The Over the Counter markets are flooded with developmental companies with potential, but the minority actually has developed products that are generating revenue on a regular basis. Now that’s not to say that developmental companies can’t have incredible upside once technologies can hit the streets, but it is still a waiting game until that day comes.
In all honesty, look at all of the "big board" listing companies that have no source of cash flow other than recurring funding efforts to support their efforts of development; costs that are actually increased by paying the fees to maintain the listing. Potential is one thing, but generating cash now is still another.
As a micro and small cap investor, it is always encouraging to see smaller companies starting to generate revenue and develop their business model by bringing their products to market. CHDT Corporation (OTCBB:CHDO) is one of those companies that is making it happen now by stringing together quarter after quarter of growing revenue.
Operating through its wholly-owned subsidiaries, CHDT Corp. is engaged in the development, manufacturing, logistics, and distribution of consumer products to retailers and wholesalers throughout North America.
Capstone Industries is CHDT’s flagship subsidiary and is emerging as a leader in the lighting industry. Involved in design, production and distribution to retailers and wholesalers, Capstone sells a complete line of lighting products including its Eco-i-Lite power failure light, a line of book lights, e-reader lights, wireless motion sensor lights and LED desk lights.
Capstone has been developing its diversified sales channels which now are comprised of bookstore chains, drug, grocery, convenience stores, electronics, office supply, hardware and home improvement stores, internet, mail order, mass market, warehouse clubs and more.
The business strategies are bearing fruit for CHDT and its shareholders lately. News hit the wires today releasing preliminary financial results with the official results anticipated to be released in a couple weeks after audits are completed.
The preliminary third quarter figures show gross revenue of approximately $4,786,534, bringing year to date gross revenue to $8,492,901. Net revenue is estimated at $4,500,542 for the third quarter, bringing net revs to $7,966,239 for the year, a 100.68% increase over the same three quarter totals from 2010 which tallied $3,969,551.
Investors may have been baking-in these increases in anticipation of the results as share value has risen from $0.0065 in August to climb back over a penny in the last few days. Today, shares spiked to touch $0.013 before pulling back to $0.011 at the close with 653,400 shares trading hands throughout the day.
