BTGI featured stock this wknd> Bulova Technolo
Post# of 1514
Bulova Technologies Group Inc (OTCMKTS:BTGI)
Is Today’s Equity Focus
Bulova Technologies Group Inc (OTCMKTS:BTGI) made a strong move to the upside last week after the company provided an update on its subsidiary BT-Twiss Logistics. BT-Twiss has been on an acquisition spree that’s propelled the company into the international carrier arena. The exciting part about BTGI is that this is just one subsidiary as Bulova is one of the most diversified companies trading on the OTC Markets. Last week’s action signals to us that more investors are finding out about BTGI as Friday’s trading volume was almost $1 million. The bull run in BTGI looks to be just getting started.
Bulova Technologies Group Inc owns Bulova Technologies Compliance & Security LLC, Bulova Technologies Health Care Products LLC, Bulova Technologies Europe LLC and Bulova Technologies Machinery LLC. BTGI is lead by CEO Stephen Gurba who has over 35 years of experience in the design, development, production, and management of complex systems for both the defense ammunition industry as well as commercial products. His experience has included responsibility for companies with sales of up to $300 million annually and employing as many as 2000 employees.
The news last week was that BT-Twiss Logistics had significantly added to its portfolio of carriers by over 500 owner-operators as a result of its merger with Gulf Transportation Group on July 21, 2016. The highlight of this deal is the elevation of BT-Logistics into the international carrier arena since the carrier now has access to over 500 owner-operators all having the necessary authority to operate across the US-Canadian border. The US terminal is located in Largo, Florida and the Canadian terminal is conveniently located in Brampton, Ontario.
Sales from this deal are expected to add $2,000,000 to BTGI’s revenues annually. Joseph Drago, the owner of Gulf Transportation Group, also joined the company as Director of Sales and Operations (Canadian Logistics) of the combined entity. Drago has more spent more than 40 years in the transportation sector and brings with him a wealth of expertise and knowledge.
Last week, BT Twiss also agreed to acquire Global Frozen Trucking Inc, a Pinellas Park, Florida based refrigerated trucking company. The acquisition pending final due diligence is expected to close on or before September 30, 2016. This deal adds six late model trucks and seven refrigerated trailers to the current BT Transport fleet. It also brings a current customer base and Global Frozen Trucking founder Emin Pandza is joining BT Twiss. Sales from this acquisition are expected to add $3,000,000 to BTGI’s revenues annually.
In June, BT Twiss increased its cold storage space by approximately thirty percent. This additional refrigerated space allows the company to meet the increase in its current customer requirements and to serve new customers.
With just two deals, BTGI added $5,000,000 in revenues. There are several things we like about BTGI’s moves with BT Twiss. One is that the company is taking advantage of the industry downturn to pick up quality assets cheap. If you look at the performance of other trucking companies, you get a picture of how the downturn has impacted valuations. Take for instance, competitor Roadrunner Transportation Systems Inc (NYSE:RRTS).
BTGI CEO Stephen Gurba sees high demand for transportation of freight throughout the country over the foreseeable future. He said, “BTGI is developing a strong presence in the transportation and logistics industry and expects continued growth in this area.”
Currently trading with a market cap of just $2.8 million, BTGI is an exciting story among small caps. We are waiting for the latest 10-Q from the company, which will quiet the skeptics and get the stock moving even higher. According to the financials on OTC Markets, BTGI quarterly revenues went from $413k for the quarter ended December 2015 to $4,987,000 in the quarter ended March 2016. This is phenomenal growth for any company. Because of this growth, we believe investors will be looking back wishing they had gotten on board at current levels. Shares will not be trading around the $.01 mark for much longer.