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IMD Companies Inc (OTCMKTS:ICBU) Looks To Be A Hidden Gem Among Penny Stocks

IMD Companies Inc (OTCMKTS:ICBU) Looks To Be A Hidden Gem Among Penny Stocks
Written by
Jarrod Wesson
Published on
November 10, 2017
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Today, we need to talk about a new business profile that is drawing the attention of the market recently.It is called IMD Companies Inc. (OTCMKTS:ICBU).We appreciate the financial situation of this company. It has a solid balance sheet and is already showing revenues according to the most recent annual report. Additionally, we appreciate that the company is making a lot of efforts to become fully reporting.Furthermore, we believe that the type of businesses being acquired by ICBU will boost future growth. The company has shown interest in biotech investments, marijuana industry, and mining among other sectors.Regarding the stock chart, we believe that the market is becoming more and more interested in the company. The increasing volume seen in 2017 seems to prove that thesis. More than 100 million shares have changed hands recently.Have a look at it: YTD month chart for ICBU Two months chart for ICBUBusinessiMD Companies, Inc., (OTC: ICBU), is a Florida holding company. It has recently re-positioned to acquire businesses in the "hydroponics, Hemp Protein energy bars, and mining industries."We had a look at the company materials and following is said about the business objective: "growing the Hydroponics business while strategically seeking to acquire new businesses and create other business alliances, which generate increased revenues and earnings."The companies owned are the following:

  • KRSNA MINERALS: it is a mine in India with over 600 acres of mining claims, which are currently mining manganese and Iron ore metals.
  • R-Quest Hydroponics, Inc.: it is a manufacturing company headquartered in Placerville, California. It is the owner of the Environmental Master Controller EMC-5000 system, which is able to provide constant management for grow room facilities for indoor gardens.
  • Optimum Mobile Imaging: it is a business, created in 2006, delivering state-of-the-art mobile imaging technology to patients in Arizona. It owns an Independent Diagnostic Testing Facility, which permits reimbursement by Medicare and has allowed OMI to contract with private insurance providers nationwide.
  • PCI HeartScan: it is a business that "provides state-of-the-art ultrasound images and sophisticated quantitative analyses to provide a highly sensitive assessment of cardiovascular functioning." It seems to be quite an innovative business model. The company owns an algorithm based on the findings of twenty years of research and over 100,000 subjects to detect risks of strokes and heart attacks.

Recent DevelopmentsThe company has retained BF Borgers CPA PCAOB, an accredited accounting firm. The goal is to become a fully reporting company with the SEC. This was announced in January 2017.In the year 2017, the company released quite a large amount of developments. But, those who contributed to spikes in volume were the following ones.On March 8, 2017, the company released that subsidiary KRSNA Minerals reported revenues of $8,153,863 and net profits of $536,555 for the fourth quarter 2016. Additionally, it was noted that KRSNA had commenced to work with China for Manganese and Iron Ore, which could explain the fantastic results.Please check the following words of Richard Wilson, CEO of ICBU. Note that he talked about trading in the Nasdaq:

"Our goal is to meet all the requirements to become a Nasdaq small cap company and with these fourth quarter revenues and profits we are well on our way." Source

On March 16, 2017, the company noted a purchase order from Hong Kong based company for 100,000 metric tons of Magnesia Chrome Powder. The order is valued over $60 million and was included in the fourth quarter of 2016. The company noted something else that may have interested the market even more; KRSNA Minerals revenues and profits are trending much higher for the first half of 2017 compared to 2016. To sum up, expect the next quarterly revenues to surprise the market. This is what the company seems to be telling.Furthermore, on May 24, 2017, Anything Technologies Media Inc's. (OTC: EXMT) released that its subsidiary ISGP has acquired IMD Meds, Hydroponics, CBD, and Hemp Energy Protein Bar division for 125 million common shares of ISGP stock. The transaction seems to be very good for ICBU, as if these shares are sold, cash can be distributed to the shareholders.Additionally, we need to note that ANYTHING TECHNOLOG (OTCMKTS:EXMT) owns International Sustainability Group Inc. (OTCMKTS:ISGP). Thus, until ICBU sells shares of these companies, good news may make the share price increase. The volume spike that was seen in November was a clear example.On November 1, 2017, the market reacted again when Anything Technologies Media Inc's. (OTC: EXMT) retired approximately $1.6 million of their debt in ATM to improve the financial liabilities of the company. We agree with the reaction of the market. The balance sheet looks much cleaner now and the financial risk of shareholders was reduced. As said, ICBU's share price reacted as well.FinancialsWe need to highlight here the strong balance sheet of the company. Other sites, like OTC Markets or Yahoo Finance, did not do so and many market participants may not be aware. It gives our readers an edge:

  • Cash: $0.05 million
  • Total Assets: $25 million
  • Total Liabilities: $11 million

Regarding the income statement, $7.6 million in revenues and a net income of $0.29 million were reported. This is good, as the company is returning value to the shareholders. Last year, the company did not generate profits and the revenues were just $0.09 million.ConclusionCurrently trading with a market cap of $1.5 million, ICBU is an exciting story among small caps. The company is recently showing strong financial performance. After the sale of a division, it acquired shares of another company. Thus, we believe that the amount of catalysts multiplied. If good announcements are released by ANYTHING TECHNOLOG (OTCMKTS:EXMT) or International Sustainability Group Inc. (OTCMKTS:ISGP), the share price may increase as well.To sum up, there is a lot to like on this name. The company is now on our radar screen.We will be updating our subscribers as soon as we know more. For the latest updates on ICBU, sign up below!Image courtesy of Shuchi Swami via FlickrDisclosure: We have no position in ICBU and have not been compensated for this article.

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