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Friday, October 30, 2020

Leo Motors Inc. (OTCMKTS:LEOM) Blasts Off on New Contract

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Leo Motors Inc. (OTCMKTS:LEOM) is a penny play that exploded higher on Tuesday on a headline-driven move off recent pivot lows in the $0.08/share area. The driver was the company’s announcement that it had signed a sales contract with Miho Story, Inc. for the manufacture of smartphone electric vending trucks. According to the press release, the initial order totals approximately thirty million dollars for 500 trucks. This will be followed in two years by the manufacture of 1,000 trucks for an additional sixty million dollars. The truck design and operation solutions were developed by Leo Motors Korea.

The chart shows a bit less than 130% tacked on to share pricing for the stock in the past month, with 126% coming just on Tuesday. That move counters a persistent longer-term downward trend in the stock. The situation may be worth watching. LEOM has a history of dramatic rallies such as this one, and it could extend much higher in the days to come. In addition, the name has registered increased average transaction volume recently, with the past month seeing greater than 410% over the long run average.

Leo Motors Inc. (OTCMKTS:LEOM) bills itself as a company that, through its subsidiaries, engages in the research and development of various products, prototypes, and conceptualizations based on proprietary, patented, and patent-pending electric power generation, drive train, and storage technologies in the Republic of Korea.

The company’s products comprise E-Box electric energy storage system for solar and wind power generation devices, as well as for military, municipal and industry, corporate, electric coolers and heaters, and yachts or small ships customers; and electric vehicle (EV) components, which integrate electric batteries with electric motors comprising EV controllers that use a mini-computer to control torque drive.

It also offers power train kits for compact passenger cars and small trucks, as well as internal combustion engines passenger cars, trucks, and buses. The company is based in Seoul, South Korea.

According to company materials, “LEOM is an EV technology developer possessing numerous EV powertrain solutions such as the Cartridge Battery System, Extreme Battery Pack, EMR Prevention System, and Shock Prevention System. LEOM’s subsidiaries include LGM, who is South Korea’s only certified provider and distributor of electric fishing boats, and LELCON, a developer of IoT automotive maintenance devices, and real-time parking and city light management systems.”

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As noted above, the company just announced that it has signed an initial sales contract with Miho Story, Inc. for the manufacture of smart phone electric vending trucks.

According to the press release, the initial order totals approximately thirty million dollars for 500 trucks. This will be followed in two years by the manufacture of 1,000 trucks for an additional sixty million dollars. The truck design and operation solutions were developed by Leo Motors Korea.

“The vending trucks will be equipped with Leo Motors Korea’s proprietary high efficient Energy Storage System (ESS) that interacts with the cloud server and the vehicle diagnosis system developed by Leo Artificial Intelligence Connected, Inc, another LEOM subsidiary. Additionally, the ESS power source is “swappable” using Leo’s patented cartridge battery system.” By using ESS, the trucks avoid using Internal Combustion Engines and their pollution while using electricity to market smart phones and their accessories on the street.

Being connected to Leo’s patented Multi Drive Recorder (MDR) allows vending truck operators to move in real time to high sales potential locations. Leo’s connected car technology also provides anti-theft, on road battery swap, and real time maintenance services because Leo’s MDR is continually scanning every component of the vending truck.

Earning a current market cap value of $29.3M, LEOM has a decent store ($1.5M) of cash on the books, which must be weighed relative to an appreciable load ($493.77k) of total accumulated debt.

LEOM is making real money, with trailing 12-month revenues coming in at 4.31M. However, into this news, the company is suffering from top line contracting sales, with y/y quarterly revenues declining at -14.1%. That said, obviously, Tuesday’s news may well be a game changer for the company. We will update the story again soon as developments transpire. For continuing coverage on shares of $LEOM stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!

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