Forza Innovations Inc. (OTC: FORZ) is mainly operating in the health-tech wearable performance business where it is developing the WarmUp product line. After the company shared an update on its subsidiary’s operations, FORZ stock soared 130% intraday as the update included a number of profitable deals and a potential new business. While the stock closed near its initial PPS, FORZ could be one of the cheap stocks to buy as the company prepares to launch its product into the market.
FORZ Stock News
Sustainable Origins
Although FORZ is aiming to operate in the health-tech wearable performance market, the company has been looking to diversify its business to raise the funds required to start producing its WarmUp product line. Based on this, FORZ acquired Sustainable Origins to provide a steady revenue stream to the company in exchange for 600 thousand shares and $17 thousand in cash.
Sustainable Origins operates in recycling used cooking oil collected from restaurants, casinos, and food processing plants. This used oil is then sold to companies producing biodiesel. With this in mind, Sustainable Origins is capitalizing on the rising demand for fossil fuel alternatives since biodiesel is an efficient replacement to fossil fuels. In light of this, FORZ could be well-positioned to witness substantial financial growth through its subsidiary.
Looking to improve its operations, Sustainable partnered with Denver Waterjet to provide custom fabricated tanks for its clients including large restaurants and kitchen commissaries. Through this partnership, Sustainable would be able to improve the collection efficiency for both Sustainable and its clients.
In addition, Sustainable has been upgrading its equipment by installing Blue Rover Ai tank sensors in the customers oil storage tanks. These sensors will show Sustainable how full customer tanks are so that the company can schedule pickups more efficiently. Considering that the majority of Sustainable’s competitors are not utilizing this technology, the company has a major advantage that could allow it to attract more customers. Since Sustainable is clearly focused on improving its operations’ efficiency, FORZ could be poised to realize record revenues in the coming quarters.
With this in mind, Sustainable has been working to grow its customer base through partnerships and marketing campaigns. In light of this, Sustainable partnered with Zoom Drain for two-way client referral. This partnership has been a major success since it allowed Sustainable to access large new accounts. Meanwhile, the company hired the DeAlva Wilson Agency to connect it with large companies. This will be facilitated using the supplier gateway platform which will allow the agency to connect Sustainable with more customers. With Sustainable growing its customer base, FORZ could be one of the best cheap stocks to buy as it could be set for major growth in the future.
At the same time, Sustainable has a new allied membership with the North Carolina Restaurant & Lodging Association (NCLRA) and is currently in talks with LEPR advertising agency to increase its media exposure. Given the company’s efforts to market its business, Sustainable has the potential to become a major player in its industry in the Carolinas.
Moreover, Sustainable started a digital marketing campaign with LinkedIn targeting restaurant owners, general managers, operation managers and restaurant group CEOs. Through this campaign, FORZ’s subsidiary was able to sign several deals with Popeye locations and made new connections with several restaurant owners and restaurant groups. On that note, Sustainable recently signed a number of collection contracts with 3 Ruth’s Chris Steakhouse restaurants and 3 City Kitch Commissaries – where each location has 30 restaurants and food trucks. Considering FORZ’s run upon announcing these deals, FORZ stock could be one of the cheap stocks to buy now as the company is constantly growing its customer base.
Sustainable is also working to expand its presence in the Carolinas. Currently, the company is negotiating for an asset purchase agreement with Carolina Biodiesel which is currently serving 87 restaurants. If both companies reach an agreement, Sustainable would have access to the cities of Greensboro and Raleigh where its customers have locations. In light of this, Sustainable could secure contracts with its customers’ locations in both cities which could bolster FORZ’s financials significantly. For this reason, many investors are bullish FORZ stock could be one of the best cheap stocks to buy this year as Sustainable continues growing its business.
On that note, Sustainable appears to have closed the deal with Carolina Biodiesel since FORZ’s latest update highlighted that Sustainable is operating the refinement of renewable fuel inputs. If this acquisition is confirmed, FORZ could be in a prime position to capitalize on the growing demand for cleaner fuel alternatives since biodiesel can reduce carbon emissions by up to 85%. In light of this new business direction, FORZ could be one of the cheap stocks to buy this quarter thanks to the company’s growth potential in this industry.
Funding
While Sustainable could provide FORZ with the required financing to roll out the WarmUp product line, the company has been active in securing funding opportunities. With this in mind, FORZ secured $5 million in an equity line of credit and raised an additional $600 thousand to expand its products and operations. In addition, FORZ entered into a $480 thousand promissory note. Through these proceeds, the company paid off a previous $180 thousand note and plans to support its WarmUp business and new upcoming projects. With the company raising significant funding for its main business, FORZ could be one of the cheap stocks to buy in anticipation of the company’s plans to roll out.
FORZ Stock Financials
Looking into FORZ’s Q3 financials, the company grew its assets to $591.3 thousand compared to $137.8 thousand in Q4 2021. Meanwhile, FORZ reported $1.8 million in liabilities – increasing from $420.6 thousand in Q4 2021. While the company has not recorded any revenues, FORZ’s net loss declined to $999.2 thousand from $3 million a year ago. Given the company’s acquisition of Sustainable and the subsidiary’s potential in its market, FORZ could be well-positioned to deliver better financials in the coming quarters.
Media Sentiment
@KickoStocks is confident FORZ could be a profitable long-term hold.
@ChairmanOtc is watching FORZ closely thanks to the potential of the company’s latest update.
Technical Analysis
FORZ is currently trading at $.0085 and has a support at .0082. The stock also shows resistances near .011, .0129, and .0174. While FORZ ran by as much as 130% following the company’s update on Sustainable, the stock dropped near its initial PPS before the run. With this in mind, FORZ filled the gap on the chart and is near its support which could be an entry point for bullish investors. Given that the stock appears to be bottomed out, FORZ could be one of the cheap stocks to buy in anticipation of more updates from the company.
Considering FORZ’s parabolic run on its latest update, accumulation is on a steep downward trend and the MACD recently turned bearish due to profit-taking by investors. However, the RSI cooled off from 84 to 45 indicating that FORZ could be set to have another run on high volume. With an OS of 220 million and a low float near 45.6 million, FORZ could witness another spike on additional positive news.
FORZ Stock Forecast
Through Sustainable, FORZ is emerging as one of the promising cheap stocks to buy since the subsidiary is operating in the growing industry of used oil recycling. With this in mind, Sustainable has been rapidly expanding its customer base since being acquired by FORZ as the subsidiary has contracts with some of the largest restaurants and commissaries in the Carolinas.
Meanwhile, Sustainable appears to have closed the acquisition of Carolina Biodiesel since FORZ’s latest update showed that Sustainable is operating in refining renewable fuel inputs. While FORZ has not announced this acquisition, investors are bullish PR could be coming soon with more details about this potential acquisition. Considering the potential revenues FORZ could realize from its subsidiary, the company could be on track to start rolling out its WarmUp product line. In light of the company’s upcoming catalysts and growth potential, FORZ could be one of the cheap stocks to buy this quarter in anticipation of these catalysts.
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