Any investor that has been around the OTC block more than once has heard management making comments about uplisting to a national exchange, meaning either the NASDAQ or NYSE. Most are just blowing smoke and not making all the necessary moves to not only qualify and get listed, but stay listed. In our scan analyses from Tuesday trading, we ran across one that is talking the talk and - it looks like at this point anyway - walking the walk.
In December, ReelTime VR/ReelTime Media (OTCPK:RLTR) said it was acquiring 100% of Discount Ad Brokers, a 15-year-old media company that ReelTime picked up for a song because of languishing revenue in 2020 owing to restaurant and travel clients slashing advertising budgets due to COVID-19 travel and dining restrictions. The acquisition was a big step in ReelTime's process to move to the NASDAQ Capital Markets, for which it has now reserved the ticker "RT".
In addition to its flagship ad business, ReelTime has other interesting revenue streams, including a licensing deal with Baristas Coffee Companies (OTCPK:BCCI) where it generates per transaction royalties in perpetuity; developing and distributing virtual reality content (including three ongoing series with Samsung Gear VR); licensing virtual commerce technology; and publishing the book "It Was Always ME!: Edward Edwards the Most Prolific Serial Killer of All Time".
Further due diligence needs to be done, but RealTime on the surface looks like one headed for the dance. In the meantime, it's a trade opportunity with a $15 million market cap.
Those that have been in RLTR for the last year are very happy. The stock has risen from below a penny per share last March to as high as $1.03 on February 10 before collapsing back to $0.27. On Tuesday, shares stumbled at first like the rest of the market before finding their footing, eventually closing up 24% at $0.36. We see a little bit of resistance at $0.40 and then a jump before the next resistance at $0.50. We think if RLTR starts tracking upwards again, it will reach at least $0.60, which our initial price target is going.
On the support side of things, we see some first at $0.29 that was s breakout point this month that started the big run. However, there is more at the recent low at $0.27 that is our breaking point. Our stop/loss is going at $0.265 to mitigate any further downside.
Taking a position Wednesday at $0.36 provides an upside opportunity of 66.7% to $0.60, while a stop/loss at $0.265 implies a risk factor of 26.4%.