Singlepoint Inc (OTCMKTS:SING) is a penny player with a wide operational definition tied broadly into the cannabis patch. SING has been on the upward march of late largely catalyzed by reports that it is picking up exposure to the blockchain space as well. The big news is the announcement of its purchase of $Weed, which is one of the newest fiat currencies floated in the booming Cryptocurrency market.
According to SING’s most recent release, “The large block purchase is from crypto industry leader, First Bitcoin Capital (OTC:BITCF). After many months of collaboration, the two companies have decided this initiative is the starting point for a much larger play in the cryptocurrency markets. Weed “Coin” is a crypto currency geared toward solving the payment problems found in the cannabis industry. The coin recently had its ICO launch resulting in an impressive yet illiquid market cap of close to $60,000,000.”
Singlepoint Inc (OTCMKTS:SING) trumpets itself as a company that provides mobile technology and marketing solutions for small to mid-size businesses, nonprofits, and religious organizations. Its solutions enable clients to conduct business transactions, accept donations, and engage in targeted communication through mobile devices.
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The company’s portfolio includes; Text2Bid, a mobile bidding solution that allows users to bid in auctions from text or Web-enabled phones; Donate by Text, a solution that allows nonprofits to securely collect donations via text; Pay by Text that allows customers to pay for products using their mobile phones; and Point of Sale terminals to provide customers the convenience of using debit/credit cards right at checkout.
SING also provides Oomy, a solution that enables companies to track and manage their fleet vehicles, drivers, and deliveries; text mobile marketing solutions; SingleSwipe that enables customers to turn any device into a point of sale payment processor with the SingleSwipe card reader; and other solutions.
According to company materials, “SING is a full-service mobile technology and marketing provider. We provide solutions that allow our clients to conduct business transactions, accept donations, and engage in targeted communication through mobile devices. Our products connect small to mid-size companies to their target markets by providing innovative mobile technology at reasonable rates. The company recognized the strength in acquiring interest in undervalued subsidiaries in other markets to create a diversified holding base.”
First off, as we dig into this story, it’s important to understand the basic point: Marijuana is still illegal at the federal level in the United States.
So, dispensaries and cannabis-related businesses – those operating lawfully under state laws – can actually still have pretty hard time accessing traditional banking services because banks are risk averse as a kind of axiomatic trait (except for 2004-2008, ahem). So, many cannabis-related businesses end up having to operate on a cash-only basis.
That creates undue risk to both the dispensary (stacks of bills lying around) and the consumer. That all opens the door for the pragmatic marriage of pot and cryptos, thus, enter SING and $Weed.
“Currently WeedCoin is already listed on three exchanges. SinglePoint and First Bitcoin Capital plan to list and market the coin on many more exchanges soon. Additional listings and marketing efforts could generate greater interest levels found in such competitors as PotCoin as part of a partnership to move towards a massive consumer first approach. The consumer first approach overcomes the traditional issues of making a payment at dispensaries using cryptocurrencies.”
The chart shows more than 130% during the past month in terms of shareholder gains in the stock, a rally that has pushed up against longer standing distributive pressure in the stock. That said, SING has a history of dramatic rallies. Moreover, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed exceeding 150% over the long run average.
Now commanding a market cap of $29.18M, SING has a chunk ($282K) of cash on the books, which compares with virtually no total current liabilities. SING is pulling in trailing 12-month revenues of $717. However, the company is seeing declines on the top line on a quarterly y/y basis. We will update the story again soon as developments transpire. For continuing coverage on shares of $SING stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $SING, either long or short, and we have not been compensated for this article.