On4 Communications Inc (OTCMKTS:ONCI) has been on a monumental run. ONCI caught fire in early August as the company continues to pile up agreements with auto dealerships. Volume and liquidity continue to expand, making this a favorite among penny traders. The company further solidified that status on Wednesday when it announced it has expanded its sales force from 4 to 20. “We have hired 16 salespeople to sell our entire portfolio of products.” According to the release, these sales people will be in 24 states and their compensation will be 100% commission based.
“We are also pleased to announce that we have hired FLY Communications Inc of New York City to handle our advertising, design and digital media needs going forward. FLY specializes in digital advertising, SEO and Design and their addition as a strategic partner frees up more of my time to expand and grow the business,” states CEO Steve Berman.
On4 Communications Inc (OTCMKTS:ONCI) frames itself as a company that seeks to acquire and/or merge with businesses that present new opportunities and innovative business plans, especially with respect to new technologies.
The Company owns a 49% equity/ownership stake in Family Mobil Safety Marketing, the distributor of a safe driving App and a 49% equity/ownership stake in Digital Media Management & Consulting, a joint venture which implements electronic sell-through and content advertising supported networks.
According to company materials, “On4 is a holdings company with an aggressive focus of acquiring proven and profitable businesses. Our first project is focusing on businesses operating in the $1.7 trillion U.S. healthcare industry. Our newest targeted businesses are operating in the trillion-dollar mobile App space. Our first acquisition in the mobile App space is FMS Marketing a global creator and distributor of mobile Apps for Android and iPhones. We are also targeting businesses to acquire and joint venture with in the medical marijuana and emerging MJ ancillary products space.”
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As noted above, ONCI has been one of the most dramatic success stories of the second of 2017 thus far. And it all seems to come down to a successful execution on the sales and marketing side. Now, management is beginning to expand headcount and we will have the chance to see whether or not that model is transferable and scalable – which is one of the most important questions investors can ask of any early-stage growth organization.
“We are also pleased to announce that we have hired Eric Ritter to be SVP sales of On4 Communications. Eric has in depth knowledge in the Auto Dealer Network, property casualty and F&I insurance industry. Eric will be moving to Florida to handle the oversight of all southeast and west coast business for On4 Communications. Eric is an industry veteran having worked for Zurich Insurance and Marsh USA in the auto dealer division.”
“On4 also announces a contract with a 5 dealer group in NY with Brands including Nissan, Jeep and Volvo. These dealers will be taking 20 units per month @ $200 per unit or $20,000 per month and $240,000 per year.”
“Updates on just completed European trip and preferred share reduction later this week,” Berman concludes.
The chart shows approaching 370% added to share values of the stock over the past month of action. This is emblematic of the stock. ONCI has a history of dramatic rallies. What’s more, the name has seen interest climb, with an increase in recent trading volume of 77% beyond what we have been seeing over the larger time frame.
Currently trading at a market capitalization of $5.71M, ONCI has virtually no cash reported on the books, which stands against about $532K in total current liabilities. ONCI is pulling in trailing 12-month revenues of $363K. In addition, the company is seeing recent top line growth, with sequential quarterly revenues growing at 454.5%. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $ONCI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: We hold no position in $ONCI, either long or short, and we have not been compensated for this article.