TOP IDEAS: IWG Technologies Inc. (TSXV: IWG) may be on the cusp of a major business development and the stock is still reasonably priced.

The 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.

IWG 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.

IWG 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.

Earlier 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.

We 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.

Today 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.

We 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.

IWG Technologies maintains a very strong balance sheet with a net cash position over $3.5 million.

The Company has approximately 39.3 million shares outstanding.

IWG websites:www.iwgtech.com and www.water.aero

Author Ownership Disclosure: TSXV: IWG - YES

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This article is for informational purposes only. This article 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 article is subject to change without notice, and the author assumes no responsibility to update the information contained in this article. The information contained within this article should not be construed as offering of investment advice. Those seeking direct investment advice, should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock.

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