TLRA - Four Small Caps Stocks Breaking Out or Being Acquired Right Now
NEW YORK, NY / ACCESSWIRE / March 5, 2019 / The following are some of the best small-cap opportunities on the market today. In particular, we highlight Conversion Labs (CVLB), an e-commerce company rapidly approaching $3 million a quarter in revenue while trading at a shockingly low valuation of $6.34 million. Conversion labs has a portfolio of proprietary brands in health and technology, of which its Shapiro MD brand has grown from nothing to a ~$10 million run rate within 12 months of launch with over 55,000 customers. With volume tapering off, now is an attractive time to look into the company.
Today, we find the following small cap stocks to be of particular interest: Conversion Labs Inc. (CVLB), Telaria Inc. (NYSE: TLRA), Attunity Ltd. (NASDAQ: ATTU), and Conduent Incorporated (NYSE: CNDT).
2019 has been an interesting year for equities, with many investors electing to sit on the sidelines despite several companies delivering outstanding quarterly results. This might be an adverse but expected reaction to the high volatility the market has experienced lately, however this behavior has not gone unnoticed by management teams and smart money. In fact, due to strong quarterly performances being met by little to none investor support, many undervalued companies are now electing to go private or are being acquired.
The most recent example of this trend is Attunity Ltd. (ATTU), where the data analytics company agreed to be taken private in a $560 million all-cash deal by Sweden-based Qilk, representing an 18% premium to its closing price before the deal was announced.
Conversion Labs (CVLB) : Revenue On Pace to Double Current Market Capitalization
Conversion Labs Inc. (CVLB) (Market Cap: $6.34M) focuses on the acquisition and the subsequent marketing of unique brands in the health and technology sectors. The company has made substantial progress in the last 12 months. CVLB took a majority interest in PDFSimpli, a cloud SaaS brand, in June 2018. Since taking a majority interest, PDFSimpli has grown to a top 25,000 website in terms of traffic, with over 250,000 registered users in the first 12 weeks of commercial launch. This goes to highlight the company's powerful internal advertising platform, giving it the ability to quickly turn acquired or recently launched brands into rapidly growing ones.
The significant growth of its brands resulted in $6.14 Million in revenue for the 9 months ended September 30th of 2018, an increase of 71% over the same period ended in 2017. Assuming the company's brands have continued to grow at the same pace, Conversion Labs should be doing well over $3 Million a quarter in revenue, on pace to nearly double its current market capitalization by June. We believe it's worth mentioning that the company reported gross profits of $2.06 Million for the quarter ended September 2018, highlighting a meaningful undervaluation compared to its peers in the same industry.
Continuation of their growth in revenues and/or profits could allow Conversion Labs to meet the uplisting requirements for the Nasdaq or NYSE within the first half of 2019, boding well for liquidity and early investors. With the company's 10-K expected later this month, this could be an ideal period to learn more about the company.
Telaria Inc. (NYSE: TLRA) : Smashes Q4 Earnings With 232% Revenue Growth in Connected TV Ecosystem
Telaria Inc. (TLRA) (Market Cap: $220.67M), beat the street by reporting fourth quarter revenue of $19.7 million, up 31% year over year. This is partly in thanks to their growing CTV ecosystem, designed to manage premium video advertising. In their earnings call, management indicated the CTV revenue increased from $3.5 million to $14.8 million in the last year alone.
Facilitating the growth of their CTV ecosystem is their expanding relationships in the CTV publisher space, where they worked to solidify their relationship with Hulu and bring on new networks such as Cheddar, Outside TV and Astro this year. With CTV representing just 1% of total revenue at the end of 2016 to 33% of revenue by Q4 of 2018, this continued growth looks promising for Telaria, Inc. Telaria saw its share price rise as much as 22% last Wednesday to close 17.5% higher.
Conduent Incorporated (NYSE: CNDT) : Meeting Q4 Estimates While Reaching Settlement With The State of Texas
Conduent Incorporated (CNDT) (Market Cap: $3.04B) came out with quarterly earnings of $0.26/share, meeting estimates. In addition to meeting estimates, former Xerox technology subsidiary Conduent Inc. agreed Tuesday to a $235.9 million settlement with the State of Texas over its legacy Medicaid Fraud-related settlement case.
Aside from settling legacy issues, the company is continuing to grow its services, intending to launch five new enterprise programs, powered by Microsoft Azure, to offer new cloud platforms for AI Conversation, Analytics, Blockchain, Automation, and Mobility. As these programs are rolled out, investors may see benefit if the products are able to differentiate themselves in their competitive landscape.
About One Equity Stocks
One Equity Stocks is a provider of paid-for research on publicly traded emerging growth companies. This is an advertisement. We are not a licensed broker-dealer and do not publish investment advice and remind readers that investing, especially in penny stocks, involves considerable risk. One Equity Stocks encourages all readers to carefully review the SEC filings of any issuers we cover and consult with an investment professional before making any investment decisions. One Equity Stocks is a for-profit business and is usually compensated for coverage of issuers we cover as well as other advisory work we perform. Although we always strive to be objective, you should assume we are biased because of the financial relationship we have with companies we write about. In the case of CVLB, we are reimbursed for actual costs we incur and received 300,000 shares of restricted stock for Business Development, Capital Markets and Research Services. The CEO of Conversion Labs has an ongoing business referral relationship with One Equity Stocks, however, neither he nor anyone affiliated with Conversion Labs has participated in the preparation of this article nor receives any compensation related to the services provided by One Equity to CVLB. Please contact us at info@investorclick.net for additional information.
Small Cap Risk Disclosure
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SOURCE: One Equity Stocks, LLC