Today we are talking about a popular 6 cent penny stock, artificial Intelligence Technology Solutions, OTC Ticker Symbol AITX. Recently, I did a deep dive into AITX, which I will link at the end of this video, and today I’ll share details of new catalysts that could mean big wins for this stock. Yes, AITX said in their annual financial statement ending February 2021, that they expected to increase their revenues, over the next year, by 5 to 15 times!
But keep in mind that OTC stocks are highly volatile and risky.
Hi investing friends, this is Lynn, and welcome back to Sixty Perfect Wealth!
In the past I worked for years with Fortune 500 CFOs and financial consulting teams, to help companies determine where they were making money. Now I use this expertise to dig into AITX’ details.
But this is not financial advice, and for entertainment only.
In looking back at 72 tickers I day-traded in 2018, if I had done the type of analysis I’m sharing with you today, I would have held on to more of these stocks. 77% of them would mean big profits today. I spent just $37,000 on seven of these trades, that would now be worth $441,598! The purpose of this series is to help uncover these stock gems that have better odds of make money in the long run.
So Let’s go and review today’s hot stock!
Just before we do, this is a friendly reminder that if you enjoy today’s video, to hit that thumbs up button and leave a comment below. Also, I do have a clickable link in the index below this video in case you want to revisit key points.
In reviewing an OTC stock for investment, I look at the management, competition, size of the potential market share, and if they are increasing their revenues and production of cash. I also search for unique catalysts, warrants that could dilute the stock and legal proceedings that could negatively impact the company. I covered a lot of these details in my previous AITX video, but here will look at AITX’ competition, and new releases planned by AITX that could have a positive impact on this stock. We will also look at their chart’s key support and resistance levels that day traders are leveraging to make quick wins with this stock!
In their most recent annual financial report, AITX stated they only had one immediate competitor, and one potential competitor. They named the main competitor, Knightscope. The details I’m sharing now about Knightscope will give you good insight into a big potential revenue growth for AITX!
AITX’ release of ROAMEO positions it as a near-competitor to Knightscope, a Palo Alto based robotics company that was founded in 2012. RAD’s approach is different from Knightscope’s on many elements of technology. But in reviewing the details that Knightscope shared about the profitability of each robot’s placement, we can get a good idea of the revenues we can expect AITX to receive from ROAMEO.
A private company with a 6’ tall security robot, Knightscope was founded in 2013. The robot has multiple lasers that record a 3-dimensional map. The robot uses proximity sensors to determine when something is coming close. It also has a built-in GPS, and uploads these details and video data to the cloud, where it is stored for as long as 15-years. Knightscope offers one indoor and one outdoor version of their robot which is also offered, like AITX’ ROAMEO, on a subscription basis. This fee can range from $6 – $12 per hour for the robot’s 24/7 surveillance, which includes support.
Knightscope states that their robots are in use at Microsoft and NBC Universal. Kevin O’Leary interviewed Knightscope’s CEO in May of 2020, who explained that from a client’s perspective this fee is a big savings and also very profitable for Knightscope. A year-long contract can mean a $70,000 to $100,000 service fee per year, per machine. Knightscope claimed that it costs about $6,000 to build each machine, and $10K to $20K to support each robot over a 10-year period. This means $225,000 of profit for each robot over a 5-year period for Knightscope. Their customers include 10 of the fortune 1000, four major hospitals and law enforcement sites.
Knightscope also has a multi-terrain autonomous security robot in development that you can see here.
So, if we look at these potential numbers for AITX’ ROAMEO, this is very exciting. We know that CEO Steve Reinharz is expecting orders to start mounting up. Especially with the recent hiring of 5 additional salespeople. He also explained that in the Sept/Oct timeframe they will hire even more salespeople. And, they are reinvesting to build and grow, so are not pushing to be profitable for a while, yet.
AITX also stated that just a small number of expected ROAMEO orders will make a substantial impact on RAD’s financial performance and create momentum for the adoption of the entire RAD lineup. See the full lineup in the screenshot here. You can see why Reinharz just stated that he expects AITX’ monthly run rate to be 5x to 20X larger by end of 2021.
Reinharz also explained that AITX expects some stunning new developments for their line of security robots with the RAD 3.0 update, which will be out most likely in September. And, that they have already released proof-of-concept orders. The plan is for the update to have their devices make more of a stunning, distinctive and futuristic visual statement. They are also planning the Implementation of an ERP so they can scale up the production manufacturing platform.
In addition, they are planning a big media push with Television ads coming this quarter to promote AITX’ services!
CEO Reinharz also shared that RADG has a new development and that the details will be released in July. So, stay tuned for an update on that! I will then also soon share details of their updated financials, as Reinharz expects the release of their quarterly report in July. Reinharz did say that this quarterly report will show growing revenues, which is great news.
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Now let’s take a look at AITX stock chart, and how the day traders are leveraging this stock. This Etrade chart shows two support levels at .0603 and .05, and selling of the stock at the higher resistance level for longer swing trades around .07.
Full disclosure, I now own 4,000 shares of AITX, which I am holding for the long-term. AITX is risky, but I like Reinharz vision, and my investment is one that I can also afford to lose.
This short percentage chart shows that the stock has been shorted on average around 35%. So a good number of short sellers are in this stock which is impacting it as well.
You know, I always love hearing from you, so please let me know in the comments below, what your thoughts are about AITX, or other stocks you are excited about right now. And subscribe to the channel for more videos like this one. Also, go here to discover more hidden gems in our Penny Stock Videos and the original deeper analysis of AITX .
