Titan Global delivered Q3 numbers today, and they were off the charts. According to their press release, the company delivered $5.7 million in profits on $30 million in revenues. It was $.11 per share in earnings.
The stock should be $4 – right? not rocketing up the charts. Drilling down, the numbers are still quite good and suggest a market cap value far in excess of the roughly $50 million this one has.
However- look a little closer. Of the $5.6 million in profits they generated, $4.1 million was related to forgiveness of debt from a derivative. A one time, funny money accounting deal. Off operations, they really only made a profit of about $1.5 million. More like about $.03 or $.04 per share in earnings.
So, if you’re wondering why the stock is not charging out of the gates on this news, there’s your answer.
I am pressed for time this AM, so don’t have time to make a charge and comment on the technical side.
However, with the balance sheet improvements, these gyrations will eventually stabilize and this will be a very profitable company and continues to be undervalued. Technically, perhaps not a break out yet, but a great medium to long term hold for a big move later in the year.