By: Tomas Ronolski - AllPennyStocks.com News

Thursday, May 9, 2013

With thousands of small and micro-cap companies to pick from, it isn’t a big surprise that many firms go unnoticed unless they are very proactive about trying to garner the attention of investors. It can be a pleasant surprise to run across one of those quiet companies and certainly should inspire additional due diligence when things look solid from a 30,000-foot view. Reading the news from AnythingIT, Inc. (OTCBB:ANYI) so far in May can certainly raise an eyebrow about the $1.1 million market capitalization of the information technology electronics recycler and e-waste handler. The Fair Lawn, New Jersey-based Company is a certified U.S. government contractor as well as provider of services to the commercial markets.

On the first of the month, AnythingIT reported its earnings for the third quarter of fiscal 2013. Net sales during the quarter improved by about 21 percent to $1.46 million as compared to $1.21 million in the same quarter of 2012. Gross profit grew to $744,786 versus $585,788 in the year prior quarter. Net loss for the quarter was $85,995, compared to a net loss of $480,521 in Q3 fiscal 2012. The company also opened a new facility in Tampa, Florida during the quarter.

As of the end of the third quarter, the company’s long-term debt totals only $526,801.

During fiscal 2012, AnythingIT invested about $90,000 in a new fully automated management system that should help control overhead costs by improving operating and reporting efficiencies and supporting a trimmer business model requiring less warehouse space and personnel.

On Wednesday, AnythingIT said that it has been awarded a three-year contract to provide its services to defense giant Lockheed Martin Corp. (NYSE:LMT). Per the agreement, AnythingIT will be removing IT equipment from Lockheed client sites nationwide and detailing inventorying services as well as providing Department of Defense data destruction, remarketing and recycling services.

Now, no financial details of the contract were disclosed, but generally the mention of a deal with a major like Lockheed will send shares flying. Shares of ANYI are notoriously thinly traded, averaging only 72,000 shares per day (according to Yahoo Finance) and did surge in volume to nearly 700,000 shares changing hands on Wednesday (bringing up the average daily volume to current levels). However, the gains were not maintained and the stock price closed down Wednesday. Trading on Thursday is all over the map having gapped lower to start the day but recovering all of the day’s losses just before the market close.

As mentioned, the news should motivate additional due diligence as to the prospects of the company that carries such a paltry market capitalization with respect to revenue and clients. Granted, the company is still operating in the red so far in fiscal 2013, but many micro caps with far higher valuations carry substantially larger debt loads while generating no revenue. Liquidity is an issue, but with the company’s green technologies and a growing need for safe equipment disposition in a constantly evolving IT industry, AnythingIT looks to have a nice upside at first blush, especially as it completes its transition to its new automated system.

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