Provision Holding Inc (OTCMKTS:PVHO) Explodes Up The Charts

Source: lexicommgroup.com

After recommending Provision Holding Inc (OTCMKTS:PVHO) last month, "The Wolf of Penny Stocks" came out again and recommended the stock again this month. As a result, the stock exploded on higher volume and broke through key resistance. Helping to drive this price action has been a series of positive press releases from the company pertaining to its 3D Holographic Kiosks and the closing of a $4 million private placement.

PVHO is the leading purveyor of intelligent interactive 3D holographic display technologies, software, and integrated solutions for both commercial and consumer focused applications. Provision’s 3D holographic display systems represent a revolutionary technology that provides the projection of full color, high-resolution videos into space detached from the screen, without any special glasses. Provision is currently the market leader in true 3D consumer advertising display products being implemented by innovative, consumer-focused companies.In the third quarter, total revenues were $1.17 million compared to $49 thousand for the similar quarter last year. The Company also reported a net profit of $82 thousand for the quarter ended September 30, 2015, compared to a net loss of $321 thousand for the same period last year. The return to profitability is a direct result of higher gross profit and a gain on the forgiveness of debt partially offset by higher expenses due to increased business activities.

The most recent news from the company said that it had installed another 250 3D Saving Center Kiosks. These installations represent the next phase of an agreement with a key retail partner, one of the largest retail drugstore chains in the United States. With a total of 450 installed kiosks, Provision has expanded its presence in New York and Los Angeles and has opened new markets in Philadelphia, Detroit, and San Francisco.

Provision’s 3D Savings Center Kiosks generate eye-popping, three dimensional, holographic videos and include exclusive loyalty card information and promotions. The 3D Savings Center kiosk contains Provision’s patented and award-winning 3D holographic display, which has proven to capture the interest and attention of retail customers. The 3D holographic display projects videos in front of the screen without the need for any special glasses or discomforting eye stress. Each kiosk also has a 2D interactive touch screen that provides consumers with quick access to promotions, rewards, coupons, or other retailer specific programs such as loyalty cards. Brand marketers will be able to showcase their products via 3D advertising and engage viewers via the interactive touch screen interface.

Just recently, Intel Corporation (NASDAQ:INTC) endorsed Provision's 3D Holographic Kiosks. Intel's report titled “Tomorrow’s Digital Signage, Today with 3D Holographic Kiosks” stated that:

“Intel technologies and Provision 3D holographic kiosks lead to more focused campaigns and higher sales for consumer brands and retailers."

Earlier this month, PVHO issued a total of $4 million in a private placement financing of 12% Series A Senior Secured Convertible Promissory Notes, convertible into shares of the Company’s common stock at a conversion price of $0.10 per share. Each note purchaser also received, for every $1,000 in promissory notes purchased, warrants to purchase 2,000 shares of the Company’s common stock at an exercise price of $0.15 per share for a period of five years after the warrant’s issuance.

While this financing will help fund the company's growth, it will increase the outstanding share count and dilute existing shareholders. PVHO said that "the financing should assist in the Company’s growth beyond its current installations of approximately 450 3D Savings Center kiosks with a national retail customer. The Company plans to have 1,000 3D Savings Center kiosks installed by the second quarter."

Currently trading with a market cap of $12.52 million, PVHO has the potential to be an exciting name in small caps. Many shareholders have been waiting years for the company to breakout. Now that it’s shipping more 3D Savings Centers, it might just actually happening. One things for sure, the stock is seeing more volume than last year. For continuing coverage on PVHO and our other hot stock picks, sign up to Insider Financial today and get our free penny stock newsletter!

Disclosure: We have no position in PVHO and have not been compensated for this article.