IBI GROUP INC COM NPV (OTCMKTS:IBIBF) has been climbing steadily and stealthily over the few weeks climbing from the $2.00 range to over $4.00, a gain of over 100%. This is not your typical penny stock given that it has revenues, operating income, and real earnings.
The company has been raising funds through private placements and unsecured convertible debt notes. It recently announced that it would be releasing its 4th quarter results and hosting a conference call on March 17th. Be sure to mark your calendars as there will be a few developments given the recent increase in cash funds through the private placements. The Chief Executive Officer and Chief Financial Officer will be hosting a Q&A session during the conference call.
The most recent private placement raised gross proceeds in excess of $6.4 million USD. IBIBF issued over 2.7 million shares at a share price of $2.38. IBI Group Investment Partnership was the group that the private placement was made through. The partners in the partnership now hold 30.5% of the common shares outstanding. Not a small amount by any means.
Over the last 5 quarters, IBIBF has posted increasing sequential revenues which is the beginning of this turnaround story and maybe the spark behind the rise in the stock price. In addition, over the last four quarters, operating income has grown from $1.34 million CAD to $12.5 million CAD. EPS has climbed from $0.01 four quarters ago to $0.30. IBIBF has taken on significant debt with debt to total assets exceeding 50%. The company boasts a trailing twelve month P/E ratio of 14.68.
IBIBF is a Canada-based international provider of a range of professional services focused on the physical development of cities. It offers architecture, planning, engineering, and technology. IBIBF employees over 2,200 professionals around the world. It has been in business for over 40 years and developed a vast array of networks with cities and governments. IBI Group believes that cities must be designed with intelligent systems, sustainable buildings, efficient infrastructure, and a human touch.
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IBIBF is currently trading at a $71.40 million market valuation. The stock has been on a nice uptrend doubling in recent week. This is an exciting story with the company in the beginning stages of a turnaround. The share price used to trade as high as $15 in 2012. If the share price were to climb to those levels, the stock would gain over 400% from current levels.
We will be updating on IBIBF when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with IBIBF.
Disclosure: we hold no position in IBIBF either long or short and we have not been compensated for this article.