Rich is always looking for the newest, most undervalued companies to highlight for his community members. While much of his attention is dedicated to the cannabis sector, he scours the entire stock market to find the stock picks that are poised for serious growth.
Today he’s highlighting an exciting company in the utilities sector, Kontrol Energy Corp. (CSE:KNR) (OTCQB:KNRLF). The company was founded in 2015 by people with a vision for energy efficiency. Last year, Kontrol placed 7th on Canada Business and MacLean’s list of fastest-growing startups in Canada. It accomplished this by growing its revenues by more than 2,000 percent over a two-year period.
What Does Kontrol Energy Do?
Though Kontrol isn’t a part of the cannabis industry, Rich explains how it is perfectly suited to serve other companies that are.
“Companies in the cannabis sector are struggling to generate profit, and one of the reasons why is that they have very high expenses,” explains Rich. “Kontrol Energy Corp. is going to reduce the amount they spend on energy.”
Specifically, Rich points to a company like Zenabis Global Inc. (TSX:ZENA) (OTCPK:ZBISF), which has massive cannabis cultivation facilities in New Brunswick and British Columbia. These greenhouses require significant amounts of energy to remain operational.
“If Kontrol Energy can reduce your energy bill dramatically, that will help your bottom line,” he adds.
Kontrol maximizes energy efficiency through IoT (Internet of Things), SaaS (Software as a Service), and Cloud-based technology. It connects and manages a building’s various systems to refine production and collect performance data. Not only does it help companies reduce energy expenditures, Kontrol’s distributed generation and energy analytics solutions lower overall greenhouse gas emissions.
Kontrol’s Recent News
Yesterday, Kontrol Energy released its financial results for Q2 2019. Highlights from the release include the company’s revenue growing 93 percent from Q2 2018, up to $3.9 million. For the first half of 2019, the company generated a total of $7.6 million in revenue and $500,828 in EBITDA.
Kontrol also recently deployed its IoT-powered energy monitoring and analysis solutions at four Smart Factory sites owned by Toyota Tsusho Canada Inc. In addition, it is currently in the process of acquiring another electrical efficiency company, a deal that it expects to complete by the end of the next quarter.
“These guys already have a blue chip customer base in the automotive sector,” says Rich. “Some of their other clients are giants like WestJet, Enbridge, TD Bank, and Telus!”
A Little-Known Prospect
As Rich notes, Kontrol has thus far remained largely ignored by investors and analysts. Also, with just 28 million shares, it keeps an incredibly tight share structure.
“It isn’t a highly-traded stock yet. Nobody really knows this company exists,” he says. “Companies with tight floats are the ones that can explode, they can skyrocket.”
The stock price has had a high of $0.96, a low of $0.46, and currently sits at $0.67. This means that if you believe the company is poised for growth, now would be the time to consider investing.
What do you think? Is Kontrol Energy a company on the rise? If you have any companies you want Rich to profile, let us know about them in the comments below. For another one of Rich’s picks, check out his profile of mCloud Universal (TSXV:MCLD) (OTCQB:MCLDF).
Featured image: Kontrol Energy