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Hello Subscribers,
Hi and good evening,
Tonight we are going to be focusing on a play that seems to have the total package; at just 02 it has a trader’s dream chart and has released monster news. So get ready to do some research because this is one profile you don’t want to miss.
Put Southcorp Capital, Inc. (STHC) front and center on your Watchlist Now
About two months ago STHC slid to 0014… it rebounded with a run up to 0458.
That’s a run of over 3100 pct so yes, this one has proven it can move… and move BIG!
Now, as you can see, after that insane run it came back a bit… and once again the indicators are flashing Green, Green, Green (see indicator overview further down in this email.)
And oh yeah, the Company has agreed to buy back up to 150Mln shares.
STHC seems to have a lot going for it and a killer chart that could be screaming for something big. So, without further delay, let’s get into the details of tonight’s New Technical Play:
Southcorp Capital, Inc. (STHC)
Company Website :: Quote, Chart & Indicators
First, let’s take a look at those indicators we mentioned a moment ago (from Barchart and StockTA):
Short Term Indicators
7 Day Average Directional Indicator: Green
20 Day Moving Average vs Price: Green
20 – 50 Day MACD Oscillator: Green
Exponential Moving Average: Very Bullish
Moving Average Convergence/Divergence: Very Bullish
Low Analysis: Very Bullish
Stochastic: Bullish
Medium Term Indicators
50 Day Moving Average vs Price: Green
20 – 100 Day MACD Oscillator: Green
Exponential Moving Average: Very Bullish
Moving Average Convergence/Divergence: Very Bullish
Low Analysis: Bullish
Fibonacci: Bullish
Long Term Indicators
100 Day Moving Average vs Price: Green
50 – 100 Day MACD Oscillator: Green
Exponential Moving Average: Very Bullish
Moving Average Convergence/Divergence: Very Bullish
High Analysis: Bullish
That is a whole lot of Green!
It is pretty clear that STHC is generating quite a bit of buzz throughout the small markets… we could be watching a special situation develop right before our very eyes.
Yet technicals are not everything and although I would certainly call this a “technical play” STHC has also been releasing some VERY interesting news of late:
STHC just announced plans to enter the 148Bln Dlr weight loss market.
STHC said that it has been contracted by an infomercial company to produce two weight loss products, giving it open access to a market that has been projected to be worth 206.4Bln Dlrs by 2019.
In a recent press release the Company says, “The Company is currently building a factory in Indiana that would be capable of producing the weight loss products.”
See the remarkable news release here:
SouthCorp Capital Announces It Has Agreement To Produce Two Weight Loss Products for Infomercial Company. Weight loss market is expected to reach $206.4 Billion by 2019.
SCTH also has interests in another large markets. In other recent news STHC announced a project that could bring in up to $25 mln per year in revenue!
See the news here:
“On February 19, 2015, the Company has made an offer to acquire an approximately 20K square foot facility in Indiana. The factory would be capable of producing up to 50 mln cans per year for Nate’s Food Co., which would generate up to $25 mln per year in revenue for SouthCorp Capital. The factory includes 5 acres that the Company can build to expand the capacity of the factory to 250 Million cans per year. This acquisition is in addition to the property filed with the inspector on February 17, 2015.”
Now let’s get into some operational details…
SouthCorp Capital Operations
STHC is focused on the acquisition of residential, commercial and industrial properties. As part of their strategy, the Company acquires and renovates single-family and multi-family properties in the U.S. with the intent of reselling the property after renovations have occurred.
In recent months we have seen some giant news out of this Company which has the potential to generate significant revenues and take STHC to the next level.
STHC has entered an agreement to produce two weight loss products for a Company that will produce and air infomercials. The Company expects to begin producing the products within the next 75-90 days.
According to a new market research report the global weight loss market is expected to reach $206.4 Billion by 2019 from $148.1 Billion in 2014 with the North American market projected to account for nearly 43% of the total revenues.
The Company is also currently building a factory in Indiana that would be capable of producing the weight loss products.
Just last month, the Company announced that it made an offer to acquire an approximately 20k sq/ft facility in Indiana. The factory would be capable of producing up to 50Mln cans per year for Nate’s Food Co., which would generate up to 25Mln Dlrs per year in revenue for STHC.
The factory includes 5 acres that the Company can build to expand the capacity of the factory to 250Mln cans per year.
As part of the recent news, the Company announced that it had agreed to acquire a new rotary piston filling can line for Nate’s Food Co. The equipment cost approximately $400k and the Company receives revenue for each can produced from the equipment.
The new line will be capable of producing between 8-10Mln cans per year. The Company is currently forecasting that the new equipment will generate approximately 1Mln Dlrs per year in revenue. Once the factory in Indiana is completely built, the Company expects to generate revenues of 10-30Mln Dlrs per year.
STHC also operates a very different business in which they acquire and renovate properties throughout the U.S. The Company currently holds and has sold numerous properties. You can view a list of their properties with pictures on their website, http://www.southcorpcapital.com/properities/
The Company’s corporate plan is to initially acquire houses to renovate and flip. They then want to use the cash generated from the sale of these houses to acquire properties such as apartment complexes, senior living facilities, and/or mobile home parks.
In news announced by STHC, the Company reported that they have begun developing a site plan for a 30+ apartment complex on its 1.4acres parcel in Indiana. The development of the site plan is part of the Company’s strategy to have 500 apartments in the next 3 years.
The Company goal is to be able to increase its dividends to $150-$200k per month without any major change to its current share structure.
STHC has a LOT going on for the Company at the moment.
Some of the recent news mentions numbers that are seldom heard from a Small Markets company.
Such as, if the factory were capable of producing up to 50Mln cans per year, it would generate up to 25Mln Dlrs per year in revenue for STHC.
Considering developments and news of that size as well as the beautiful chart with all those Green indicators… we could be in for something special very soon.
Currently at just 02 even a slight move could translate to monstrous percentages.
Remember, we always encourage you to do further research. Never take our word for it, read our disclaimer to see why, and of course always consult a professional.
Just because a situation looks great things can still go wrong and often do. Be smart and protect yourself.
Talk again soon,
Remember, we always encourage you to do further research. Never just take our word for it. Read our disclaimer and always consult a professional.
Just because a situation looks great things can still go wrong and often do. Be smart and protect yourself.
Never forget that I am not a broker, analyst or financial advisor in any capacity. These are my opinions and I could always be wrong.
Best Regards,
staff@SmallCapAllStars
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