry”.
Detailed Product page “Pro Sun”LED Grow Lamps
Detailed Product page Horticultural LED Lamps
Full Press Release Pro Sun” Horticultural LED Grow Lamps https://finance.yahoo.com/news/optec-international-signs-exclusive-north-130000643.html
More Company findings after due diligence on Filings and financials
There are 2 divisions in OPTI: the private domain IP which is 65% manufacturing/assembly and the Sales side the public entity OPTI which is comprised of 35% admin.
The company is located in Carlsbad, CA. and has a 21 sq.ft warehouse facility
Looking at the financials the CEO takes a modest salary on the public entity and the burn rate is less than 25k per month on the public side. On the sales and financial side reading the filings Sales are less than impressive but going forward I believe that will change in a very positive direction. I think they have very competitive high-quality products that should reap in many new orders and drive up sales. My personal opinion of course.
Sum it up
Since recently acquiring licenses for what I believe are great quality products in currently hot industries it seems the company has great potential IMHO (In My Honest Opinion) to becoming a revenue driven company on its way to probability. According to the Goldman report the company has no COGS which widens the profit margin. With approximately 10 million shares outstanding and the stock trading at approximately .35 cents which is currently a 3.5-million-dollar market cap and a float of ONLY about 4 million shares I think Opti has great upside potential.
I don’t have a crystal ball and can’t predict whether the stock will go up or down over the near-term. With OPTI does comes the risk whether Management can execute successfully on their business model. I believe they can. This is a speculative risk situation so proceed with that in mind like any penny stock.