Several companies go through a period where everything that is coming together seems to be happening at just the right time. It is as if all the stars are aligning and a company has the chance to step out of the small scale business cycle they are currently running in and seize the opportunity to dramatically increase revenues and take its company to the next level.
nCoat Inc. (OTCBB: NCOA.OB) is experiencing a perfect storm with its conditions both internally and externally that are providing them with excellent opportunities to grow exponentially. Paul Clayson, CEO of nCoat, was interviewed today on the Micros Report with Mike “The Analyst” Willingham about its current analyst report that has the 90-day price target set at $1.22 per share.
This perfect storm involves a strategic plan that is going to help nCoat not only drive up revenue share, but also increase its market share. The company is currently operating with the leading edge technology and the most advanced capabilities in coating technologies. With this cutting edge technology, nCoat is currently acquiring several different companies with products offered to market and then using its coating technology to enhance their products aimed at consumers.
In a recent test, nCoat showed several diesel engine makers how beneficial its coating technology can be to the industry. The test showed that nCoat’s coating ability will withstand one million miles of road testing, which is head over heals above the rest of the competition who currently have their coats lasting 80,000 miles.
During the interview Clayson said, “After reviewing all of the companies in our industry valued under $50 million in market cap, we believe that our company is extremely undervalued. Last year we did $5 million in sales; we are projecting $9 million in sales for 2007, and in 2008 we expect to gross over $20 million in revenues.”
This revenue stream is generated by the company’s current stream of 60 percent Original Equipment Manufacturer (OEM) and 40 percent from its retail side. The demand for OEM is relatively high – compared to industry standards – based on the automotive companies demand for nCoat’s coating products. These products help increase horsepower and provide more airflow to engines creating longer lasting and greater productivity. The company is extremely satisfied with this revenue mix and states that its largest customer only generates 5 percent of sales. This is a very strong mix for any company and backs the financial strength behind its revenue streams.
With a current price target of $1.22 and the revenue expectations previously mentioned, it is easy to see that this emerging company has its stars aligned helping create the perfect storm of opportunity.
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