Petrone Worldwide Inc (OTCMKTS:PFWI) Is Today's Stock Focus

Petrone Worldwide Inc. (OTCMKTS:PFWI), which operates assets in the hospitality industry, surprised the market recently when it released its most recent 10-Q. The share price increased after the release of this report, thus we became interested and commenced researching the company.We saw that the company signed new agreements, which indicates that it is growing. Additionally, we saw that many big stakes in the company changed hands in this recent quarter. The CEO noted them. We will provide all the details in this article, but before that, please have a look at the recent share price action. Don't forget to note the increase in volume. 2 Month Chart For PFWIBusinessAccording to the annual report, PFWI is focused on the import, export, and distribution of "commercial grade tableware products, decorative hotel guest room amenities, lavatory and bathroom fixtures and furniture, food and beverage service items and accessories." The target markets are Asia and Europe. The company counts brands such as Front of the House and Room 360. Brand PortfolioThe most relevant person in the organization is Victor Petrone, who holds 20 years of experience in building a network with players in the sector. Additionally, the company has sales and marketing and product development experience in the hospitality industry in Europe.The following hotel brands are key accounts of PFWI: Marriott Hotel Brands, The Four Seasons Hotel & Resorts, Hilton Worldwide, Hyatt Hotels & Resorts, Starwood Hotel & Resorts, and Fairmont Hotel & Resorts. Furthermore, the company also works for small and boutique brand hotels.The company has an ambitious plan to grow the business. So far, the company is financing its operations thanks to equity offerings, but intends to raise additional funds and finance acquisitions once the company is cash flow positive. Additionally, the company says in the annual report that it will repay debt with cash or through issuance of equity. We appreciate this level of determination in a $1 million-market-cap company. It shows that management believes in the future of its operations.Recent DevelopmentsOn August 14, 2017, the company announced a Letter of Intent with Bio-Clean international, Inc., under which it will distribute bulk water in water stressed regions. PFWI will use its logistics platform under exclusivity of negotiated long-term ‘Water Purchase Agreements’ from two governmental renewable fresh water sources. The CEO said that 1.1 Billion people will receive potable water thanks to the agreement. Finally, it was added that the company is using all the resources to "create momentum and meet market demand head on."On August 21, 2017, the market got to know that PFWI is launching a new website for retails sales. In the press release, it was noted that it would be a dynamic new ecommerce website. It could be found on petroneworldwide.com. Additionally, it was said that it would be ready in approximately 90 days. If the new site grows revenues, it will impact the stock price.Regarding the most recent filings, on July 24, 2017, the market got to know that the company had increased authorized capital stock from 910,000,000 to 2,510,000,000 shares, of which 2,500,000,000 will be common stock and 10,000,000 will be preferred stock. We want to point out that the company did not increase the amount of authorized capital stock as the total amount of outstanding shares is still the same. Hence, the share price did not react to the news.In another filing released on June 6, 2017, we could read that Victor Petrone was selling shares of the company. This filing was an announcement to note his intention to sell shares, but not the confirmation of any sale. After this announcement, we did not find any more information that would note that he sold shares to the public.Additionally, on September 6, the new 10-Q was released. The most significant fact highlighted by the company was that the total revenues for the three months ended June 30, 2017 increased by 98% as compared to the same period in 2016. The market pushed up the share price following the report. Regarding the balance sheet, the most significant items are the Net Receivables at $211,000 and Other Current Liabilities at $847,000. A full version can be seen on this website.ConclusionPFWI released its most recent quarterly earnings release, which seemed to impress the market because the share price was pushed up the following day. Thanks to this news, we had the chance to review the company, which seems to have an interesting business plan, well-known clients and expertise in the sector. We will need to check the next steps of the company, but from here everything seems very well prepared. Additionally, the company signed several Letters of Intent with different companies, thus we will need further updates on these LOIs as they become contracts. New deals may move the share price. To sum up, PFWI is one company that we will be following closely.We will be updating our subscribers as soon as we know more. For the latest updates on PFWI, sign up below!Image courtesy of dbjtgomez via FlickrDisclosure: We have no position in PFWI and have not been compensated for this article.