TEXTMUNICATION HLD COM NPV (OTCMKTS:TXHD) is a stock that’s been checking out the lower boundaries of a 12-month range basing around the penny mark for the past year, but has started to generate some increasing fervency and interest in recent days following the Company’s latest shareholder update.
TXHD has a track record that includes a number of dramatic bounces. With volume skyrocketing by over 460% above the stock’s longer term average, traders are well-advised to keep this one on the radar.
TEXTMUNICATION HLD COM NPV (OTCMKTS:TXHD) bills itself as a company that provides mobile marketing solutions, rewards, and loyalty services in the United States, Canada, and Mexico.
The company operates an online mobile marketing platform that provides mobile coupons, mobile voting/polls, multimedia messaging, text messaging, Web widgets/online forms, and loyalty and rewards programs; and SMS reminders related to various appointments, anniversaries, b-days, oil changes, tune ups, and other events, as well as offers APIs that integrates with various systems or applications.
It serves quick service restaurants; gyms, and health and fitness facilities; casinos, golf courses, bowling centers, and comedy clubs; and retail stores, as well as bars, salons, and medical professionals.
The company is based in Pleasant Hill, California.
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Toward the end of last week, Wais Asefi, Chief Executive Officer of Textmunication, Inc., issued a communique to the shareholders of the Company.
In that piece, Mr. Asefi voiced his enthusiasm about the company’s path forward in the SMS Mobile Marketing space as what he called “the most effective medium for targeted consumer communication.” It’s hard to argue with that position.
Asefi went on to cover some recent accomplishments by the Company, including the signing of an exclusive SMS arrangement with CORAnet Solutions and the Company’s entrance into the Healthcare sector with a leading Patient Health Record firm who is integrated with Allscripts, which was noted as “the world’s largest Electronic Health Records company.” We would note that the deal could generate upwards of 30 mln SMS messages per month at peak performance.
The CEO also covered, among other things, some notable new strategies in the premier Club Management Software space for conversion to an SMS solution, as well as direct promises of increased M&A activity.
The company has made several moves in recent months to improve their financial position, including debt settlements from several note holders, the return of 59 million shares to the Treasury, and the elimination of several convertible notes during Q3. This appears to be a priority and may be as responsible as anything else for the stock’s recent firm action. According to Mr. Asefi, the Company wants to have all convertible notes paid off by early Q4.
“We will continue to separate ourselves from the competition through innovation of our software and scalability of our platform. Textmunication has the only automated SMS solution for the Health and Fitness industry. Last week in Baltimore, we displayed our solution to more than 100 CIOs and CTOs at a technology summit. We plan on capturing the market share of more than 35,000 gyms in the U.S. with our unique and scalable service.”
Earning a current market cap value of $2.5M, TXHD has very little cash on the books, alongside total assets a bit less than $510K, which stands against a balanced weight of $534k in total accumulated debt. The balance sheet doesn’t scare us at all, particularly when you look at recent top line numbers: over $350k in sales last quarter, and a vector bend north at 39% on that figure, year/year. The question rests with organic sales growth. And in all such cases, the proof is in the pudding. Given the action in the stock, the market is not yet convinced this Company will serve up that pudding. But, if it does, this could be an interesting play as the potential for new B2B SMS strategies are likely underappreciated. For continuing coverage on TXHD and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!