News Details – Smallcapnetwork
Eco-Shift Power Flips the Revenue Switch to the "On" Position... Big-time
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February 2, 2024

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PDT

Good Tuesday morning, everybody. Welcome back from the long weekend. We hope everyone enjoyed their time off, but it's time to get back in the trading saddle. One of our Featured Stocks served up some huge news today, and though it shouldn't be surprising, we've got a feeling it could prove to be quite catalytic for the stock simply because (in our opinion) not too many people besides ourselves were planning on something this big so soon. Remember Eco-Shift Power (ECOP)? This was the LED lighting manufacturer we introduced to you on January 27th, explaining how although it had laid low for the bulk of 2015, it was spending that time quietly becoming a full-blown LED lighting solutions provider... as opposed to just a maker of LED light bulbs. (Yes, there's a difference.) We were led to this conclusion for a couple of reasons. One of those reasons was simply the fact that the company released a new product catalog offering nearly everything under the sun LED-related, including custom-built LED lamps for use on top of the light poles that illuminate the streets you drive on. It's an ideal use of LED technology - even more so than the bulbs you may put in your lamps at home - because street lights consume a LOT of electricity. It costs about $150 per year to power your typical pole light, but only costs about $30 per year to power an LED pole lamp. Considering there are more than 20 million of these things all across the nation, we're talking about a lot of potential savings. At the other end of the spectrum, Eco-Shift Power also unveiled bulbs combining form with function. Anybody have a light fixture designed to use what most people (and the industry) calls an Edison style bulb? It's just a generic term used to describe an old-timey looking bulb that some of you will know are increasingly tough to find as the world transitions away from incandescent bulbs to LED solutions. Eco-Shift Power has begun to make Edison-style bulbs that look incandescent, but are actually LED lights. It's a brilliant innovation. The other reason we had no choice but to believe 2016 was going to be a breakout year for ECOP? CEO Alistair Haughton said so. He specifically noted in the January 27th press release: "Publicly, 2015 was a quiet year for our company. Behind the scenes, it was all about transforming our business model to leverage our strengths and reduce risks. Today, that year of hard work, investment and relationship building is paying off handsomely. Preliminary feedback on our 2016 product catalogs from our growing customer base is extremely positive. We are actively working with our industry leading distributors on initial order workups in anticipation of follow-on orders for big-brand end-users, at healthy gross margins, for 2016 and beyond." Fast forward to today. Per this morning's press release, Eco-Shift Power has partnered up with a distributor called Sprockets, which sold $75 million worth of LED lighting solutions last year. This exclusive relationship pretty much assures ECOP is going to be putting up some very good numbers this year that it didn't put up last year... just as Haughton explained would be the case. The full press release is below; I just want to highlight this one snippet: "Under the terms of the Agreement, Sprocket will provide Eco-Shift exclusive access to its world class clientele by designating the Company as its sole provider of LED lighting products and components. The Santa Monica, CA-based Sprocket team has a proven sales track record with about $75 million in annualized LED sales globally. With 15 years' experience distributing both commercial and residential lighting products worldwide..." For perspective, Eco-Shift Power did between $1 million and $2 million in sales for the past few quarters we've gotten reports for. And, ECOP only sported a $2.6 million market cap as of the last look. If Sprockets repeats its usual sales of LED lights and is only selling Eco-Shift Power LED lighting solutions.... well, you get the idea. The partnership should start driving revenue for Eco-Shift Power in the second quarter of this year. I don't know what else needs to be said about the Sprockets deal. This is huge. I'll just add, however, while the ECOP is the sole provider for Sprockets, the partnership doesn't preclude Eco-Shift Power from continuing to enter relationships with other distributors -- especially overseas ones where LED lighting solutions are tougher to come by and the LED lighting revolution is still young. At stake is a piece of what will become a $60 billion market by 2020. Either way, I've got a feeling the news is going to start driving the stock however soon - as in now - in anticipation of the revenue growth that's just been secured. Folks, this is the quintessential penny stock story... finding an underappreciated company before anybody else realizes what's about to happen. That's why we told you about it back on the 27th. Long story made short, the train is leaving the station. While today's news could be good for the stock, I've got a feeling this is just the beginning. ECOP is likely to keep announcing newly-forged relationships from this point forward now that it's got its product and process perfected, with each news item potentially propelling the stock forward. This is a level of marketing and sales the company wasn't even trying to do until it got all the pieces of the puzzle in the right place. Now that it's put those pieces of the puzzle together, it's proverbially flipped the revenue switch to the "on" position. From here it's going to be tougher and tougher to think Eco-Shift Power isn't rolling down the growth track. While Q2 numbers will confirm it, I think it would be a big mistake to wait for those numbers to make a play when the growth evidence is staring us all in the face leading up to that report. Here's the press release. Eco-Shift Signs Agreement With Leading Global LED Lighting Distributor; Sprocket Designates Company Its Sole Provider of LED Lighting GUELPH, ON--(Marketwired - Feb 16, 2016) - Eco-Shift Power Corp. (OTC PINK: ECOP), a global producer of advanced LED lighting products, today announced it has signed a distribution agreement with Sprocket International, a leading global LED lighting distributor. Under the terms of the Agreement, Sprocket will provide Eco-Shift exclusive access to its world class clientele by designating the Company as its sole provider of LED lighting products and components. The Santa Monica, CA-based Sprocket team has a proven sales track record with about $75 million in annualized LED sales globally. With 15 years' experience distributing both commercial and residential lighting products worldwide, the Sprocket team is well positioned within the lighting industry. A partial list of their current or prior clients includes: Major hotels, such as The Peninsula, Hilton and Marriott Major facility management companies, including Fastenal (2,800 locations) and Rexel Big box retailers, such as Sears, Bed Bath & Beyond, Target, Costco, and Walmart Industry e-commerce companies, including the top-ten online electrical resellers Casinos, such as Harrah's, Caesars Palace, Golden Nugget and Wynn Entertainment industry, including CBS game shows Wheel of Fortune, Jeopardy and Price is Right. The Company expects its Sprocket driven sales will begin to ramp up substantially beginning in the second quarter, 2016. Sprocket will represent Eco-Shift's new 2016 catalogs with its clients, along with Eco-Shift's international distributors and/or resellers being brought on in Europe, Australasia, Latin America, South Africa and the Middle East. This strategy reflects Eco-Shift's collaborative, win-win management style that further distinguishes the Company as the up and coming industry leader. Accordingly, Eco-Shift in 2016 expects to sign and announce several other distribution agreements in specific vertical or geographic markets to ensure thorough market penetration worldwide. "Sprocket and their highly regarded team of experts are known as the go-to source for leading edge certified LED lighting products," said Eco-Shift Chief Executive Officer, Alistair Haughton. "We're excited to be doing business with Sprocket, and we anticipate a highly successful partnership with orders already in process for Q2-16 fulfillment." Commenting on the Agreement, Sprocket Vice President Jordan Barnette said, "Sprocket is synonymous with the industry's top quality LED lighting. We trust Eco-Shift Power to provide the unrivalled quality and reliability our clients have come to expect. "We found the Eco-Shift emphasis on quality extends throughout its entire product offering ranging from the LED lamps, lenses, diodes and drivers on down to the high quality housing materials, connectors, wiring and solder used on the boards," Mr. Barnette added. "This commitment to the highest quality, even on the smallest not visible parts, makes Eco-Shift the standout manufacturer and our logical choice. "Eco-Shift delivers the range and quality of products our clients value -- at the large volumes we require -- backed by the industry's best warranties." About Eco-Shift Power Corp. Headquartered in Guelph, Ontario, with affiliate and distributor offices strategically located in key markets California, Florida, Auckland NZ, and Scotland, Eco-Shift Power Corp. is a contract manufacturer of advanced, high-efficiency lighting products and components designed for state-of-the-art energy management systems and cloud-based software platforms. It has strong relationships with a growing worldwide customer base composed primarily of major OEM/ODM lighting designers and distributors. Please visit us at www.eco-shiftpower.com Forward-Looking Statements This news release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond Eco-Shift's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) the highly competitive nature of lighting industry sales and distribution, (ii) development and protection of our key OEM/ODM and distribution partnerships, (iii) unexpected industry technological development. More detailed information about Eco-Shift and the risk factors that may affect the realization of forward looking statements is set forth in our filings with the Securities and Exchange Commission (SEC). Investors are urged to read these documents free of charge on the SEC's web site at www.sec.gov. Eco-Shift assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise. Contact: ECO-Shift Company sales@eco-shiftpower.com contact@eco-shiftpower.com +1(844) 779-7900 Eco-Shift Power Corp. 53 Speedvale Avenue Guelph, ON N1H 1J6 Canada Sprocket International Jbarnette@sprocketintl.com Jordan Barnette +1 (276) 870-7493 Sprocket International Santa Monica, California, 90403 USA