Equity in Focus OurPet’s Company (OTCMKTS:OPCO)

OurPet’s Company (OTCMKTS:OPCO) has climbed to a new 52-week high and is currently up 1.96% on 3x average volume. OPCO is on a steady uptrend since September of 2015 and the share price has surged over 70%. The company is firing on all cylinders reporting record revenues.

In recent developments, OPCO attended the Global Pet Expo 2016 where it unveiled its new line of innovative products. Among those products are Kitty Potty™, the Whirling Wiggler™ spinning cat toy; and the new generation of Flappy® dog toys. In addition it also released a collection of stainless steel pet feeding solutions. OPCO has been building and developing an extensive IP portfolio. It is a powerhouse in the growing pet market industry and holds more than 160 patents in either issued or pending status.

OPCO is a leading pet supply company and there is plenty of reasons to be excited from its extensive IP portfolio, its new innovative product announcements, to its most recent financial performance metrics. OPCO announced a record setting revenues and net income fourth quarter (2015) and full year ending December 2015. Net income grew double digits (10%) to $450k for the fourth quarter 2015. Full year 2015, net income surged 74% to a record $1.337M from $0.769M. EPS almost doubled from $0.04 in 2014 to $0.07. The parabolic growth in net income has been the result of the company’s strategic initiatives to lower fixed costs, production costs, marketing costs, and G&A expenses.

Revenues climbed 5% year of year from $22.77M in 2014 to $23.82M in 2015. Gross profit increased by 11% mainly due to lower selling costs from OPCOs strategic initiatives. SG&A expenses declined by 4%

CEO Steven Tsengas stated “ “Our record results for the 2015 fourth quarter and full-year reflect successful execution of our business strategy. We remain focused on growth initiatives in all three of our key product categories; feeding and storage, toys and accessories, and waste management and odor control. And we continue to grow our business in the Pet Specialty, Food, Drug and Mass Retail, and E-commerce sales channels”

OPCO develops, manufactures, and markets products for the retail pet business. The products the company develops and markets are related to improving the health, safety, comfort, and enjoyment of pets. OPCO has implemented and executed a dual brand strategy. The first is focused on OurPets for the pet specialty channel and the second is the PetZone for the food, drug and mass retail channel. OPCO ny sells around 1,000 products for the most popular pets.
The Company’s products are marketed under the OurPet’s, Flappy, Pet Zone, SmartScoop, Ecopure Naturals, Play-N-Squeak, Durapet, Clipnosis, Go! Cat!Go!, and Cosmic Pet labels to customers, both domestic and foreign. OPCO market products, such as: dog, cat, and bird feeders; dog and cat toys; cat and dog waste management products; catnip products; and natural, nutritional pet supplements and topical products.

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OPCO is currently trading at a $18.82 million market valuation. It is currently trading at less than 1 times annual sales. It seems that the market and investors are undervaluing OPCO which has set a record 2015 in terms of revenues and net income. With its recent product announcements and the growing industry, this story is just beginning for OPCO. This is a micro-cap company but could surge if it continues to have record setting quarters.

We will be updating on OPCO when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with OPCO.

Disclosure: we hold no position in OPCO either long or short and we have not been compensated for this article.