MissionIR Small-Cap Investor Blog

Thursday, December 11, 2014

ENGlobal Corp. (ENG) on the Upside: A Season of Growth Outpacing the S&P 500

ENGlobal operates through two strategic business segments to provide energy-related automation and engineering services for clients in the energy, pulp and paper, and government sectors throughout the United States and internationally. Quality, safety and innovation are staples of the company’s progress through nearly three decades of operations, though strategic management takes the crown for the company’s current financial performance.

ENGlobal overcame challenges, difficulties and rough spots through the last few years, benefiting from a turnaround strategy that included the divesture of its Field Solutions Segment in September 2012. The company is now in a season of financial strength as it pursues growth in its remaining Engineering, Procurement and Construction Management (EPCM) and Automation operating segments.

In the third quarter of 2014, ENGlobal increased revenues from continuing operations by 17.0% to $26.9 million, compared to revenues of comparable operations of $23.0 million in the third quarter of 2013. The company recorded third quarter 2014 net income of $1.8 million, or $0.07 per diluted share, compared to a loss of $0.1 million, or $0.00 per diluted share, for the year-ago period.

For the nine months ended September 27, 2014, ENGlobal reported revenue of $81.0 million, an increase of 26.8% compared to the comparable period of 2013. Nine-month 2014 net income of 2014 of $5.2 million, or $0.19 per diluted share, was an increase from a net loss of $2.6 million, or a loss of $0.10 per diluted share

Reporting the three-month and nine-month results and referencing the struggles of 2012-2013, ENGlobal CFO Mark Hess in a news release stated that the company is “continuing to see positive results from initiatives that have been undertaken at ENGlobal over the last two years. Our improved performance is best demonstrated by a significant increase in margins, consistent project execution, as well as substantial internal growth in our continuing operations. We maintained a substantial cash balance and had no borrowings during the quarter …”

William Coskey, P.E., who was appointed president and CEO of ENGlobal in August 2012 and has served as chairman of the board since 2005, steered the company through its significant changes and into its current state of profitability and growth.

In the third-quarter news release, Coskey echoed Hess’ praise for the stronger performance, stating that, “ENGlobal is continuing to perform well, both operationally and financially, as evidenced by this fourth consecutive quarter of profitability. All stakeholders in our company can and should take pride in the significant turnaround that we together have accomplished over the last two years. Our solid financial footing now gives us an excellent base from which to extend our company’s growth.”

The market has taken notice of this financial solidification. Four straight quarters of profitability has boosted the company’s stock performance. Year-to-date ENGlobal is trading 35.7% higher with shares up 5.6% at $1.90 in today’s trade.

For more information visit www.englobal.com

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Wednesday, December 10, 2014

ENGlobal Corp. (ENG) – Offering Quality Engineering Services “The ENGlobal Way”

ENGlobal Corp., a Texas-based provider of engineering and automation services, is committed to displaying good stewardship of the world and to safely deliver solutions that helps its stakeholders achieve success. The company’s value-adding solutions are split into several categories: automation integration; automation engineering; engineering and construction; and subsea controls and integration.

ENGlobal serves its multiple clients and markets (upstream, midstream, downstream, pulp and paper, alternative energy and government) the ENGlobal way, which calls for its team members to:

• Work safely first, above all else.

• Operate ethically and with the highest integrity, without exception.

• Be totally responsive to valued clients and serve them with quality services.

• Always exhibit teamwork and collaboration across the entire business.

• Continuously seek to improve, to innovate, and to differentiate themselves.

• Display urgency, passion and commitment in all business dealings.

The ENGlobal way shines through in the company’s core values. Those values include a commitment to health, safety and the environment; integrity and accountability always; teamwork in all the company does; quality throughout; and communication from the start.

Clear communication is a staple at ENGlobal. At the start of every project, the ENGlobal team works with the client to set clear objectives that help describe success for all specified deliverables. By keeping the lines of communication open throughout the project, the company is able to bolster working relationships and better meet its clients’ needs.

For close to thirty years, ENGlobal has focused on automation solutions and select Engineering, Procurement, and Construction Management (EPCM) projects primarily for the energy sector throughout the United States and internationally. Since then, the company has strived to become the favored provider of state-of-the-art automation integration services and select EPCM projects to clients around the globe.

For more information, visit www.englobal.com

Victura Construction Group, Inc. (VICT) is on the Front Lines after Catastrophic Events

Last May marked the infamous, three-year anniversary of the EF-5 tornado that tore through Joplin, Missouri, just across the northeastern Oklahoma border. As one local reporter noted, the city, like Moore, Oklahoma, lost a hospital. The community’s health care facilities became symbols of overall recovery and revival.

Victura Construction Group is a holding company focused on strategic acquisitions within the construction industry that service the restoration and re-building needs that follow catastrophic events. The company in many ways can be considered a vital player in the overall recovery process through the deployment of solid business practices and management, ethics and financial resources where applicable. The foundation of VICT’s business model is driven through its leveraging of strategic industry relationships to help ensure success on behalf of company acquisitions.

VICT’s service niche becomes even more valuable following the overlay of post catastrophic event market statistics. Weather and climate disaster data strongly suggests construction expertise and resources following such an event not only have played a pivotal role in the economic and emotional rebuilding process but one whose relevance will continue grow and be relied upon following natural and technological disasters going forward. In 2013, there were 9 weather/climate disaster events with losses exceeding $1 billion each across the United States. These events included a drought event, 2 flooding events, and 6 severe storm events. Overall, these events resulted in the deaths of 113 people and had significant economic effects on the areas impacted. Given the daunting economic strain of such occurrences, the relevance of VICT’s business model becomes crucial.

While opportunity for players within the construction industry predictably mirrors economic indicators such as gross domestic product (GDP), housing starts and current employment statistics, Victura’s market opportunity is identified through occurrences which are ‘catastrophic’ by nature, making the target far more apparent and verifiable.

A common occurrence accounting for massive economic impact, both positive and negative, comes in the form of coastal area flooding. As we continue to refine and improve our country’s recovery mechanism, never before has the need for swift, proficient and cost effective renovation and re-build services been more apparent. Reuters reports that as sea levels rise, tidal flooding along the U.S. coast is likely to become so common that parts of many communities, including the nation’s capital, could become unusable within three decades, according to a new report from nonprofit science advocacy organization, Union of Concerned Scientists.

The report’s projections build on recent studies – including one by Reuters published last July – that documented a dramatic increase in tidal flooding over the past half century. Many coastal communities are already struggling to cope with routine flooding that makes streets impassable and overwhelms storm-water systems.

Using a methodology similar to those of the recent studies, scientists projected the trends 15 to 30 years into the future at 52 sites around the country. The study used moderate sea-level rise projections from the National Climate Assessment, a U.S. government report based on input from some 300 scientists, engineers, industry officials and other specialists.

With flooding being just one of dozens of events creating revenue opportunities for VICT, it is clear the company is doing well demonstrating the necessary experience and market sense to differentiate itself and seize burgeoning market opportunities to the benefit of its shareholders.

Friday, December 5, 2014

Net Element, Inc. (NETE) Businesses Serve as Catalysts for Aggressive Corporate Growth

Net Element is a technology-driven group using proprietary technology to transform global mobile commerce. The company differentiates itself from competitors by focusing on value-added products and by applying years of specific market expertise to deliver innovative and scalable solutions for consumers and merchants.

Specializing in mobile payments and value-added transactional services, Net Element’s solutions enable consumers to make commerce transactions from their mobile device. On the merchant side of the transactions, Net Element’s online and offline payment capabilities allow vendors to conduct reliable business transactions anywhere and anyhow.

Under the Net Element umbrella, the company owns and operates a group of businesses, each with specific goals, purposes, market reach and focus on a specific niche of the commerce market.

TOT Group is Net Element’s global mobile end-to-end payments and transaction processing provider for mobile operators, content providers and merchants. The company’s services range from processing electronic payments at the point of sale (POS) to managing merchant terminals and providing information management services.

Within TOT Group’s portfolio of companies is Unified Payments, which was recognized by Inc. Magazine as the No. 1 fastest growing private company in America in 2012. Unified Payments was established to deliver a robust suite of payment processing solutions with fast and secure authorizations coupled with reliable uptimes. The company’s range of solutions includes industry-specific solutions (direct marketing, retail, hospitality, quick service, petroleum, supermarkets, healthcare, etc.), value-added solutions, POS equipment and financing solutions.

TOT Money is a mobile billing solutions provider and Russia’s leading SMS content provider for wireless carriers, content providers and merchants. The company recently secured a financing agreement with Bank Otkritie Financial Corp., one of Russia’s largest private-listed banks; in conjunction with its Alfa-Bank factoring agreement, TOT Money will have approximately $15 million of available credit to help fund its growth and expand its presence in Russia’s transactional services market.

Aptito is Net Element’s next-generation cloud-based POS payments platform for the restaurant industry. Aptito combines traditional POS functionality with modern digital menus, mobile ordering, social media, and management tools such as reservation scheduling and payroll systems. The recently launched Aptito version 2.0 has been optimized for iOS 8.1 and upgraded to add many new features, including business management and analytics. Aptito’s visual POS concept is designed to increase sales, productivity and customer retention.

In Net Element’s most recent quarterly filing, the company reported significant debt reduction and a narrowed quarterly loss. In the third quarter Net Element also eliminated more than $15 million of debt from its balance sheet, secured financing to accelerate its growth in the Russian market, and announced the availability of Apple Pay to merchants using the company’s Unified Payments offering.

Mobile commerce is projected to grow nearly 50% in the next four years, according to Forrester. Armed with a portfolio of synergistic businesses and strengthened balance sheet, Net Element is proving its position as a rapidly growing corporation with an aggressive strategy to flourish in the mobile commerce markets in emerging companies and the United States.

For more information, visit www.netelement.com

ENGlobal Corp. (ENG) – A Specialty Engineering Services Firm for Markets around the Globe

Quality is a fundamental value at ENGlobal Corp., a Houston, TX-based specialty engineering services firm that focuses on automation solutions and select Engineering, Procurement, and Construction Management (EPCM) projects for the energy industry and markets.

The ENGlobal team holds tightly to quality—one of six core values—in every aspect of the company’s operations. The company stakes its reputation on delivering superior products and services, and closely follows the ISO-9001 standards that guide its industry to ensure it constantly delivers the best possible value for all stakeholders.

ENGlobal operates two divisions that specialize in subsea control systems, oil and gas automation solutions, and engineering and construction projects:

• Automation

The Automation division concentrates on integrated services that pertain to the design, creation and execution of complex automation, control, instrumentation and process analytical systems.

• Engineering, Procurement, and Construction Management

The EPCM division provides consulting services for the development, administration and implementation of projects that call for expert engineering, construction management, and linked support services.

A sampling of the company’s offerings includes:

Advanced Environmental Controls

As part of ENGlobal’s automation integration solutions, ENGlobal offers advanced environmental controls, such as PLC-based diagnostics and health monitors for new wall-mounted HVAC units.

Driller Cabin Integration

Another of the company’s automation integration solutions deals with driller cabin integration, which offers just-in-time delivery and a rugged design approach ideal for today’s automated drilling rigs and extreme environments.

Universal Master Control Station

Among ENGlobal’s subsea controls and integration solutions is the Universal Master Control Station, a pre-engineered solution that uses off-the-shelf hardware and software to interface with topside systems and components.

Established in 1985, ENGlobal Corp. aims to become the preferred provider of innovative automation integration services and select EPCM projects to clients across the globe.

For more information, visit www.englobal.com

Thursday, December 4, 2014

Continental Transfer & Trust Draws its Passion for Excellence from the Company’s Highest Office

Ask any public company CEO and he or she will likely tell you that their stock transfer agent plays a pivotal role in their investor efforts through the issuance of securities and subsequent transfers that result in sales, purchases, reorganizations, tender offers, and other transfers of ownership. More specifically, stock transfer agents are involved in issuing stock certificates that reflect increases in the number of outstanding shares such as initial issuance, stock splits, stock dividends and dividend reinvestment programs. With issued shares being traded on the open market, stock certificates are sent to the transfer agent who will cancel the shares registered in the name of the seller and issue a stock certificate registered in the name of the buyer. Vital to transactions involving the transfer of securities is the maintenance of accurate ownership records with regard to issued securities, since it is the registered owners of the securities who enjoy the ownership rights. It is the responsibility of the transfer agent to maintain up to date records in this area.

Company’s such as Continental Transfer & Trust, New York, NY, have embodied and defined the industry standard for professionalism, integrity and trust for more than a half century. The company coddles its customer with impeccably accurate, personal service that results in a sense of confidence and peace of mind that can only be termed invaluable. What’s more, companies do not achieve the enviable status Continental enjoys by accident. It is accomplished through a steadfast belief and passion that stems from the company’s leadership – and in this case, one does not need look further than the office of President and Chairman, Steven Nelson.

Possessing more than three decades of direct industry experience, Mr. Nelson employs a ‘hands-on’ approach uncommon these days from any company’s highest ranking executive. His involvement extends into day-to-day organizational and administrative issues through the overall management of client initiatives. An attorney by trade with a background in public and private practice, he is a member of the New York State and Federal Bars. He has practiced at Simpson Thacher & Bartlett, and as a federal prosecutor. Steven is a member of the Securities Transfer Association Board, and chairs its Legal Committee, which is active in promoting important changes within the industry. Graduating magna cum laude from Brandeis University at Waltham, Massachusetts, he is a past recipient of Law Review honors from NYU Law School.

Founded in 1964 to support small to midsize emerging companies, Continental aims for the highest level of client responsiveness through a uniquely customized set of business solutions. The company has embraced and maintained this vision and commitment to this specific market throughout its history.

For more information, visit www.continentalstock.com

Wednesday, December 3, 2014

Net Element, Inc. (NETE) Lets Little Guys Play in the Increasingly Big Leagues of Mobile Payment

The mobile payments market continues growing by leaps and bounds as more and more consumers worldwide put away the card and pull out their smartphone or tablet to settle up. The rise of Alibaba’s (NYSE: BABA) Alipay, the biggest online payment platform in China, as well as the recent rollout of Apple’s (NASDAQ: AAPL) Apple Pay, are striking hallmarks of a massive, underlying trend that has even big banks now realizing it is essential to adopt a mobile-first strategy that focuses on consumer experience. Banks handled roughly $410 trillion in noncash transactions last year, or more than five times global GDP, a figure estimated to climb to around $780T by 2023 (Boston Consulting Group Perspectives) and RBS (NYSE: RBS) estimated last year that the mobile payments segment is growing at around 58.5% annually, making the space extremely attractive for banks and non-banks alike.

The size of the domestic mobile payments market alone is on-track to hit upwards of $90B in the next three years (Forrester Research), or a 600%-plus rise over the $12.8B spent in 2012. Globally, alternative payments are even set to overtake credit and debit card transactions, according a recent study by WorldPay, rising to as much as 59% or more of the overall online alt-transaction space by 2017, with e-wallets set to claim around $1.65T over the same interval, driven by factors like 44% of all payments in China being made using e-wallets (Alipay is responsible for some 30% or more of this entire space). As smartphone penetration climbs beyond 54% in North America during coming years (the highest ownership rate for smartphones anywhere on earth), payment schemes like PayPal (57% of the market) will help mobile payments grow to some $117B by 2017.

Starbucks (NASDAQ: SBUX) was recently noted for claiming over 90% of the mobile transaction space in the U.S. during 2013, with some $1.3B in business done overall thanks to their early adoption of relevant technologies and systems. That is a sizeable chunk of the market and an enviable lead amid a space doing 50% plus growth numbers, as more and more consumers opt to use their mobile to pay. Dunkin’ Donuts (NASDAQ: DNKN) is looking to emulate the success of Starbucks in this area with their own App and systems, taking full advantage of their already successful loyalty points program, in order to secure more of the mobile market.

One of the most important aspects to this entire mobile payments revolution that is not as widely talked about is how the seamless integration of information and technology allows companies to not only deliver granular, big data-driven situational awareness of their business architecture, but to enhance customer engagement simultaneously. Naturally, ease of use is a major driver here for consumers, with simplified point-of-sale (POS) interactions allowing for eye-catching digital menus, as well as similar benefits to proprietors, with the elimination of additional man hours, otherwise wasted dealing with antiquated payment system-related busywork.

Net Element (NASDAQ: NETE), the owner/operator of TOT Group, is one of the more compelling plays in this sector today, with extensive groundwork already completed in mobile payments and value-added transactional services. TOT Group’s various segments cover all the major bases. Unified Payments is a credit and debit card-based payment processing provider for merchants. Aptito is an all-in-one, cloud-based, next-gen digital POS solution and smartphone App. TOT Money is a mobile payment processor/mobile commerce provider, helping wireless carriers, content providers and merchants handle transaction payment, aggregation and distribution.

The company recently revamped their Aptito POS platform, which uses iPads as the deployment vector, bringing full iOS 8.1 optimization and a host of new features to the table, features that are capable of tapping into the real business analytics and management benefits enabled by modern POS systems. These kinds of situational awareness capabilities have hitherto not really been accessible to most SMEs due to cost, but the new Aptito 2.0 framework (in conjunction with Unified Insights) makes it an easily affordable snap, while also enabling even small businesses to execute attractive, highly engaging interactive kiosks, tableside ordering systems, and digital menus. Full social media integration, mobile ordering, reservations, scheduling, and even payroll systems are possible with Aptito 2.0, allowing revolutionary workflow advancements like waiters being able to place orders from their mobile device and have it sent directly to the kitchen, or allowing staff/management to do comprehensive inventory management from anywhere.

Inventory management in a restaurant for instance is a huge issue, but Aptito 2.0 allows for things like auto-ordering via email to distributors, vendors or merchants, all seamlessly synchronized with the POS system. Digital menus using such a system allow for instant updates, cost-free menu changes, and real-time tracking of what is available, reducing overhead like never before, while delivering a superior customer experience and even cutting out confusion or wasted effort by staff members. Such a system can have a transformative effect on a business like a restaurant and it also allows managers/owners to get a solid handle on costs, while really getting to know their clientele’s spending habits and tastes (a marketing Godsend).

Extremely affordable self-order iPad Kiosks from Aptito allow for eye-popping graphics and pictures of items, simultaneously creating multiple points of sale and cutting down on the staff workload, with everything synced up and tracked via Aptito’s iPad POS software, or even sent directly to the kitchen staff. For merchants, the hybrid architecture of Aptito 2.0, which allows for “offline mode” (compensates for lost connections to the cloud, leveraging Net Element’s local server solution to provide nearly seamless uptime via synching to the Amazon cloud), is a massive advantage. Net Element even tailors their deployments to suit the individual business type, representing a significant cost and complexity savings over traditional PC-based POS systems.

For more information on Net Element, visit www.NetElement.com