Not all companies are created equal, especially in the land of OTC Markets. However, for stock sleuths and dedicated researchers, the OTC and other small-caps present an opportunity to find “hidden gems.” Due to the lack of coverage from Wall Street on small cap stocks, individual investors have the unique opportunity to potentially find major opportunities hiding amongst the clutter.
One OTC-listed company that has all the hallmarks of being a “undiscovered gem” is Sortis Holdings, Inc. (OTC Pink: SOHI).
Sortis Reports Second Consecutive Quarterly Profit During Q2 2020; Big Growth Likely Still to Come
Sortis Holdings is a diversified alternative investment company that primarily focuses on real estate, distressed opportunities, and consumer-focused private equity. The investment company currently has four active investment funds that are available to accredited investors: Sortis Income Fund (SIF), Sortis Rescue Fund (SRF), Sortis Opportunity Zone Fund (SOZF), and the Sortis Growth Fund (SGF).
During the second quarter 2020, Sortis Holdings reported total revenue of $1,232,656, net income of $586,958, and earnings per share of around $0.04. Compared to first quarter 2020 financial results, Sortis saw revenue growth of 56.71% and net income growth of 1,786% during the second quarter 2020.
The growth comes as Sortis has made several high-profile acquisitions thus far into 2020: Rudy’s Barbershop, Bamboo Sushi, and Happier Camper. Through its four active funds, Sortis’s deal-making skills have been at the forefront of the acquisition strategy.
While the acquisitions are certainly adding the Sortis’s overall top and bottom line growth, the real growth will be experienced as the United States edges into a post-virus normal. As state economies continue to position for phased reopening, Sortis’s Bamboo Sushi and Rudy’s Barbershop will be the biggest benefactors.
The Happier Camper investment is already a perfect fit for the current environment, as COVID-19 has led to a resurgence of RV, camping, and other outdoor activities. Experts predict that vacationers’ rekindled love with RVing and the great outdoors will likely persist even once the “new normal” sets in.
SOHI: Low Float Share Structure Could Help Ignite Rally As Growth Continues
Along with the Q2 results, Sortis released its updated share structure. Overall, Sortis has 100 million shares authorized, 10.62 million shares outstanding, and a float of 5.99 million shares. This further proves that the company’s tight share structure could help ignite a rally, as Sortis’ growth continues to ferment. While low floats can increase volatility and risk, the company’s underlying expanding growth serves as a positive companion to the tight share structure.
Overall, Sortis Holdings is a high-growth alternative investment company that is making a name for itself particularly across the northwest United States. Two consecutive profitable quarters shows management has properly positioned the company for the future. The company’s four investment funds continue to impress. The Sortis Income Fund continues to see strong returns, while the remaining funds have been busy with deal-making and acquisitions. In short, Sortis Holdings is one profitable, high-growth OTC company that stands to have an impressive future.
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