Stocks like Alliance Creative Group Inc (OTCMKTS:ACGX) can be confusing to investors, because they have gross top line (quarterly) revenue of $5M which is larger than the entire value of the company ($4M) – which makes zero sense. This would imply that you could buy the value of this revenue stream by buying all the outstanding shares of the company and take them private. If this were the case, a fund would come in and buy the revenue stream (assuming the costs to make this $5M was less than $5M) knowing they could extract a margin on bringing in this revenue.
Something is amiss when you have a triple zero sub penny (TZSP) touting massive revenue while the share price is trading .0028. Pair that with an enterprise value of $4.1 million – and this makes little sense. If you look at the chart below you can see some share price volatility. But it may be better to look to see where the revenue is coming from.
Alliance Creative Group Inc (OTCMKTS:ACGX) said the overall gross revenue was above $5,000,000 for the 3 months ending March 31, 2017. The gross revenue number represents a new company quarterly record and exceeds the most recent projections by almost 10%. The full quarterly and disclosure report will be released and uploaded to the OTC Markets by May 15, 2017.
COO and General Counsel of Alliance Creative Group Inc (OTCMKTS:ACGX), Paul Sorkin, said, “We are very proud of our team’s significant accomplishments. The $5,000,000 threshold exceeded all of our internal goals. Many of our projects are progressing well and we hope to have continued success moving forward. Our top priorities continue to be focused on growing the overall company, diversifying our revenue streams, and leveraging our shared resources while looking for ways to grow faster and create long-term value for our shareholders, investors, and employees.”
Alliance Creative Group, Inc. (ACGX) is a full-service product-development agency that since 1997 has been helping clients connect their products and services to their customers. ACG focuses on creative and design services, printing and packaging, brand and product development, fulfillment, logistics and transportation, strategic consulting, digital marketing and engagement, and software development.
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ACGX 10-Day Chart Below:
They also have an internal product called PeopleVine which is a software platform combining CRM, marketing, CMS, and sales into a single, seamless customer engagement suite. PeopleVine was started in 2014 with the vision of providing a consolidated platform for businesses to better connect and engage their customers.
PeopleVine is a turn-key platform providing 60+ out-of-the-box pages and experiences to further engage with consumers. PeopleVine users can either leverage the out-of-the-box experience or customize it by making a few design tweaks to building their own experience on the same APIs we used. Flexibility is key to ensuring a consistent and unique branded experience, but also saves developers time by not having to start from scratch.
The company says PeopleVine is able to ensure continuous engagement all tracked and managed from a single platform. To date over 200 companies across 15 industries have used PeopleVine to power their websites, text campaigns, ecommerce, memberships, and more. Whether launching a loyalty program or your entire website, our tools make it easy to get going-and growing-quicker.
ACGX also has an asset they list under the umbrella called Primary Trucking an asset based carrier located in Chicago, IL. who specialize in truckload freight outbound from Chicago. They have over 30 years of experience in the transportation industry and have the tools to be a primary source for transportation.
The company also lists Rapid Freight Solutions (Rapid) which provides domestic shipping services nationwide, quickly and safely moving products across the country. Rapid specializes in LTL, air freight, hot shot, trade-show, flatbed, intermodal, over-dimensional, step-deck, and refrigerated trucking. The team has 30 years of experience and relationships with more than 140 carriers nationwide, helping ensure the customers quality service with competitive pricing.
As you can see, ACGX has combined many unrelated businesses in one basket. This can be good and bad, but for common shareholders with today’s prices you must hope that the short term players who drove shares higher stick around for the long term. Also, the discrepancy with the top line revenue as it relates to the market price will sort itself out one way or another. This is one to keep an eye on. For continuing coverage on shares of $ACGX stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!