QIS Update #10 2013 - May 24th 2013
Included in this update:
- NTG Clarity Networks secures US$1.1 million contract
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We are now in earnings season for many TSX-Venture companies which are reporting Q1 numbers prior to the end of May. QIS Capital is expecting NTG Clarity (NCI) numbers next week along with Virtutone Networks (VCI) numbers later in the week. NTG Clarity’s last three quarters have been solid with net income of just under $0.03 per share during the 9 months. The company is currently trading at just 2X income. The Virtutone Q4 numbers will complete a challenging year as the company transitioned to its new wholesale business. The good news is that shareholders have lots to look forward to as the company has announced revenues of over $3.0 million in the last 2 months and should be reporting May revenues in early June. Virtutone is on pace for annual revenues of over $20 million for this coming year, compared to about $3 million in the prior fiscal years.
Overall the stock markets have been a story of two completely different directions. The DOW chart is almost straight up with an impressive year-to-date gain of 17%. The Canadian TSX Exchange has returned a modest 2% in 2013 while the TSX-V has been almost straight down with a staggering year-to-date loss of 22%. Despite the terrible stock performance of many micro-cap companies, we are seeing our personal portfolios rising slowly but steadily as investors turn back from speculation toward value. Good luck investing everyone!
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NTG Clarity Networks Inc. (NCI:TSX-V)
Current Price: $0.06 (coverage commenced Feb. 4/10 - $0.045)
NTG Clarity Networks Inc. has announced that the company received a Letter of Intent from a leading mobile operator in the Gulf region to upgrade the NTS Telecom in a Box and implement the NTS Promotional Module and the purchase of associated licenses. The contract value is approximately US$1.1 million. This project is expected to be completed in 4 to 6 months.
We are very pleased with the award of this project as it reflects the increasing satisfaction and confidence of our customer in our products and their functionality, said Ashraf Zaghloul, NTG Clarity's Chairman & CEO.
NTG Clarity has been steadily announcing new contracts and should have at least $5 million in work for this fiscal year plus any new contracts that are announced going forward. That should continue to provide the company with solid revenue and earnings growth as we have seen over the past 3 quarters. NTG Clarity should be announcing its first quarter financials next week.
Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 764,000 shares of NTG Clarity Networks Inc. and 931,000 shares of Virtutone Networks Inc. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2013 QIS Capital Corporation.