Rjd Green Inc (OTCMKTS:RJDG) Running Up The Charts

Rjd Green Inc. (OTCMKTS:RJDG) is breaking out. After making a perfect accumulation pattern in 2017, the stock is waking up.As per our opinion, the shareholders and management were expecting the movement. After all, the year 2017 was full of great surprises. The most astonishing was the increase in revenue in the last quarter. It would have woken up anybody in the market. But, that was not all. Firstly, there was a revenue hike option of 10% to 15% from the acquisition of IOSOFT. Also, not at all less important, RJDG was working on transparency by hiring a new auditor. This fact and some other good stock catalysts were remarked on "Rjd Green Inc. (OTCMKTS:RJDG) Is A Low Float Runner." Check that article out. You will understand the current market sentiment. The 1-year chart for RJDGWhat is the stock returns? Taking into account the spike from the level of $0.01, the shareholders doubled the money. That's incredible even for a microcap stock. In our opinion, the market could have foreseen it. The volume has been sending strong signals since January. Those in the trading pits should have been shocked after the stock moved as much as 20 million shares. It is a 52-week record to be remembered. Well done Rjd Green Inc.Let's wait a minute to be sure that we don't lose anybody. It is critical to understand where RJD comes and what it does to understand what it has achieved. RJD Green was founded in 2009 and is headquartered in Tulsa, Oklahoma. The company acquires other growth companies within environmental services, healthcare management services, and construction / industrial specialty contracting.What's making the stock pop?Apart from the previous developments, the new announcements have been exciting. The list of news included a new COO, M&A conversations, a new product from IOSOFT, and a new 10-K.The company requested the auditing for the years 2016 and 2017, which is necessary to uplift the company to OTCQB fully reporting status. As of today, we could find the annual report for the year 2017. The auditor seemed to work hard for RJD. Additionally, in January, a lawyer certified that the company complied with the strict regulatory framework. The optimism from the market should come from this fact. We should remember that the 10-K for the year 2016 could be a new catalyst for the stock. Its announcement could make the stock run. Be ready.Did the company not acquire new business? It did not happen. However, something even more interesting may be going on. In August 2017, RJD noted negotiations with a Mid-West firm. Read the following, and form your own opinion:

"The firm formed in 2006 has established an extensive recurring-revenue client base that could offer potential business opportunity for the existing healthcare services holding, IoSoft Inc. RJD Green management feels an acquisition in this sector will be beneficial for mutual business opportunity, and offers support to the division's revenues and profitability, while IoSoft continues to capture contracts for services that will initiate services in 2018." Source

What's our take? We believe that the acquisition rationale makes sense. With the software from IoSoft. If RJDG acquires or hires a healthcare consulting firm, the revenues could multiply. That's not all. The company will not have to rely on external distributors to commercialize IoSoft software platform. Thus, profit margins could be drastically improved. Additionally, RJDG released something even more interesting regarding IoSoft. In another press release issued in October, the company provided another hint. The new director added to the Board, Bryan Porto, will help in new acquisitions. This is what you need to know:

"Mr. Porto brings extensive experience which can be utilized in our immediate future in regards to bringing forward IoSoft Inc.'s software platforms; and in the long-term as acquisitions are brought forward and operations are assimilated into the RJD Green holding company business model." Source

The addition of Mr. Porto was not the only recent incorporation. In January, RJD also elected a new COO. This new executive is Mr. Niblett, who brings expertise from big companies like Dominion Energy, Texaco, Shell, Energy Transfer, and Sunoco Pipeline LP. The market should have appreciated this new profile. The fact that he has experience in big corporations means that the company is finally achieving a reasonable level of growth.Annual Report - The performance was far below management’s expectationsUndoubtedly, the revenue reported for the year 2017 did not contribute to the share price spike. RJD's revenue was equal to $3,714,472, but the net operating profit was $463,791. The problem was the delayed launching of the IoSoft Division’s new software platforms that were expected to be launched in 2017:

"The delayed launching was due to latest regulations for application of their services in the banking and healthcare sectors, which created an unexpected completion time (over twelve months) for the qualifying processes of these regulations." Source

There is more. Due to this issue, the company stopped planned acquisition opportunities. They were all delayed until the IoSoft launch was completed.On the other hand, the company noted that initial contracts are being serviced creating additional revenues. Thus, the management is expecting "substantial revenue" for the year 2018. The 2018 revenue forecasted is $9,680,026, while the net operating profit is predicted to be $4,356,011. Additionally, please note that RJD also highlighted that a new financial advisory firm had been hired. This means that the new acquisitions’ plans are serious. When a company is ready to pay bankers juicy fees for their services, transactions seem a sure bet.ConclusionCurrently trading with a market cap of $4 million, RJDG is an exciting story among small caps. With $2.3 million in total assets and only $1.2 million in total liabilities, the balance sheet position is stable. Also, the company has reduced its debt and has shown $0.2 million in cash. The new big question is the way the new transactions will be financed. The market will be quite interested, as it could determine the future of RJDG.To sum up, be sure to study this name.Be sure to check out our coverage on RJDG!We will be updating our subscribers as soon as we know more. For the latest updates on RJDG, sign up below!Disclosure: We have no position in RJDG and have not been compensated for this article.Image courtesy of Sandra Donoso via Flickr