Today, we are presenting a new business profile that seems to be assessed quite a bit recently. We are talking about Monster Arts Inc (OTCMKTS:APPZ), which develops smart device GPS and intelligent-location driven tracking software, with a particular focus on the Drone Aerial Vehicle space.What's happening?The trading volume spiked up recently to all-time highs. More than one billion shares changed hands in a very short period of time.In our opinion, it shows that many market participants commenced to study the stock closely and decided to purchase shares. A good question is why it is happening right now.Have a look at the chart before we provide our explanation:
Three years chart for APPZ
1 month chart for APPZ
There is a new CEO and a new pathOn October 23, 2017, the previous CEO resigned.Did the market react to the news?No, it didn't because he has not left the post as a result of any disagreement with APPZ or on any matter relating to its operations, policies, or practices. We believe that the market appreciated this fact and focused on studying closely the business profile of the new CEO elected, Michael Gelmon, who has, in our opinion, a lot of business expertise.We appreciate his business expertise and his entrepreneurial spirit. He has held the following posts in other institutions in which he still has important roles. Have a look:- Founder of Gelmon Brothers Real Estate Consultants. He is still partner of the firm.- Chief Executive Officer, President and Secretary of Solar Energy Initiatives, Inc. since February 19, 2013.- Chief Executive Officer of Novation Holdings, Inc. since July 24, 2011. He is serving as its President.- From 1993 to 1997, he served as Director and Head of Acquisitions and Real Estate for Domino’s Pizza of Canada Ltd.That's not all.He has experience in corporate finance and corporate governance. He has served as consultant for Proteus Capital Corp., a Mutual Fund specializing in the Inter-Bank Foreign Exchange markets. He also practiced Real Estate law and is member of The Law Society of Alberta. Finally, he also practices law with his brother in a law partnership, Britannia Law Firm.What's our take?Restructuring phases usually bring new names and change many aspects inside companies. Stockholders usually appreciate them, as these phases usually are followed by share price increases. In our opinion, the fact that the trading volume is increasing seems to show that some market participants saw an opportunity here. Hence, we believe that checking this company at this specific time should be very beneficial for our readers.The merger with Flight Time Aviation Group, Inc.On December 12, 2017, Monster Arts, Inc. released a non-binding Letter of Intent with Flight Time Aviation Group, Inc., an Albert Canada corporation. Under this new agreement, Monster Arts, Inc. is seeking to acquire all the assets associated and related to Flight Time’s cloud-based aviation application and software branded as CaminoAero.What's the new business model?The target company provides a secure cloud-based aviation application offering a single point to enter flight activities, which seamlessly integrates CaminoAero’s Pilot Flight Log and Aircraft Log. The system provides flight time and air time calculations and is neatly displayed on the NavDisplay. That's not all; check the following innovations presented by Flight Time Aviation Group:"The application also allows for the complete tracking of aircraft to improve the efficiencies along maintenance tracking. The NavDisplay is well organized to illustrate the maintenance events that are coming due and is used to support planning for shop visits and to simplify the oversight of an aircraft's maintenance. Further, the application allows for the aircraft activity to be easily transferred to new owners." SourceWhen are the companies expected to sign a more definitive agreement?A Definitive Agreement is expected on or before December 31, 2017. This means that we need to be very alert around this date. If the company releases a new agreement, the share price could be pushed up by the market. In our opinion, this is the biggest catalyst on the price.Social MediaThere is another interesting fact that we need to point out. The social media activity related to this name is quite large, which may explain the recent increases in trading volume.Many comments could be seen on the iHub Forum on December 22, 2017.
Have a look:
Social Media Activity - Monster Arts Inc OTCMKTS:APPZ
In addition, market participants also commented on the last share price movements on the Yahoo Finance Forum.In our opinion, this fact shows that many people have high expectations from APPZ. Market participants may be wrong or right, but we believe that no matter what happens, we need to follow this name.ConclusionCurrently trading with a market cap of $0.3 million, APPZ is an exciting story among small caps. We believe that the new CEO has a lot to do, like filing all the regulatory filings to the SEC and reorganizing the company. But, we also think that his expertise in Business Law will help him execute this task. In our opinion, the market could push up the share price if the company sends new quarterly reports and they contain good news. Thus, be alert on this matter as well.To sum up, there is a lot to like on this name. Be sure to follow closely its next developments!We will be updating our subscribers as soon as we know more. For the latest updates on APPZ, sign up below!Disclosure: We have no position in APPZ and have not been compensated for this article.Image courtesy of Karl via Flickr







