Noteworthy InsiderFinancial article (from March 17
Post# of 1705
TEXTMUNICATION HLD COM NPV (OTCMKTS:TXHD): A Tiny Tech Play With Some Run Room
By Chris Sandburg / in Momentum & Growth, Momentum Stocks, Stocks, Tech https://www.insiderfinancial.com/textmunicati...ke/120000/
TEXTMUNICATION HLD COM NPV (OTCMKTS:TXHD) is a tiny tech company that has drawn our attention on a more than 1000% run month to date. The company is running on a couple of seemingly pertinent drivers, both very different, but both potentially offering some growth potential above and beyond the recent run.
Here’s what’s just happened, and what we are looking for going forward as suggestive of the fact that this is more than a fly by night runner.
For those not familiar with the company (and we were firmly in this bracket until recently), Textmunication is a direct marketing company. Well, it has developed, and provides its clients access to, a platform through which they can run their own direct marketing campaigns. Think of it as a sort of software as a service (SaaS) play with the software being the marketing platform. The company works with a bunch of different types of companies, but primarily its clients fall into four broad categories – health clubs, martial arts studios, salons and healthcare firms. Say a health club wants to fire out a thousand SMSs to its client list detailing a discount on spa days, or something similar, it can use Textmunication’s platform to do so.
The company currently commands a market capitalization of around $1.5 million, and that’s with the recent run up taken into consideration. This, despite generating (and this was reported as the first of our focus catalysts just last week) an annual run rate of $1.2 million in revenues, doubling (or at least expecting to double) top line between 2016 and 2017, and increasing SMS volume from 1.5 million in late 2016 to more than 7 million in early Q1, with expectations of between 20 million to 30 million by the end of 2017.
Bottom line on the above – this is a small company with a pretty niche and specific focus, but one that’s growing and growing fast.
The second catalyst has nothing to do with any of this, however, and it’s probably the more important of the two in terms of impact.
On March 6, Textmunication announced that a company called Aspire Consulting Group had been awarded a 10-year government contract. It’s a specialty healthcare contract, and was awarded on the back of what’s called he Strategic Partners Acquisition Readiness Contract (SPARC). Apparently (we’re new to this too), SPARC is a $25B 10-year multiple award performance-based contract that’s available to all components within CMS and healthcare services to procure IT System development services.
Basically, what’s happened here is that Aspire has been put on a list of companies that the healthcare system in the US can use to implement IT infrastructure. There’s no real specifics as yet, but there’s a hint that the company (by way of the contract) will play a role in the restructuring of Obamacare under Trump.
So why is this important for Textmunication?
Well, the latter is a shareholder in Aspire. The two companies refer to each other as partners and sisters and the likes, and the success of one has a direct correlation (by way o back and forth stakes) with the success of another.
As such, the awarding of a government contract to Aspire will be seen (and is being seen) as positive for Textmunication. Now, it’s important to point out here that we don’t actually have any solid info on what the contract means quantifiably for Aspire, and by proxy, Textmunication. That said, it’s a nice press release topic, and we’ve seen what it can do when it hits the wire. We’re watching then, based on potential impact, for any fresh info on the Aspire contract to boost Textmunication’s profile, and draw speculative volume to the stock.
It’s a tiny play, with practically no cash and a strong dilution risk, but there’s some upside on news releases available, and we think the company will play to its strengths and take advantage of any extra attention near term.