FORT WORTH, Texas–(BUSINESS WIRE)–$ADMQ #ADMQ–ADM Endeavors, Inc. (OTCQB: ADMQ) introduced at the moment that Goldman Small Cap Research has put out a brand new report on ADMQ. The Goldman reviews a perception ADMQ is undervalued and projected a six-month worth goal of $.22.


ADM Endeavors CEO Marc Johnson mentioned, “It is a compliment when professionals see the same potential we see on a daily basis here at ADMQ. We will continue to work hard to increase sales and profit for the shareholders and the company.”

Goldman Research hyperlink: https://www.goldmanresearch.com/202106231323/Opportunity-Research/undervalued-adm-enjoys-major-growth-ahead.html

ADM ENDEAVORS, INC.

Undervalued ADM Enjoys Major Growth Ahead

Rob Goldman

June 24, 2021

rob@goldmanresearch.com

   

ADM ENDEAVORS, INC. (OTCQB – ADMQ – $0.085)

Industry: Specialty Services

6 Mo. Price Target: $0.22

COMPANY SNAPSHOT

Since 2010, ADM Endeavors Inc.’s, wholly owned subsidiary, Just Right Products, Inc., operates a various vertically built-in enterprise within the Dallas/Fort Worth space, which consists of a retail gross sales division, display print manufacturing, embroidery manufacturing, digital manufacturing, import wholesale sourcing, and uniforms.

KEY STATISTICS

Price as of 6/23/21

$0.085

52 Week High – Low

$0.185 – $0.03

Est. Shares Outstanding

163.7M

Market Capitalization

$13.9M

Average Volume

140,394

Exchange

OTCQB

COMPANY INFORMATION

ADM Endeavors, Inc.

5941 Posey Lane

Haltom City TX 76117

Web: www.ADMEndeavors.com
Email: subha@admendeavors.com
Phone : 817.840.6271

INVESTMENT HIGHLIGHTS

ADM Endeavors is a one-of-a-kind, pure play specialty merchandise and companies firm that has loved enviable, constant top-line development, and we imagine it is poised for even greater development charges going ahead. The Company is set to get pleasure from a confluence of key occasions that function brief and long-term drivers of product and vertical gross sales development.

ADMQ is well-known for its promotional merchandise and specialty choices comparable to faculty and enterprise uniforms within the Dallas/Fort Worth metro space and now enjoys substantial gross sales resulting from on-line influencers. The Company is working with key Gamer/YouTuber influencers within the baby/youth markets, an enormous alternative for ADMQ.

The Company has been extraordinarily lively in 1H21. ADMQ launched a novel CBD line which may very well be a sleeper product this yr and in 2022 and the Company boasts a sequence of wins in its core enterprise.

ADMQ grew gross sales by 32% in 2020 regardless of the COVID-19 challenges and we imagine the most effective is but to return. Our mannequin suggests gross sales might attain $6.5M in 2021 and $9M in 2022.

Our 6-month worth goal of $0.22 is a 159% leap from yesterday’s shut and ADMQ might attain past the $0.30 mark in 12 months. Continued penetration of current and new markets, together with new verticals may very well be enhanced through M&A, which we imagine is within the playing cards, thereby driving the share worth additional.

COMPANY OVERVIEW

The View from 30,000 Feet

In our view, ADM Endeavors Inc. (OTC – ADMQ) is a profitable, one-of-a-kind, undervalued rising development firm whose shares provide substantial upside from a wide range of channels, verticals, and initiatives. The pure play specialty merchandise/companies firm is leveraging the long-standing success of its flagship wholly owned subsidiary, Just Right Products, Inc., (www.JustRightProducts.com,) which has persistently elevated gross sales, and ended 2020 with gross sales topping $5.0M, a 32% rise.

This efficiency is much more spectacular when bearing in mind that certainly one of its major income channels, faculty uniform gross sales, declined by about 50% from a yr earlier. Going ahead, the Company and its buyers profit from the confluence of a sequence of occasions that might rework ADMQ from a stable, development firm into a significant drive in is business. These occasions embody:

  • Reduced COVID-19 restrictions,
  • Return of typical faculty uniform gross sales channel efficiency
  • Continued core enterprise wins
  • New verticals and enterprise strains
  • Greater advertising attain through Gamer/YouTuber influencers
  • Potential M&A or entry into new geographic markets.

As a consequence, we forecast a leap in income from $5M in 2020 to $6.5M in 2021 and $9M in 2022. whereas our six-month worth goal is $0.22, a 159% leap from yesterday’s shut, we imagine these shares might vault previous the $0.30 mark within the subsequent 12 months. Our $0.22 goal is primarily based on 4x CY22E gross sales, a typical worth/gross sales a number of for rising development firms having fun with a big ramp-up section.

The Core Businesses

Since 2010, ADMQ’s wholly owned subsidiary, Just Right Products, Inc., has operated a various vertical built-in enterprise within the Dallas/Fort Worth space, which consists of a retail gross sales division, display print manufacturing, embroidery manufacturing, digital companies, import wholesale, authorities procurement and faculty/work put on uniforms. Just Right Products has maximized its work space by providing on website conventional brick and mortar retail inside its manufacturing facility. This permits essentially the most environment friendly use of labor with all staff cross skilled for retail, gross sales, and manufacturing work.

The Retail Sales Division focuses on “Anything With A Logo” merchandise. Ranging from merchandise comparable to enterprise playing cards to espresso cups, attire like t-shirts and hoodies, to much more distinctive merchandise like transportable audio system and pillow, clients have tens of 1000’s of distinctive merchandise from which to pick out. The Import Wholesale Department provides to this choice by sourcing merchandise abroad for each retail and wholesale clients. The just lately created Government Procurement Department assists Municipalities, Schools, Law Enforcement, Fire Protection, Parks & Recreation, Public Works, Public Safety, Zoning and different authorities entities in securing their attire and promotional merchandise.

And lastly, the Uniform Division at present contracts with practically a dozen native non-public and constitution colleges for all uniform wants whereas additionally working with numerous companies for worker uniform attire.

To meet its buyer wants, Just Right Products has carried out state-of-the-art in-house manufacturing that is supplemented with manufacturing facility direct worldwide sourcing. The onsite Screen-Printing Production makes use of 5 display printing machines to print clothes, baggage, masks, and many others. and can produce greater than 8,000 items per day. The on-site Embroidery Production additionally has tools with over 50 heads of embroidery capability, a significant manufacturing benefit over smaller opponents. The Digital Services Department employs 4 digital artists to create model new for patrons or refine art work submitted for orders. All departments work in tandem to make sure a excessive degree of customer support and high quality merchandise, with the flexibility to scale and increase as wanted. (More on that under.)

Just Right Products employs ten gross sales workers who serve greater than 1000 clients every year. Plus, Sage, an internet B2B platform, expands the Company’s product providing to an extra 45,000 wholesale clients. The Company’s distinctive built-in nature (design, manufacturing, advertising, gross sales, complementary choices) make ADMQ stand out from the gang. Moreover, its multi-subsidiary, multi-product, multi-vertical technique has confirmed to be a winner, given its constant gross sales development. As a consequence, we imagine that main development will proceed and that administration’ s foresight will take the Company and the inventory to new ranges.

RECENT EVENTS

New Business Line

The Company simply launched a brand new web site (https://uscbdlogo.com/) whereby ADMQ gives a topical CBD Roll-On product to alleviate muscle ache and soreness. We imagine that this specialty product has upside and intelligent differentiation as in contrast with different CBD merchandise because of the intelligent and amusing personalized labels. The roll-ons have distinctive amusing labels comparable to (Now That Was Dumb, I Had a Bad Day, Just in Case I Workout, and many others.) Therefore, we envision ache victims themselves signify a goal market however maybe a good bigger goal market is as a present, given the novelty or promotional side. Each product gives fast-acting aid utilizing all-natural components with Full Spectrum 1000 mg Hemp in 3-ounce bottle, to assist individuals coping with on a regular basis ache and soreness, and retails for $29.95.

The predominant lively ingredient in CBD Roll-On is remoted CBD that is derived from hemp plant and is THC-free. CBD has highly effective anti-inflammatory and antioxidant properties aside from the analgesic impact. When utilized topically the cannabinoid will get absorbed into the pores and skin in order that it will probably react with cells, muscular tissues, and joints, however it does so with out reaching the bloodstream. While CBD Roll-On can have a optimistic impact on relieving ache, it could additionally relieve irritation that sometimes accompanies ache and harm, thereby offering an general analgesic impact.

In addition to CBD, the roll-on additionally has different lively components comparable to menthol, magnesium and camphor that synergistically act to loosen up muscular tissues and relieve ache earlier than and after sports activities exercise or intense exercise. Menthol is derived from a plant generally often known as peppermint or mint. It is an efficient topical analgesic that finds huge use in topical ache aid merchandise and skincare.

In common, we imagine this providing may very well be a sleeper in 2021 and 2022, particularly if new merchandise are added to the portfolio.

The Influencer Market

World famend Gamer/YouTuber Preston@myfiremerch has launched his new birthday package merchandise to his merch line. FW Promo, an entirely owned subsidiary of ADMQ designed and sourced the Firetastic Birthday Kits for Preston. In addition, well-known Gamer/YouTuber Brianna @RoyallyB, who is extraordinarily common amongst youthful kids, has launched her new birthday package as nicely, which is an FW Promo-designed and sourced product added to her merch line.

Expanding its attain through a artistic providing that is embraced by Brianna, one of many quickest rising YouTubers on the earth, and Preston whose movies have over 5 billion mixed views is fairly a coup. Moreover, it signifies that the Company has a possibility to develop gross sales by reaching a wider and youthful viewers within the promotional occasion class. The proof is within the pudding with respect to income generated by this vertical/channel. Orders elevated in 1Q21 by 45% to greater than $500,000.

Earlier this yr, FW Promo signed a cope with UG Merchandising/Unspeakable, to supply and/or promote Unspeakable model merchandise for the Company. Given that YouTuber’s merchandise already accounts for greater than 35% of gross sales, the Unspeakable model addition ought to have a cloth impression going ahead. Nathan (UnspeakableGaming) is a widely known Minecraft YouTuber with roughly 11 million subscribers and is famend significantly for his YouTube channel UnspeakableGaming.

A Flurry of News in Q2

Since the beginning of the second quarter, ADMQ has loved roughly ten product wins together with these for college methods, together with an ISD in Houston. We view this win within the Alief Independent School District as key as the majority of some of these wins have been in and across the Fort Worth metro space. Penetrating into Houston signifies that the Company is increasing its attain throughout the state for uniform gross sales in addition to different promotional merchandise produced for and bought/distributed at numerous sporting and different occasions round Texas.

Separately, ADMQ introduced that it has a brand new industrial constructing beneath contract. The venture deadline for the property is July 15th or sooner and administration inked a five-year lease settlement for your entire constructing beginning upon deadline, which might function materially added worth to the Company. This information dovetails with the pending transfer from the prevailing ADMQ manufacturing facility to over 17.5 acres of land that was acquired in 2020. Site and constructing plans have been created to deal with roughly 70,000 sq. ft of each retail and manufacturing. Larger services and added tools are shortly turning into a necessity for the Company given its present gross sales development. We imagine that the Company will shortly make the most of a great deal of the capability which is greater than 3x its present manufacturing facility dimension.

THE BOTTOM LINE

ADMQ is an uncommon OTC agency. The Company has a 10-year historical past of top-line development, and considerably grew enterprise in 2020 regardless of the discount in gross sales from certainly one of its core channels, faculty uniforms resulting from COVID-19 restrictions, which negated the necessity for product by its clients. Moreover, administration has confirmed to be savvy in constructing a gradual enterprise from the ISD channel, which is already proving its price within the first half of 2021 and is significantly intelligent in embracing alternatives in fast-growing channels such because the Youtuber/Gamer phase. We imagine this phase may very well be an enormous driver, going ahead in a brand new, youthful goal market. Meanwhile, the business-related promotional gross sales facet is set to return to its prior type because of the return of conventions and conferences, whereas the novel CBD ache aid topical is certain to generate stable gross sales this yr as nicely.

Finally, we imagine that the chance exists for ADMQ to have interaction in a roll-up technique and purchase competing companies which will have both a attain in different geographies or provide a complementary sequence of merchandise. Many of those companies had problem in the course of the difficult atmosphere and have few exit methods. These sorts of transactions might provide main development and revenue to the Company, going ahead. With no long-term debt on the stability sheet, and the leverage of its inventory worth, ADMQ’s prospects for natural and inorganic development might serve to drive the shares nicely past the $0.30 mark within the subsequent 12 months. In the meantime, it must be famous that ADMQ trades above each its 50 and 200 DMA, a bullish technical attribute.

THE ADM ENDEAVORS LEADERSHIP TEAM

Corporate Executives

Marc Johnson, Chairman and Chief Executive Officer

Mr. Johnson has been within the Promotional Products Industry, an business he loves and by which he has loved appreciable success for greater than 35 years, following the graduation of his ­first enterprise in highschool. In 2010, Mr. Johnson began Just Right Products, Inc. Since then, he has attracted a stable buyer base, a wonderful workers and gross sales group that has elevated gross sales from 10 to 30 % yearly. Mr. Johnson earned a Business Administration Degree from Texas Christian University, Fort Worth, Texas.

Sarah Nelson, Chief Operating Officer, Director

Ms. Nelson’s profession contains aiding small companies with their social media, advertising and promoting wants. She additionally has had signifi­cant expertise in fundraising and administration for non-profi­t colleges, regional associations, and athletic golf equipment. Ms. Nelson just lately entered the promo merchandise business over the past 2 years, working in gross sales and operations. She earned a Bachelor of Arts Degree in Environmental Design from Texas A&M University in College Station, Texas.

Motasem Khanfur, Accounting

From Jordan, the place he earned a bachelor’s diploma in Accounting from Al-Bayt University in Mafraq, Jordan. Mr. Khanfur was an proprietor of a number of companies in Amman in his native nation and got here to the United States in 2015. He serves as JRP’s Chief Financial Officer.

Subha Puthalath, VP of Marketing

Ms. Puthalath brings to ADM Endeavors ten years of promoting expertise serving to clients create manufacturers and model consciousness by implementing efficient advertising methods. She is an skilled in managing and executing advertising campaigns from conception to completion utilizing digital advertising platforms to extend gross sales and firm productiveness. Ms. Puthalath is a graduate in graphic design from the New York Institute of Art & Design. She additionally earned a grasp’s diploma in Economics from Calicut University, India.

David Kirk, VP of Sales

Mr. Kirk is a local Texan and a graduate of Texas Christian University in Fort Worth. He has greater than 30 years of expertise within the promotional merchandise business. Mr. Kirk has in depth business-to-business gross sales expertise in addition to promoting immediately to finish customers. He additionally has 20 years of expertise importing items all through the globe.

FINANCIALS SNAPSHOT

ADMQ’s monetary efficiency is spectacular. Its flagship subsidiary has an extended historical past of gross sales development, and administration led the Company to $5M in gross sales in 2020 regardless of dropping 50% of its key faculty channel. Thus, ADMQ recorded a 32% leap in income for the yr whereas most firms suffered declines. Plus, the working loss was negligible for the interval. Already in 1Q21, gross sales rose 31% to $1.1M, up from $881Ok in 1Q20, with working revenue of round $20Ok versus a lack of ($59Ok). With no long-term debt, curiosity expense is negligible and monetary flexibility ample, in our view.

Looking forward, we venture complete gross sales of $6.5M in 2021, a leap of 30%, led by a doubling of faculty uniform gross sales, and with 4% working margin on $270Ok in working revenue. For 2022, we venture income of $9M, a 38% rise, led by its current channels, a resurgence in YouTuber/Gamer-generated gross sales, and growth of each merchandise and geographies, together with CBD gross sales, which we view as a sleeper—particularly as new merchandise are added to the portfolio.

Table I. ADM ENDEAVORS INC.

 

Pro Forma Income Statement

 

($,000)

 

 

 

 

 

 

 

 

 

 

 

FY20A

FY21E

FY22E

 

 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

School Uniform Sales

$626

 

$1,200

 

$2,000

 

 

Promotional Sales

$4,411

 

$5,300

 

$7,000

 

 

TOTAL REVENUE

 

 

 

$5,037

 

$6,500

 

$9,000

 

 

 

 

 

 

 

 

 

 

 

Direct Cost of Revenue

$3,044

 

$3,640

 

$4,860

 

 

General & Administrative

$1,915

 

$2,340

 

$2,880

 

 

Marketing & Selling

$200

 

$250

 

$300

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

$5,159

 

$6,230

 

$8,040

 

 

 

 

 

 

 

 

 

 

Operating Income

 

 

 

($122)

 

$270

 

$960

 

 

 

Operating Income Margin

N/A

 

4.2%

 

10.7%

 

 

 

 

 

 

 

 

 

 

Change in FV of Deriv Liab

($25)

 

($25)

 

($25)

 

 

Gain on Ins Settlement

$20

 

$0

 

$0

 

 

Gain on Loan Forgiveness

$10

 

$0

 

$0

 

 

Interest Expense

($1)

 

$5

 

$10

 

 

Total Other Income (Expense)

$3

 

$20

 

$15

 

 

 

 

 

 

 

 

 

 

Pre-Tax Income (Loss)

 

 

 

($118)

 

$250

 

$975

 

 

 

 

 

 

 

 

 

 

 

Income Taxes

$2

 

$5

 

$50

 

 

Tax Rate

N/A

 

N/A

 

5.1%

 

 

Net Income from Disc Ops

97.0%

 

N/A

 

N/A

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

($24)

 

$245

 

$925

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

 

 

($0.00)

 

$0.00

 

$0.01

 

 

 

 

 

 

 

 

 

 

 

Wtd. Est. Shares Outstanding

149,390

 

170,000

 

185,000

 

 

 

 

 

 

 

 

 

 

 

Sources: ADMQ OTC Markets, and Goldman Small Cap Research

 

 

 

 

 

 

 

 

 

 

 

 

RISK FACTORS

In our view, the Company’s greatest danger to ADMQ is the return to COVID-19 restrictions, which might impression the conference/convention market. Considering that doubtless 75% of the varsity uniform gross sales happens in the summertime, we don’t imagine the Company shall be impacted. On the opposite, we imagine will probably be a driver of gross sales within the interval. Perhaps one other danger is uneven procurement of merchandise/merchandise associated to the Gamer/YouTuber market. Competitive enterprise dangers embody pricing, more practical gross sales/advertising by opponents, or new merchandise or goal markets/verticals by which ADMQ has no presence.

The aforementioned dangers might come from bigger opponents, current companies, or new entrants. Still, these future issues are in keeping with companies of ADMQ’s dimension and standing. Moreover, we imagine that ADMQ’s seasoned administration group is ready to beat these hurdles and generate important top-line development and constant social media administration implementations.

Volatility and liquidity are typical issues for microcap shares that commerce on the over-the-counter (OTC) inventory market. An overriding monetary profit as a public firm is the favorable entry to and the provision of capital to fund product launches, constant advertising campaigns and different initiatives. Since the proceeds of any future funding can be used largely to advance main enterprise growth and gross sales, or potential M&A, we imagine that any dilutive impact from such a funding may very well be offset by associated will increase in market worth.

VALUATION AND CONCLUSION

ADM Endeavors is a one-of-a-kind, pure play specialty merchandise and companies firm has loved enviable, constant top-line development, and we imagine it is poised for even greater development charges going ahead. ADMQ is well-known for its promotional merchandise and specialty choices comparable to faculty and enterprise uniforms within the Dallas/Fort Worth metro space and now enjoys substantial gross sales resulting from on-line influencers. The Company is working with key Gamer/YouTuber influencers within the baby/youth markets, an enormous alternative for ADMQ.

The Company has been extraordinarily lively in 1H21 and we imagine that the Company is set to get pleasure from a confluence of key occasions that function brief and long-term drivers of product and vertical gross sales development. ADMQ grew gross sales by 32% in 2020 regardless of the COVID-19 challenges and we imagine the most effective us but to return. Our mannequin suggests gross sales might attain $6.5M in 2021 and $9M in 2022.

Our 6-month worth goal of $0.22 is a 159% leap from yesterday’s shut and ADMQ might attain past the $0.30 mark in 12 months. Continued penetration of current and new markets, together with new verticals may very well be enhanced through M&A, which we imagine is within the playing cards, thereby driving the share worth additional.

 

Table II. ADM Endeavors, Inc.

 
 

Balance Sheet: 3/31/21

 
 

($ USD, 000)

 
 

 

 

 

 

 
 

Current Assets

 

 

 

 

 

 

 

 
 

 

 

 

 

 
 

Cash

$389

 

 

 

 
 

Accts Rec, internet

$250

 

 

 

 
 

Inventory

$153

 

 

 

 
 

Prepaid Expenses

$65

 

 

 

 
 

Other receivables

$16

 

 

 

 
 

Total Current Assets

$873

 

 

 

 
 

 

 

 

 

 

 
 

Non-Current Assets

 

 

 

 

 
 

 

 

 

 

 

 
 

Property and Equipment

 

 

 

$1,104

 

 

 

 
 

Goodwill

 

 

 

$689

 

 

 

 
 

 

 

 

 

 

 

 

 

 
 

TOTAL ASSETS

$2,666

 

 

 

 
 

 

 

 

 

 

 
 

Current Liabilities

 

 

 

 

 
 

 

 

 

 

 

 
 

Accounts payable

$71

 

 

 

 
 

Accrued bills

$219

 

 

 

 
 

Notes payable

$491

 

 

 

 
 

Curr portion conv notes, internet of disc

$106

 

 

 

 
 

Deriv liabilities

$208

 

 

 

 
 

Total Current Liabilities

$1,095

 

 

 

 
 

 

 

 

 

 

 
 

TOTAL LIABILITIES

$1,095

 

 

 

 
 

 

 

 

 

 

 
 

SHAREHOLDER’S EQUITY

 

 

 

 

 
 

Preferred inventory, $0.001 par worth, 80,000,000

     

$2,000

 

 

 

 
 

shares approved, 2,000,000 shares excellent

     

 

 

 

 
 

as of March 31, 2021 and December 31, 2020

   

 

 

 
 

Common inventory, $0.001 par worth, 800,000,000

     

$164

 

 

 

 
 

shares approved, 163,652,143 shares issued and

     

 

 

 

 
 

excellent at March 31, 2021 and December 31,

     

 

 

 

 
 

2020

 

 

 
 

Additional paid-in capital

$1,308

 

 
 

Retained earnings

$97

 

 
 

 

 

 

 
 

Total stockholders’ fairness

$1,571

 

 
 

 

 

 

 
 

TOTAL LIAB & SHAREHOLDER’S EQUITY

     

$2,666

 

 

 

 
 

 

 

 
 

Sources: ADMQ OTC Markets, and Goldman Small Cap Research

 

Senior Analyst: Robert Goldman

Rob Goldman based Goldman Small Cap Research in 2009 and has over 25 years of funding and firm analysis expertise as a senior analysis analyst and as a portfolio and mutual fund supervisor. During his tenure as a promote facet analyst, Rob was a senior member of Piper Jaffray’s Technology and Communications groups. Prior to becoming a member of Piper, Rob led Josephthal & Co.’s Washington-based Emerging Growth Research Group. In addition to his sell-side expertise Rob served as Chief Investment Officer of a boutique funding administration agency and Blue and White Investment Management, the place he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed on this analysis report precisely replicate my private views in regards to the topic securities and issuers. I additionally certify that no a part of my compensation was, is, or shall be, immediately or not directly, associated to the suggestions or views expressed on this analysis report.

Disclaimer

This Opportunity Research report was ready for informational functions solely.

Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces analysis through two codecs: Goldman Select Research and Goldman Opportunity Research.

Contacts

ADM Endeavors, Inc. | data@admendeavors.com | 817.840.6271

Marc Johnson | CEO ADM Endeavors | 817.231.8040

Read full story here

This post was initially printed on this site



Source link