More than two dozen companies headquartered in Ohio are members of the Fortune 500 list, including the likes of Kroger (NYSE: KR), Cardinal Health (NYSE: CAH), Procter & Gamble (NYSE: PG), Macy’s (NYSE: M) and Marathon Petroleum (NYSE: MPC). None of these household names came close last year to delivering the returns of little-known microcap Innovest Global (OTCPK: IVST), which wrapped 2017 at a meager 3.2 cents (which actually was up 60% on December 29th, the last trading day in 2017). Come December 31, 2018, shares were at 47.9 cents, a one-year return of a stunning 1,397%.
In November, the stock set its 52-week high at 65 cents, a gain of 1,931% from December 29, 2017.
2018 was all about growth for the Cleveland-based diversified industrials and biotechnology company. During the year, Innovest grew from a single company with about $500,000 in annual revenue to a having six subsidiaries generating revenue of $34.5 million.
This is from a company sporting a market capitalization of $51.34 million, according to data from OTC Markets Group. And this year is looking even stronger for Innovest.
On Tuesday, IVST released its financial results from the first quarter, as it strives to get current with its reporting requirements, something management says it will accomplish this week.
For the quarter, Innovest reported net sales of $11.7 million, up 1,585% from the year prior quarter and 225% from Q4 2018.
For the first time in its history, Innovest had positive net income, coming in at $986,000, helped by a gain on non-operating income. On a per share basis, net profit was $0.007, based upon ~146.5 million shares outstanding. Even with that many shares outstanding, the company is tightly held with a public float of under 12 million shares.
Cash and cash equivalents weren’t provided, but Innovest showed total assets of $16.5 million. Further, the company has no long-term debt, no convertible debt and no options or warrants outstanding.
Earlier this month, Innovest said it consolidating its two manufacturing facilities into one, much bigger factory. The company’s new global industrial operations will be located in the former Walmart Super Center in Bedford, Ohio, about 15 miles east of Cleveland. The move will more than double operating space and triple manufacturing capacity under one roof, rather the inefficiently shuttling products and materials back and forth between the existing facilities on Grant Avenue like they do today.
The monthly expense for the new facility is expected to be only slightly higher than the leases for the current two locations combined.
Despite the positive quarterly results, shares of IVST are down 8.6% in Tuesday trading at 32 cents, albeit on minimal volume.
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