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$RJDG - Will the RUN Continue?

OTC:RJDG   RJD Green Inc.
As a holding company, RJD Green, Inc. (OTC: RJDG) seeks merger and acquisition opportunities in companies with the potential to grow significantly in their market niche. After surging roughly 200% this week, RJDG could be one of the best penny stocks to buy now ahead of its upcoming catalysts. Many investors are eagerly anticipating the company’s PR this month which could send the stock further, with this in mind, RJDG stock could be one to watch this week.

RJDG Fundamental Analysis
Through its business model, RJDG pursues merger and acquisition opportunities with companies generating revenues of $5-$20 million annually. These M&A targets are primarily in the healthcare services, environment, and construction services sectors which experience significant growth. In this way, RJDG is well-positioned to grow its revenues thanks to its exposure to these growth sectors.

RJD Green Healthcare Division
Aiming to capitalize on the rapid growth witnessed in the healthcare services industry, RJDG has established h its RJD Green Healthcare Division. This division has relationships with several service providers within the healthcare industry and most major hospitals throughout the US.

With the goal of acquiring service companies that reduce costs and boost management capabilities in the healthcare industry, the division’s first acquisition was IOSoft. Operating in the $4.4 billion medical claims processing services industry, IOSoft offers a cloud based system – ioSoft Suite – that features a number of software packages. This software is a revolutionary system since it is able to process claims in real-time in seconds and enhances communication between the plan administrator, the service provider, and the patient.

By using this platform, the healthcare sector could solve the problems found in 7.5% of health claims – representing a market worth $280 billion annually. With this in mind, integrating IOSoft’s software with healthcare providers could revolutionize claims processing. Considering this platform’s potential and IOSoft’s team’s relationships with more than 1 million healthcare providers, RJDG has the potential to realize record revenues from this one-of-a-kind platform.

Considering the platform’s potential, the subsidiary received two orders from the insurance and consulting sectors to provide them with IT services and software support. In addition, IOSoft received two additional corporate agreements for the use of services offered by ioSoft Suite’s software platform. As the platform is beginning to see more interest, some investors are bullish RJDG stock could be one of the best penny stocks to buy now in anticipation of its long-term growth

Meanwhile, RJDG is looking to expand further in the healthcare sector as the company has been exploring acquisition opportunities with medical billing companies since last year. It appears that these acquisitions are planned for 2022. Since this sector offers 20%-30% EBITDA earnings annually, this could be a very profitable opportunity for the company. Currently, RJDG is in ongoing talks with potential equity partners to raise the funds required for acquisitions without facing high-risk financing terms. In this way, RJDG has the potential to grow its business without dealing with toxic funding.

Silex Holdings
RJDG’s construction services division – Silex Holdings – is also expanding through acquisitions of companies related to niched building material products and services as well as industrial contracting. This division’s first acquisition was a manufacturer and installer of kitchen and bath products – Silex Interiors – which offers services targeting the niche between Home Depots and local contractors.

This subsidiary is expected to expand into major markets across the nation through acquisitions, internal expansion, and franchising. With this in mind, Silex improved its manufacturing capabilities to increase its production and quality control. In this way, Silex has the opportunity to double its commercial contracts and realize an additional $2 million in annual revenues. Given that Silex could operate a minimum of four owned locations, as well as 12-18 franchise locations nationally, RJDG appears to be well-positioned for further growth in this sector.

With this in mind, Silex has been awarded a number of contracts this year. Back in January, Silex was awarded three commercial contracts worth $379 thousand for completion this year. As well, Silex received a $259 thousand contract to provide and install cabinets for a multi-family project in Arkansas which is expected to be completed in Q4. As this cabinet contract is the first of multiple upcoming cabinet projects being bid on by the commercial division, RJDG stock could be one of the best penny stocks to buy now in anticipation of these potential contracts.

On this note, RJDG’s CEO – Ron Brewer – shared that “Silex’s success in project awards within the commercial sector reflects our ongoing regional growth, and the continuing diversification of the SHI targeted business focus”. Silex’s potential for growth appears strong as the division targets multiple markets across 5 states and establishes new client relationships.

Earthlinc Environmental Solutions
Focused on providing solutions for environmental issues in corporates and small businesses, Earthlinc Environmental Solutions has three patented technologies to offer to its clients. The most notable technology is Animal Waste Management which is developed to venture into the waste processing market on commercial chicken and hogs farms. This technology addresses a major environmental problem facing the commercial poultry and hog industries.

By controlling the liquid, solid, and gas waste generated by these industries, this technology is able to create an odorless, clean, as well as bacteria free by-product that can be utilized for animal feed filler. At the same time, this would allow water to be re-used as ground water in farms. With this in mind, this technology could receive more interest as it is competitively priced with the expense of waste removal. In this way, RJDG is positioning itself as a leader in this industry.

To facilitate more growth for this division, RJDG acquired an industrial property to act as an initial animal waste processing facility and was designed to allow for two separate operations on the property. The first project is an animal waste processing facility developed to create eco-friendly and cost saving processes and services. Meanwhile, the second project is a waste oil recovery facility that will utilize the division’s previously acquired processes to increase the efficiency of the oil recovery process and return a higher ratio of salable oil recovery.

In light of this division’s patented technologies, Earthlinc was selected by Agrico LLC to oversee the environmental services and requirements for a forestation land program in Belize. Since the company now has global operations, RJDG could be one of the best penny stocks to buy now as it continues to expand globally.

Management
Although the company’s fundamentals and business are sound, many investors believe the most impressive feature of the company is its management team. As the company’s CEO, Ron Brewer has substantial experience in merger and acquisition representation through his time as a Managing Director of Southbridge Advisory Group. Brewer has brought his experience from across several business sectors such as health services, energy, environmental, and technology as well as manufacturing and distribution to the company. Moreover, Brewer served as president of Mid-Continent Companies which grew ten times its original size from 1980 and 1990.

In addition, RJDG’s COO Jerry Niblett has more than 19 years of experience in managing oil and gas operations for corporations and small-cap companies. Before joining RJDG, Niblett was a national director for Sunoco Pipeline LP and was responsible for the company growing its EBITDA from $37 million to $1 billion in 8 years alone.

However, CFO John Rabbitt is considered by many to be the most intriguing part of RJDG’s management. Rabbitt has extensive experience from working in multiple Fortune 500 companies including The Pillsbury Company and PepsiCo. He built upon this experience by working for 20 years alongside Forbes’ 102nd wealthiest person (2008) during which time Rabbitt was involved in acquisitions while serving in executive capacities for several multi-national subsidiaries. Additionally, Rabbitt played a pivotal role in helping MEI Corporation grow its revenues from $20 million to $850 million over 9 years.

Considering the impressive experience and expertise RJDG’s management team brings to the table, many investors are bullish on RJDG and believe that it could be one of the best penny stocks to buy now in anticipation of its potential growth under this management.

RJDG Financials

Q2 Financials
According to its latest quarterly report, RJDG had a QOQ increase in assets from $4.1 million to $4.3 million. As well, the company’s liabilities decreased to $1.5 million compared to $1.6 million in the previous quarter. Meanwhile, RJDG increased its revenues YOY to $1.1 million compared to $945.8 thousand. In light of this, the company increased its net income from $66.3 thousand a year ago to $83.1 thousand. Although these numbers are impressive for a growing company, the most impressive part of these financials is that the company has no outstanding debt or convertible notes. Based on this, RJDG is in a strong financial position to pursue growth opportunities.

April Financial Update
In the interest of transparency with its shareholders, RJDG shared some numbers from its April operations which could signal further financial growth for the company. In the month of April, RJDG realized $406.9 thousand in revenues and had an EBITDA of 17.9%. With the company actively exploring acquisition opportunities, RJDG could could continue to report impressive financial growth and expansion this year.

Technical Analysis

RJDG is currently trading at its support of $.01, it has supports near .009, .0077, and .0062. Based on the stock’s historical price action, RJDG has resistances near .0148, .0161, and .0182. It’s worth noting that RJDG reached a high of .028 in February of 2021. The stock ran from .0055 on June 8th to a high of .0165 on the 15th – a 200% increase in total. While the stock has dipped to $.01 many believe the stock could run further if momentum persists.

The company’s upcoming quarterly report is a catalyst to watch as well as a possible acquisition of a medical billing company which the company was considering in 2021. While the stock is trading above both MA’S following a golden cross, the stock did drop below its VWAP during profit taking at close. Investor’s will likely be looking for RJDG stock to break through its VWAP if it retests its resistances at .012 and .0131.

As is, accumulation has dipped with profit taking following its run above a penny. The RSI has cooled off to 50 and the MACD has recently become bearish. The regulation of these indicators could give RJDG more room to run today. As for its share structure, RJDG has an AS of 750 million, and an OS of 359.3 million. It’s float is expected to be close to 104.8 million.

RJDG Forecast
RJDG could be emerging as one of the best penny stocks to buy now after its rally. Given that the company’s management is regularly updating shareholders via monthly PR, many investors are anticipating the upcoming PR will include an acquisition for its healthcare sector. Moreover, the company’s upcoming quarterly report is expected to showcase further financial growth. With this in mind, these catalysts could add value to the stock which had been trading near $.005 before its run. In light of the company’s solid fundamentals, experienced management, and profitable ventures, RJDG could be one of the best penny stocks to buy now for long-term investors.

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