Diversity plays a critical role in the success of most companies. In the Over The Counter Bulletin Board world, many companies lack the ability to diversify for the simple reason of financing.
The vast majority of OTC companies are developmental and are working to get their product out on the market in any means possible, but typically face the battle of juggling development with marketing and financing all at the same time, which certainly can impede growth.
Las Vegas-based Inova Technology (OTCBB:INVA) is an exception in the industry. Inova generates revenues through two wholly-owned subsidiaries, RighTag and Desert Communications, which cover an array of products. Inova is an enterprise level Information Technology solutions provider specializing in providing proprietary RFID solutions, wireless networking, storage and security technology solutions and IT professional services.
The game plan appears to be working as news was released last month that Desert Communications currently had a backlog of approximately $20.7 million of awarded and funded projects; the largest backlog of awarded and funded contracts in the Company's history. That’s not to say that RighTag is a slouch, either.
RighTag has sold its proprietary RFID (Radio Frequency IDentification) products with the likes of Honeywell, Northrop Grunman and the U.S. Department of Defense. RighTag has also worked with contact lens manufacturing giant Gerber Coburn in providing them with RFID tag solutions that could withstand the rigors of a manufacturing production line which then gave Gerber Coburn the ability to track the contact lens sheets and differentiate each sheet when required.
Today, Inova announced that Desert Communications has been awarded funding for a network solutions project for Abilene Independent School District. The project involves installing various network solutions for 20 schools in the district and is valued at $1,327,722.50.
The project is an Erate 13 project, a federally-funded platform, which operates through two separate stages with regards to companies involved: awarding of the project and approval of funds for the project. Now that the project has made it through both stages, Desert Communications will work with the school district scheduling and implementing the project as soon as possible, although it is not possible to identify a specific date for commencement at this point.
In the press release today, Inova CEO Adam Radly commented on the status of not only this latest project, but also stated that there are several other projects that are going through the cycle of approvals and that they are expecting to "be informed of the results of those bids during February and March." With only 10 million shares in the float, the stock trades very thinly, but with a market cap of only $4 million and the possibility of more contracts in the near future to add to the substantial backlog of orders, Inova may be a company that receives more investor’s attention relatively quickly.
Technically speaking, the share price has seen a surge today, although on still relatively low volume for a stock trading at seven cents, but the pps has now pushed above the 50-day simple moving average which is a bullish sign.
Fifty-two-week highs are still off on the horizon as the pps briefly touched $0.28 last April with more recent highs in the area of 16 cents within the last three months. The indicators appear to be turning bullish as the stock price has been making higher lows since late last year.
At seven cents, the pps is facing resistance now, with the next major level at 11 cents. Technical traders will be watching the volume as fundamental traders seem to be getting behind the stock based on the developments of Inova and its subsidiaries. Proper due diligence is always encouraged.
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