Signal Bay Inc (OTCMKTS:SGBY) is a penny stock that’s been powering in an uptrend as traders digest the impact of the company’s recent string of expansionary moves, including its latest announcement to acquire a cannabis testing lab in Portland Oregon. Recent action has seen the stock soar more than 570% higher in just the past month. And the situation continues to bear watching as it corrects some of that advance today on heavy volume.
SGBY is a stock who’s past is littered with sudden rips like the current move, and its access to a high growth market space makes for difficulties for those looking to fade the rally aggressively. What’s more, the listing has seen an influx in interest of late, with the stock’s recent average share volume blasting 190% above its longer term average despite the rapid increase in share prices — a critical element of sustained bullish moves.
Signal Bay Inc (OTCMKTS:SGBY) bills itself as a company that provides advisory, management, and analytical testing services to the legalized cannabis industry in the United States.
The company offers industry research; business and market intelligence; and advisory and consulting services, including license application support, regulatory compliance, market forecasts, and operational insights.
It also publishes industry information through online media, research reports, and publications; and operates CANNAiQ.com, a business to business information portal, as well as MarijuanaMath.com, a general interest informational Website.
In addition, the company provides Cannabis Consultant Marketplace, an outsourcing freelancing matching platform to enable cannabis companies to post projects and hire consultants.
Further, it provides operating services; and operates CR Labs, Inc., which offers analytical testing services, such as residual solvent analysis, pesticide screening, microbiological screening, terpene analysis, and cannabinoid potency profiling of cannabis and cannabis infused products to growers, processors, and dispensaries.
As of mid-summer, the company had already exceeded 700 total business accounts and captured significant market share. CEO William Waldrop stated at the time,
“We could not be more pleased with our revenue growth, especially over the past couple of months. We have established a reputation of trust, integrity and efficiency and word is traveling fast. Combine that with our aggressive approach with marketing and sales and it is a given that we will exceed 1,000 accounts in short order. We are happy to report that this near-term growth will be achieved through our existing facilities and only scratches the surface when it comes to our potential.”
Since then, SGBY has gone on to purchase a fifth cannabis testing laboratory, the latest located in Portland, Oregon. That announcement came just days after announcing the fourth laboratory purchase in Northern California.
Waldrop stated, “Today we ramped up our plans for growth by signing a letter of intent to purchase an already existing testing facility in Portland. With this one strategic move, the 90-120 day window we had in place for opening a facility in this market has virtually been eliminated. This acquisition also adds hundreds of already existing accounts to the Signal Bay portfolio.”
When you’re seeing strong growth in ROI, the market rewards aggressive expansion, especially as sales are growing and the legal backdrop for the Cannabis continues to promise potentially limitless upside.
Earning a current market cap value of $14.2M, SGBY has very little cash on the books, but has begun to see skyrocketing sales growth, with revenues approaching a half million over the past year, but jumping over 15x in that time. Along with total assets above $720K weighed relative to a manageable load ($317.18k) of total accumulated debt, the company presents a rosy picture of balance sheet health and speculative opportunity. As the Cannabis space continues to set out on what may well be triple digit CAGR for years to come (depending on the evolution of legislative factors), it’s no wonder the company’s recent expansionary moves have been embraced by the market with such open arms. To get the full story on SGBY subscribe below to oracledispatch right now.