Starfleet Innotech, Inc. (OTC: SFIO) has built itself into an impressive company after spending much of 2021 focused on acquisitions and restructuring. After canceling 50% of its authorized shares, SFIO stock has been gaining momentum and surged 40% on the news. With a number of catalysts coming on the way, SFIO stock is one to watch in 2022.
SFIO Stock News
The company has pursued a series of vertical and horizontal integrations to produce a more productive and profitable family of businesses which has left SFIO with three main divisions: Food and Beverages, Real Estate, and Technology. After consolidation of its firms dealing primarily with food, franchising, coffee, and beverage solutions, SFIO has improved its supply chain management, logistics, and established partnerships with wholesale bakeries and food commissaries while developing new distribution channels for its beverage products.
It’s flagship brand – Epiphany Cafe – will be expanding across Australia, the Philippines, Malaysia, the United Arab Emirates, and the United States based on the results of the company’s market research. SFIO is discussing these plans with a range of convenience store brands in Malaysia and Australia which may begin carrying Epiphany’s pillow-soft donuts, while its instant coffee product has already received orders from partner distributors in the US and Australia.
According to a recent update, SFIO has signed an exclusive distribution agreement with a leading distributor for Amazon to distribute its Gorgeous Coffee products in the US. It is also in the process of setting up a number of stores in New Zealand over the next three months. The company expects to receive orders from the UAE and Philippines as well. On this note, the company shared that it will be establishing Hungry Dudes – a mall kiosk concept for cafe fare in Malaysia – which will be converted into its flagship brand, Epiphany Cafe, as it launches at least 100 licensed outlets over the next two years.
At the same time, SFIO has developed its real estate division and currently envisions township projects that are future focused with an emphasis on smart city technologies, health and wellness systems, and medical tourism. After laying the groundwork for this strategy in 2021, SFIO has obtained the necessary local permits to pursue its land development initiatives which are already underway. Currently, the company is seeking non-dilutive funding options to accelerate progress on these initiatives and has already received a letter of interest from the Export-Import Bank of the United States (EXIM) for financing of up to $28.75 million directed towards the company’s medical and retirement resort in Montemaria, Batangas, in the Philippines.
SFIO is also pursuing a joint venture with its Filipino partners to build an eco-luxury, health and wellness community on a bayside property in Puerto Princesa, Palawan as well as an eco-friendly, tech village in Batangas, Philippines. This $100 million project will follow a 10-year development plan to build 500-units but ultimately, the proceeds from these high-yield projects will be poured back into the company’s other divisions to sustain their growth.
Meanwhile the technology division will act as the backbone of its other divisions by creating a proprietary platform capable of managing its real estate projects as well as developing community health systems. The company partnered with Fort Health Data Systems and NeuroSky in an effort to advance these projects. Neurosky offers an innovative approach to biotech and community health with electronic wearables to monitor vital signs, symptoms, and brainwaves. Given the worldwide focus on health following the pandemic, SFIO is hoping to use its exclusive rights in New Zealand and the UAE to sell NeuroSky products as well as its non-exclusive distribution rights in Malaysia, Singapore, Thailand, the US to generate between $10 and $15 million in revenue through the sale of 100,000 wearables across different industries.
SFIO’s push towards innovative technology was no doubt facilitated by the company’s acquisition of Philippine-based software development company LEENTech Network Solutions in 2021. Built as a startup enabler, LEENTech is designed to launch tech projects using its skilled team and spin them off into new businesses. As part of SFIO, LEENTech will be looking for opportunities in SFIO’s current portfolio to streamline operations using technology and develop disruptive systems as well as collaborate on some of its real estate development projects such as its tech village in Batangas.
In this way, SFIO is pursuing a clear growth strategy for the next three years, but it is remaining careful as the company’s CEO – Jeths Lacson – shared, “it’s important to note that we are taking a ‘measure-twice, cut-once’ approach to this growth—entering markets only after we’ve done the requisite studies and properly localized our playbooks,” he went on to say that the company wants “to ensure this growth is sustainable in the long-term” as SFIO strategizes its entrances into these markets.
According to the company’s latest quarterly report, SFIO has $2 million cash on hand. The company highlighted that in Q3 it secured $2.7 million in revenue, $1.5 million in gross profit, for a net income of $588 thousand. SFIO reports $12.3 million in total assets and $2.18 million in liabilities. It has a large number of asset purchase agreements as well – all of which are restricted and shares were purchased for between $.07-.10 a share. But for 2021, SFIO projects $25 million in estimated revenue and $5.7 million in net income.
*Updated April 14th
Further developing its real estate division, SFIO partnered with Luyten – an Australian 3D concrete printing company – to utilize its construction technologies across SFIO’s projects in the Philippines. Through Luyten’s technologies, SFIO will likely save time on set-up compared to traditional machinery since Luyten’s machines can be remotely controlled from anywhere.
Luyten’s 3D printing devices are able to reduce production time by 70% at only 20% of traditional labor costs which means SFIO could be positioning itself for substantial, rapid growth across its ongoing development projects. Given that this partnership will enable the construction of 500 low cost housing units in the Philippines over the next two years, SFIO appears set to achieve its target of $100 million in revenue for 2022.
According to the partnership, SFIO has exclusive distribution rights for Luyten’s devices in the Philippines. In this way, SFIO plans to sell these devices to local government units as well as non-profit organizations and currently expects to sell 50 devices this year. With the global 3D printing construction market expected to reach $5 billion by 2030, as an early adopter SFIO could be in a position to capitalize on this growth.
Meanwhile, SFIO has also partnered with Project Fort – a health analytics company – to provide data-driven community care to its community health real estate projects. Project Fort’s unique approach to gathering and analyzing community health data will allow SFIO to pursue its plans of exploring the untapped employee health market in the Philippines. SFIO also intends to introduce a new version of Project Fort for its projects in Batangas.
At the same time, SFIO is working to deliver on its plans for the medical and retirement resort in Montemaria. SFIO’s management shared that it will be meeting with AbaCore Capital Holdings to discuss initiating this project and many have speculated that if the talks go well, then the project could start earlier than expected.
This has led SFIO to launch a digital campaign using ads on the NASDAQ building and Times Square to promote its projects. This campaign is in tandem with SFIO’s ongoing expansion plans to bring in its flagship business – Epiphany Cafe – to the US. With these ads showcasing the company’s core divisions and growth roadmap, investors are bullish this campaign will bring more investors to SFIO stock.
Continuing its global expansion efforts, SFIO’s subsidiary The Global Academy NZ is set to launch the STEP UP program in Dubai. This platform uses the Learning Management System developed by LNS+ and will feature hundreds of online courses. To facilitate networking, TGA planned an event with HR executives and managers to seek partnerships with organizations for its Masterclass program. As the opening of TGA’s office in Dubai draws closer, it appears that SFIO is on track to continue cementing its growing presence in the UAE.
In terms of its financials, SFIO showed impressive numbers in a number of key metrics according to its 2021 annual report. With $2.3 million cash on hand, SFIO is well-positioned to continue seeking additional projects and assets. On that note, SFIO reported $19.2 million in total assets as well as $5.4 million in liabilities. Based on this, it appears that SFIO will be able to meet its obligations without diluting its shares. SFIO also reported $24.1 million in revenues, which is near the company’s projections of $25 million. In light of this, many investors are bullish SFIO could reach its projected revenues of $100 million for 2022.
SFIO is quickly becoming one of the top stocks to watch after announcing a 50% reduction in its AS as well. This share reduction took its AS to 2.5 billion shares but the company plans to create 310 million Series B Preferred Shares amounting to 22% of the OS. After the share restructuring, SFIO expects an OS of approximately 1.105 billion shares. It’s important to note that the new class of preferred shares will carry a minimum 12-month moratorium on sales as well as further restrictions. In light of these catalysts, SFIO stock is one to watch this year.
Media Sentiment
@InvestorGroup15 is bullish on SFIO stock and MJWL stock thanks to their 2022 projections and strong finances.
@cdntradegrljenn is also bullish on the results of SFIO’s annual report
Technical Analysis
Currently trading at $.0318, SFIO stock shows a resistance at .0338 and a secondary resistance at .038. Meanwhile, SFIO stock shows main support at .03 as well as a secondary support at .028. Accumulation is currently steady after a major surge in March with the MACD bullish following a recent crossover. The RSI is holding at 50 after bouncing back from 29.
Considering the company’s recent and impending catalysts, SFIO stock has become a favorite among many investors. As the bulk of the company’s operations are in the real estate industry, many investors are confident in SFIO stock’s long-term potential. However, SFIO stock could run on other news given the company’s expansion across its other divisions which may help SFIO to break through its strong resistance near $.039.
SFIO Stock Forecast
After proving its potential to be profitable according to its 2021 annual report with $24 million in revenues, SFIO stock is quickly gaining the attention of investors eager to capitalize on the real estate market. Considering its current market cap of $45 million, SFIO stock could be undervalued if it achieves its projection of $100 million in revenue for 2022. Additionally, its 50% AS reduction will help relieve dilution concerns – leaving many investors bullish on SFIO stock’s long-term upside potential.
If you have questions about SFIO stock and where it could be heading next feel free to reach out to us in our free alerts room!
Disclaimer
Please visit and read our disclaimer here.
