IDEAS: IWG Technologies Inc. (TSXV: IWG) may be on the cusp of a major business
development and the stock is still reasonably priced.
Investorfile blog believes that IWG Technologies Inc. (TSXV: IWG - $0.345) is
still an exceptional investment opportunity for small cap investors as one of
our Top Ideas. Not only do the shares still trade at a value price, but a big
catalyst for the stock maybe forthcoming.
Technologies Inc.'s main operating subsidiary, International Water-Guard
Industries (IWG), supplies aircraft manufacturers with product technology to
improve the quality of on-board water systems for passengers and crews. The
Company is considered one of the world's leading providers of flight-certified
water treatment units and specialized aircraft water system components for the
business aircraft market. IWG offers a range of products to meet all aircraft
potable water systems' needs, such as water treatment units including components
from pumps to on-demand water heaters, tanks and water control systems.
has built a solid foundation, supplying on-board water systems for a business
aircraft which continues to be a growing sector of the aviation marketplace.
But, it appears now that the Company’s products may become equipped on
commercial jetliners too.
this year the Company received regulatory approval, a Supplemental Type
Certification (STC) from Transport Canada, to allow the installation
of IWG’s new line of Ultra-Violet (UV) Water Sterilization systems for the
Boeing 737-600/700/800 family of commercial aircrafts. Though IWG has been
supplying UV Water Sterilization technology for Business Aviation Aircrafts for
many years, the latest product version is designed for commercial jets, a large
new market opportunity for the Company’s products.
anticipate IWG could be receiving its first orders for its UV water systems
from a major commercial carrier to be installed on its fleet of Boeing 737
jetliners. This would be a very significant catalyst for the Company’s stock.
this potential catalyst is not priced into the stock. In fact, IWG
Technologies' stock is still a value buy based on current financial results.
For the 6-month period ended March 31, the Company
reported that revenues in fiscal 2016 grew 8% to $4.7 million, earning a net income of
$620,000 or 0.016 per share fully diluted. EBITDA for this period was about
approximately $1.2 million. If the results are annualized over a year, IWG
Technologies’ stock currently trades at valuation of 4.2 times Enterprise Value
(EV) to EBITDA. This is inexpensive for a growth stock.
strongly reiterate our initial view that small cap value investors should
accumulate the stock of IWG Technologies shares up to a high of $0.40
(See: IWG Technologies is soaring in small cap value). But,if
you factor the for-mentioned potential catalyst for the stock, the Company
shares could support a much higher trading multiple that effectively could
almost double its current stock price.
Technologies maintains a very strong balance sheet with a net cash position over
Company has approximately 39.3 million shares outstanding.
websites:www.iwgtech.com and www.water.aero
Ownership Disclosure: TSXV: IWG - YES
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is based on the author's independent analysis and judgment and does not guarantee
the information's accuracy or completeness. The information contained in this
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agreement with IWG Technologies Inc. nor has it received any
compensation from IWG Technologies Inc. for the preparation or distribution of this article.
The author of this article has acquired and may trade shares
of IWG Technologies Inc. through open market transactions and for investment