$IVST: A Diversified Conglomerate With Strong Fundamental and Technical Analysis
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Cleveland, Ohio-based Innovest Global, Inc. (OTC Pink: IVST) is easily one of the brightest spots across the OTC Markets that is not focused on cannabis or cryptocurrency. While investors are experiencing strong FOMO (Fear Of Missing Out) within cannabis and cryptocurrency, they are missing out on more established and stable businesses that have produced extremely strong returns.
Innovest Global, Inc. is already a ten-bagger in 2018, after starting off 2018 around $0.02 before shooting to an all-time high of $0.50 in March 2018. The stock has cooled off a bit, as to be expected with the face-ripping melt-up that we saw earlier this year. Despite the pullback to the $0.25 area, Innovest Global continues to hold onto the “ten-bagger” title thus far.
Based upon the company’s strong fundamental picture, which is also backed up strong technical, Innovest Global, Inc. could easily retake its all-time high by the end of 2018.
IVST: Fundamental Analysis
Turning to the fundamentals, Innovest Global has had a fantastic 2018 thus far and it is all thanks to the management teams’ incredible ability to execute their vision and growth plan. Currently, Innovest Global operates three separate divisions: Commercial & Industrial, Biotech & Health Sciences, and Building Materials.
The Commercial & Industrial Division is Innovest’s main revenue generator at the moment, with an annual revenue run-rate of $4.5 million. Experiencing strong growth from organic sales and acquisitions, the Commercial & Industrial Division is firing on all cylinders and outpacing expectations.
Innovest Global’s Biotech & Health Sciences Division is home to the company’s 20% stake in StemVax Therapeutics, which specializes in cancer vaccination therapy technology. In fact, the technology was just recently awarded a U.S. patent.
The Division President, Dr. Dwain Morris-Irvin has a busy Fall 2018 conference schedule to help increase awareness surrounding StemVax and Innovest Global.
Dr. Morris-Irvin and the rest of the biotech team are scheduled to attend the BIO Investor Forum during October 17-18, 2018 and will take place in San Francisco, CA. The biotech team will also make an appearance at the 48th Annual Society For Neuroscience Conference, which will be held between November 3-7 in San Diego, CA.
The Building Materials Division is currently in the process of being officially established, which will be completed once Innovest Global closes on its recently announced acquisition of a materials company that is generating $30 million in annual revenues. Management says they expect the acquisition to close sometime during early September 2018.
Management has detailed the serious of events that has took place earlier this year between Innovest and the target building materials company. The initial discussions began back in March 2018, followed by formal negotiations in April 2018.
In June, Innovest management formally proposed the acquisition pitch to the target company’s board of directors. Upon conclusion of the presentation, both parties had signed and executed a Letter of Intent (LOI) document.
In late August 2018, it was announced that both parties have effectively reached an agreement on the acquisition transaction structure and long form documents. Under the agreed terms, Innovest will acquire 100% ownership of the target entity and will issue 5 million common shares (restricted) and a high-five figure cash payment in exchange.
“This transaction represents a substantial, over five-times increase in Innovest’s revenue, and marks entry into its third industry sector. This is a transformational acquisition for Innovest. Because of the revenue, but also because the leadership of the organization is world class, well respected in their industry, and has a vision and plan for growth that I believe is highly likely to succeed in our model once we hit the switch,” detailed Innovest Global CEO Dan Martin.
Management estimates that the building materials acquisition could be completed sometime in early September 2018. More details are sure to be coming shortly.
IVST: Technical Analysis
One of the biggest mistakes that most traders and investors make is that they get too caught up in the short-term noise. Temporary turbulence has a way of shaking down “weak hands” that abandon their position and their investment thesis due to an insignificant short-term event.
Investors and traders looking to filter out the noise and the short-term should utilize weekly and monthly charts. These tend to provide a clearer picture of the current state of the stock and where it could be possibly heading in the coming weeks or months.
If we take a look at a weekly chart of IVST, we see several positives currently:
-Current weekly candle at the high
-50 day moving average (green) trading above 100 day moving average (red)
-MACD shows bear position very weak, looking ripe for a bullish crossover in coming week or two
-Stochastics trending higher, currently around 60 (not overbought or oversold)
While this certainly can change over time, it is the combination of strong fundamentals and technicals that give Innovest Global a positive outlook. Once the company is able to complete its PCAOB audit, file Form 10 with the SEC, and close on its building materials acquisition, it will be off to the races no doubt. Cannabis and cryptocurrency may be the current hot sectors, but it is Innovest Global that is producing amazing results across stable and reliable growth industries.
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