RJDG: Under the Scope for Long-Term Investment
Since the creation of this site, we have done only two blog packets on OTC stocks we considered to be long-term investments. Those two stocks were BYOC and SGDH. Both of those stocks we expect to continue to be very successful. RJDG is the third OTC stock we are putting up to the plate to see if it checks out. In our other blog packets for long-term investments we stick to a strict criteria of technical analysis to draw a conclusion. We found very detailed similarities in the technical analysis of all three being RJDG, SGDH, and BYOC. Lets go ahead and take a look at RJDG and see if we can check all those boxes that we believe are required.
Part 1 Technicals :
[_] ACCUMULATION INDICATOR:
- What we see here is a steady rise in accumulation. Even on the days the stock closed red, the accumulation was still rising. This steady rise tells us that the tradable shares in this float are getting fewer and fewer. More and more traders/investors are taking positions and holding long. This can also be seen via L2. When a stocks tradable shares are getting fewer, L2 will get thinner with bigger spreads represented below:
- Accumulation, to me, is the “it” factor for a long-term stock on the technical side. It is from my perspective the most important indicator for long-term OTC positions. Every single successful OTC long I have been on had an extremely strong accumulation. You know you are on something solid when you see that accumulation rising on red days.
[_] CMF INDICATOR:
- CMF, to me, while not being the most important, has always been an indicator I use on long-term positions to monitor buy/sell pressure. I like to see the steadiness shown on an uptrend and that same steadiness remain on the CMF. As we can see in the above CMF, there is balanced buy/sell pressure –meaning even as the stock goes up there are buys to meet those sells.
[_] OBV INDICATOR:
- OBV is extremely important on a long-term stock for a couple reasons. OBV represents volume. Stocks need volume in order to increase further uptrends. OBV can also prove the strength of a trend. OBV continuing to increase/maintain even as the price increases is one of the most bullish signs a stock can see over a long period of time.
[_] ADX and DI +/-:
- ADX is the epitome of measuring trend strength. Some would argue maintaining the long-term trend is the key aspect of any long-term investment. The ADX on this is one of the strongest I have seen. ADX is sharply climbing along with DI + –creating an enormously strong trend. This tells me that in the long-term, this upwards trend will be hard to stop.
Part 2 Fundamentals:
What I love about RJDG is that it’s the definition of a near-perfect storm. That stock I always talk about being the perfect combination of fundamentals and technicals. I personally believe if we are talking pure technicals and fundamentals of a stock there are very very few that beat out RJDG.
[_] SHARE STRUCTURE
- RJDG has a perfect share structure. With the conclusion of the recent dilution, they are sitting in the ballpark of most likely a 100 million float. To give you an idea, BYOC has 709 mil float trading at .10. SGDH a 52 million float trading at .23. RJDG closed at .017 today (Friday 09 February 2018). This is just another reason why the idea of RJDG trading in the .10+ range is completely realistic share structure wise.
[_] BALANCE SHEET
- From my perspective, the financials of RJDG are some of the best I have seen for a company on pink sheets trading .017 per share. Showing total assets of 2 million plus. It is not easy to find OTC companies at .017 with these kind of assets on the OTC actually proven.
- All around impressive financials. Bringing in over 1 million in revenue in one quarter with a 465,000 Gross Profit! Seriously, good luck trying to find an OTC company at .017 with this share structure bringing in a gross profit.
Part 3 The CEO :
This is possibly the toughest part of any DD process for a long-term investment in the OTC. In terms of RJDG, when I see a company being transparent, putting in the financials, and turning a gross profit my confidence grows. Management is the definition of doing it correctly right now. Take one look at their Expected 2018 Events PR and my confidence remains very high for where this CEO will take RJDG. As long as the CEO remains transparent, does updates when necessary, etc –I expect RJDG to take care of itself much like SGDH and BYOC have and will continue to do. Based off the numbers management expects in 2018, being almost 10 million in revenue with half of that in profit, RJDG can easily be trading double digits soon.
Final Word/Opinion on RJDG :
Based off revenue/assets for 2017 I would say RJDG is worth around 9-10 mil as a company. RJDG is currently trading at about a value of 3.5 million. So from my perspective RJDG should be trading at a minimum of .06+. With the projections of 2018 by management being nearly 10 million in revenue with half of that in profit, RJDG could easily be trading in that .10 – .15 cent range. Based off technicals, fundamentals, and if the CEO follows through like he has, I do believe RJDG could be trading .15 in 2018. To end this packet as always, remember this is only my opinion of what RJDG could accomplish if they did maintain everything mentioned here to the highest degree. The fundamentals have to remain solid, No dilution, CEO follow through, and strong technicals will equal a very bright 2018 for RJDG.
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Technical Analysis/Opinions of Alex S; Owner/Founder
You can follow him on Twitter @SUNNYLAND24
Compiled/Proofread by Noëlle H; CTO/Site Administrator
You can follow her on Twitter @subliMINXal
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