Bulova Technologies Group, Inc. (OTCMKTS:BTGI) Rockets Up The Charts

In our last piece, we noted that Bulova Technologies Group, Inc. (OTCMKTS:BTGI) shares had moved up on high volume after its subsidiary BT-Twiss Logistics acquired Global Frozen Trucking Inc, a Pinellas Park, Florida based refrigerated trucking company. More specifically, we said that this subsidiary was an exciting and highly diversified company that had been growing at a high pace by acquiring business opportunities in different sectors. In our opinion, the market started to wake up and was finally celebrating the moves. In this new update, we will make a review of what happened recently and explain another jump that you can see in the following chart. Another acquisition? No, something better, but you need to read until the end.SourceRecent DevelopmentsLet's recap a little the company’s background. The company has three operating subsidiaries; BT Twiss LLC, Bulova Technologies (Europe) LLC, and Bulova Technologies Machinery LLC. Bulova Technologies provides munitions, weapon systems, and combat systems and has accumulated expertise in the defense industry. Bulova Technologies Machinery produces CNC products, which can be seen here, which are distributed in the United States and Canada. Finally, BT Twiss is a trucking company with over 105 trailers, and 90 trucks that provide refrigerated trucking services for the food industry and others.As we promised in our previous report, the Q2 2017 results are out. The company achieved revenues of $6,259,160. Stephen L. Gurba, President, and CEO of BTGI, explained it in the following words:

“We are pleased by the results of this quarter and we look forward to an increase in our operations' revenue in succeeding quarters.” We are optimistic that revenues of $28,000,000.00 will be achieved by our fiscal year end of September 30, 2017" Source

And that was more or less the information contained in the press release. As we wanted to offer a deeper assessment, we checked the accounting books here. We saw that the net income was positive for the first time in the first quarter since June 30, 2016, which is positive, but was not noted by the press release. The company is cutting costs. As of September 30, 2016, the net income was $3,021, whereas it was $1,437 as of December 31, 2016. Thus, there seems to be a trend. We checked further and saw that the SG&A expenses were reduced during this time.How do we explain it? In our opinion, the new company acquired some businesses last year, but it is now when it has worked reducing overhead costs. It was really nicely done, as the whole group is now profitable. Were these numbers responsible for the share price jump? Yes, exactly, the numbers were released on May 31, 2017 and the market celebrated it the same day. In our opinion, these numbers are the result of the acquisitions made in the past, and the results are coming out now. Could this net income uptrend continue? Yes, if the company finds more hidden and unnecessary costs, the net income could grow even more, and may make the share price creep up even more. We could observe the reaction of other investment sites, which noted that the results were not expected. Have a look at this one:

"Investors loved the strong results sending shares of BTGI up a whopping 142.68% to $0.0068 in mid-day trading today on very high volume. To believe these revenue numbers were not expected by the investment community would be an understatement as investors piled in to this quickly growing multi-industry Company that has its toes in the medical, security, technology and transportation industries among other things." Source

This is not all true. Market participants, who followed this stock, like us knew that the company was preparing something big. We promised that the next 10-Qs were going to be good and this is what finally happened. Have a look at what we said in our last article. We knew that the growth was going to pay off soon.

"We are waiting for the latest 10-Q from the company, which will quiet the skeptics and get the stock moving even higher. This is phenomenal growth for any company. Because of this growth, we believe investors will be looking back wishing they had gotten on board at current levels. Shares will not be trading around the $.01 mark for much longer." Source

ConclusionWe told our readers in our previous piece that the subsidiary of BTGI, BT-Twiss, was growing at a high pace and skeptics will soon see it reflected in the financial accounts. It turns out we were correct. Why? The company had been working hard to reduce the SG&A expenses. Merging different companies creates many hidden and unnecessary costs. In this case, it seems that the company could find many overlapping expenses. Thus, the net income was positive for the first time in months. This is very positive. Thus, the market pushed up the share price with high volume when the last 10-Q was released. We believe that this is not over and the company may surprise again soon. Hence, be alert. We will be updating our subscribers as soon as we know more. For the latest updates on BTGI, sign up below!Disclosure: We have no position in BTGI and have not been compensated for this article.