RealBiz Media Group Inc (OTCMKTS:RBIZ) Shows Upside Potential On Pivot

There's nothing like a good pivot to get a micro cap running, and we've just seen exactly that in RealBiz Media Group Inc (OTCMKTS:RBIZ). The company was trading for just $0.007 as the markets opened this week, but a Thursday announcement sent it soaring out of the double zero zone to reach intraday highs of $0.14 – a 1,900% gain low to high. RealBiz stock closed out on Thursday at $0.08, so the company gave a bit back, but it's still up close to 1,000%; a run well worth taking notice of.So what's driving the action?As mentioned, RealBiz has just made an announcement that represents the first major step as part of a fresh (and seemingly now, dominant) operational arm for the company. Over the past quarter or so, RealBiz has undertaken what it calls in corporate communication as deconsolidation. Basically, the board of directors resigned, a fresh board (one of which was the company's current CFO) and the company split from split from an affiliation with a company called Monaker Group.A couple of weeks ago, RealBiz announced it was bringing in a new CEO, a food management and distribution industry exec called Anshu Bhatnagar, and that it was shifting into the Fast Moving Consumer Goods (FMCG) and Consumer Packaged Goods (CPG) sectors.Previously, RealBiz made real estate videos. This is about as far removed as you can get from FMCG, and with the new CEO experienced in the latter (and from what we can tell, not the former), we expect the vast majority of sales will derive from the new focus.So all this took place, new CEO, new focus, new board of directors, but it didn’t really mean much from a market capitalization perspective, because there were no numbers to back it up. That is, until late this week, when the company announced a huge deal attributable to the food business.RealBiz has been awarded a contract to supply beef to the Gulf Cooperation Council (GCC) countries, which includes the United Arab Emirates, Oman, Bahrain, Qatar, Kingdom of Saudi Arabia and Kuwait. We don't know much about the deal yet, although the company has said it will put out some fresh information over the next several months. What we do know, however, is that the deal is valued at over $78 million, is fully negotiated, and will fulfill throughout 2017. Bhatnagar takes the helm on January 2, and the first shipments are set to commence on January 5.To add a bit of perspective to this situation, even after the quadruple digit gains seen over the last twenty-four hours or so, RealBiz is still only valued at a market capitalization of $59 million. That's less than three quarters of the value of this single contract.It's not all plain sailing. Cash on hand is pretty low (although this is likely set to change once the GCC revenues start to come in), currently sitting at $165K as of last count. Debt is a little over $1.1 million, which doesn’t weigh great against assets, but again, this is likely set to change once the beef deal gets under way.So what are we looking for going forward?Our primary focus, and we hope for this company's shareholders that the company's primary focus, is the FMCG operations. Here's a quote from the latest communication:

"The company will focus on international distribution of fruits, nuts, honey and meats. Mr. Bhatnagar's wealth of experience in distributing and manufacturing in the Middle East and GCC countries uniquely positions RealBiz for success."

This seems to suggest that the company's goals are aligned with what looks to offer the highest top line potential. We're also looking for some numbers related to the way FMCG is going to integrate into current operations. Big contracts are great, but only if you can deliver them profitably.At this stage, there looks to be plenty of run room left while RealBiz gets going on its running start to 2017. One to watch.We will be updating our subscribers as soon as we know more. For the latest updates on RBIZ, sign up below!Disclosure: We have no position in RBIZ and have not been compensated for this article.