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$WRTC Thread
What is WRTC? Wrap Technologies is a company that is focused on development and sales of non-lethal LOE weapons. The flagship product being the Bola Wrap.
In light of current events, they have seen a strong uptick in sales orders in the United States and Intl.
What is WRTC? Wrap Technologies is a company that is focused on development and sales of non-lethal LOE weapons. The flagship product being the Bola Wrap.
In light of current events, they have seen a strong uptick in sales orders in the United States and Intl.
When I first looked into WRTC . . . my natural instinct was "They only sell one product? One product does not a company make . . . "
So I emailed their IR team and learned that they have plans for additional products in the future.
And I learned a few other exciting things.
So I emailed their IR team and learned that they have plans for additional products in the future.
And I learned a few other exciting things.
First, the Bola Wrap has a RMR (recurring monthly revenue) model. Police Dept. buy the Bola Wrap + cartridges for firing. But once the wrap is fired, it needs another cartridge to be "reloaded". Who do they buy these cartridges from? Yup. WRTC. RMR = very attractive.
Next, I learned that they receive revenue for going in and training LOE on how to use their products. Ok, this is kind of cool. But not super scaleable imo (more training = more employees, etc.)
But it gets really exciting at this last part. WRTC is developing . . . .
But it gets really exciting at this last part. WRTC is developing . . . .
Virtual Reality Training for LOE. The idea behind the VR training is that it helps LOE practice de-escalation / non violent confrontations in a huge number of situations. This is MASSIVELY scale-able and has huge application even outside of LOE (Military, hazardous job, etc)
So from a "who are we / what do we do / how do we make money" perspective, I like Wrap Technologies.
Time to look at some financials (this is where it gets a bit more iffy for me).
Time to look at some financials (this is where it gets a bit more iffy for me).
Revenue as reported in 2019 Annual Report:
2019: $696,790 (not in millions or thousands, that's total rev)
However, that is a MASSIVE increase from 2018, where WRTC reported just $23,150 in revenue.
This is (if I remember correctly) because only recently did they start sales.
2019: $696,790 (not in millions or thousands, that's total rev)
However, that is a MASSIVE increase from 2018, where WRTC reported just $23,150 in revenue.
This is (if I remember correctly) because only recently did they start sales.
So the revenue growth is good. However the operating expenses is what scares me a bit.
2018 Total Expenses: $3.34M
2019 Total Expenses: $8.89M
2019 Cash on hand: ~$14M
Roughly two year runway of cash before one of the following:
1) Big Loans
2) More Investors
3) Bankrupt
Or
2018 Total Expenses: $3.34M
2019 Total Expenses: $8.89M
2019 Cash on hand: ~$14M
Roughly two year runway of cash before one of the following:
1) Big Loans
2) More Investors
3) Bankrupt
Or
If sales increase significantly, cash burn will be less (and maybe they can turn a profit!).
So how has 2020 been so far for orders?
See for yourself
https://wraptechnologies.com/media/?=undefined
Lots of orders in the US and (this is important) Internationally.
Also, let's look at Q1 Rev.
So how has 2020 been so far for orders?
See for yourself
https://wraptechnologies.com/media/?=undefined
Lots of orders in the US and (this is important) Internationally.
Also, let's look at Q1 Rev.
In Q1 2020, WRTC reported $689,437 in total rev. Up from $117,811 Q1 of 2019!
Massive increase. Q1 had more rev than all of 2019!
Based on the news board, Q2 sales are just as high, if not higher.
Expenses Q1
2019: $2.67M
2018: $1.56M
Rev outpaced expenses by a LONG shot.
Massive increase. Q1 had more rev than all of 2019!
Based on the news board, Q2 sales are just as high, if not higher.
Expenses Q1
2019: $2.67M
2018: $1.56M
Rev outpaced expenses by a LONG shot.
The last question in my mind: is it a buy now? Or wait until earnings?
WRTC reports Q2 earnings on 7/30 After Hours. So buy now or wait? Good question . . . This is WRTC price action over the last few months
WRTC reports Q2 earnings on 7/30 After Hours. So buy now or wait? Good question . . . This is WRTC price action over the last few months
It was pretty range bound between $3.3 and $8 until the recent breakout, and seems to have support/resistance zones at the following areas:
$14 (resistance for now)
$10 (support for now, with weak support at $11)
$8 (next support zone)
$3-4 (final support zone)
$14 (resistance for now)
$10 (support for now, with weak support at $11)
$8 (next support zone)
$3-4 (final support zone)
Here is where it gets a bit tricky . . . WRTC, at current price, has a market cap of $365M
Last years revenue was ~$650k
That's a multiple of 561.
So assume 2020 rev will be ~$3M (based on Q1)
That is still a multiple of 121.
That being said . . .
Last years revenue was ~$650k
That's a multiple of 561.
So assume 2020 rev will be ~$3M (based on Q1)
That is still a multiple of 121.
That being said . . .
Fundamentals do not (always) a stock price make, and good outlook can cause investors to keep a price higher until earnings (eventually) catch up.
For me, I will be taking a small position on WRTC with this dip, but wait until after earnings before taking a full position.
For me, I will be taking a small position on WRTC with this dip, but wait until after earnings before taking a full position.
As always, this is not financial advice, BYOR (bring your own research), etc. etc.
