Solis Tek Inc (OTCMKTS:SLTK) is a rising superstar in the green sector. They have vertically integrated their entire business model and even diversified to other related sectors to lessen their market risk. Let us shed light on this very interesting company whose product portfolio includes efficient indoor horticulture lighting, which has applications not only for the legal cannabis market, but also reaches out to take the aquaponics sector. Now that’s a bright future!
SLTK has the proverbial finger in every pie for the green industry; they have operations beginning from research and then manufacturing and then retailing consumers. They market their products to institutional buyers and also cater to end consumers. While they are more well-known in the cannabis sector, they also have branched out to horticulture, specifically aquaponics, with their new line-up of products.
Another piece of news that makes Solis Tek Inc (OTCMKTS:SLTK) such a rising star is their growing market. Regarding bottom-line financials, we can practically hear the enthusiasm and optimism of management. Dennis G. Forchic, Chief Executive Officer of Solis Tek, on quarter financial standings, reported:
“In the first quarter of 2017, we delivered record top line revenue and significantly improved gross margins. Our strong revenue performance drove record gross profit for Solis Tek and although net income was negative according to GAAP, on a Non-GAAP adjusted basis we were almost break-even for the quarter.” He further stated, “As a company focused on providing products and solutions to commercial and non-commercial cannabis cultivators, we are uniquely positioned to capitalize on the rapid growth of the cannabis market. Solis Tek is a strong nationally recognized brand in lighting for the cannabis industry and has established itself as a supplier of lighting to top growers for nearly a decade. Our first quarter of 2017 was highlighted by a number of new clients acquiring our digital lighting products as well as a number of significant expansion projects from our existing customers. I believe Solis Tek is poised to continue to build market share within the cannabis industry and I am excited to have joined the Company at an inflection point in its growth and path towards maximizing its potential.”
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With the incoming legalization of recreational marijuana in Nevada this July, we can expect more revenues for SLTK.
Their financial history also shows an increasing pace. According to the SLTK press release:
“…reported record revenues for the year ended December 31, 2016 of $8,563,751 compared to revenue of $7,713,456 in 2015. This represents an 11% increase in revenue over 2015. Gross profit for the years ended December 31, 2016 and 2015, was $3,123,859 and $2,719,036, respectively. The gross profit increase of $404,823 or 15% was primarily due to the increase in revenue.
Business and Financial Highlights for 2016
– Company had revenues of $8,563,751 for 2016; up 11% from full year 2015;
– Gross Profit of $3,123,859 for fiscal 2016; up 15% from full year 2015;
– Gross Margins increased to 36.5% up from 35.3% in 2015;
– Cash balances increased 159% year over year;
– Won Dope Magazine’s 2016 Best Lighting Company Award.”
SLTK is still in ranging mode; there is a bollinger band squeeze and lessening of volume after the stock broke the near-term resistance of 1.900 and has made a new support line around 1.6375. Stock is currently trading at 1.72 with RSI at 49, supporting the view that it is still ranging. We could see a big impact come July when legalization for Nevada pushes through. Many investors will be in accumulation phase whenever they see opportunity to buy this stock , namely when it hits support lines. For continuing coverage on shares of $SLTK stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!