On4 Communications Inc (OTCMKTS:ONCI) has begun to consolidate and correct its astonishing gains, as we predicted in our last update. However, we are still seeing positive and supportive action from company management, which maintains a relatively strong level of attention from traders and investors.
To wit: the company just announced several key actions, including the addition of the two new board members, Michael Wach and Richard Lefkowitz, the retirement of a load of preferred shares, the hiring of 3 new sales people for the State of California, and the initiation of a 30-day pilot program to be tested on 100 select city vehicles in San Antonio, TX, after which time there has apparently been interest expressed in placing a much larger order.
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, according to all available information, ONCI management and its executive team continues to manifest an almost superhuman level of productive assertion of its operational initiatives, which helps to explain why the market has embraced this stock so readily over recent weeks.
This tone is certainly clear from the company’s most recent press release, which evidences a sense of urgency that is refreshing:
“The final retirement of the original 30 million preferred shares has now been completed, and will be seen in our next quarterly filing due December 15th.”
“I’ve been asked by both Ford Motor Company and Enterprise Rent-A-Car not to comment on meetings as we have signed NDAs. I expect to be able to say more on this later in October.”
“I will be traveling back to Kuala Lumpur to meet with two cell phone service providers for retail selling throughout Malaysia.”
“On4 Communications is pleased to announce an update on its JV with NECA. ON4 will be running the Best Title App with its FLY communications team. Revenue will come to ON4 and be split 50/50 with NECA after expenses.”
“We are pleased to announce that we have signed a contract with a central Florida dealer group with 5 dealerships in Tampa and Orlando and brands including Chevy, GMC, KIA, Hyundai and Audi. This contract is for 20 units per month for each dealership totaling 100 units per month at $200 per unit for a grand total of $240,000 per year.”
Recent action has seen a bit less than 350% added to share values of the listing over the past month of action. This is emblematic of the stock. ONCI has evidenced sudden upward volatility on many prior occasions. In addition, the listing has registered increased average transaction volume recently, with the past month seeing 74% above its longer-run average levels.
Currently trading at a market capitalization of $5.15M, ONCI has virtually no cash on the books, which must be weighed relative to about $491K in total current liabilities. ONCI is pulling in trailing 12-month revenues of $896K. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 73.2%. 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.