Georgi Kamburov

ARI Network Services, Inc. (OTCMKTS:ARIS) Reaching Record Prices

by Georgi Kamburov July 5, 2013
ARISchart.pngThe stock of ARI Network Services, Inc (OTCMKTS:ARIS, ARIS message board) is once again closing in on its 52 week high of $3. In the short session before the holiday it rose by the modest 2.8% to close at $2.9. The ticker tested the same heights back in May but met resistance and subsided. Now with the considerable traded volume of 120 thousand shares it may have gathered enough momentum to continue climbing. Since August last year ARIS have almost tripled in value by adding nearly two dollars to their share price.

The company is a provider of technology based services that help their clients sell parts, accessories and garments. ARIS were incorporated in the distant 1981 and for now have withstood the test of time but lets see what their fundamentals look like. According to the latest quarterly report for the period ending April 30 they had:

  • $1,1 million cash
  • $6.7 million total current assets
  • $13 million total current liabilities
  • $8 million revenues
  • $571 net loss

Even though ARIS have an increased revenue gain of 44% compared to the same period last year their balance sheet is still in the negative. They were profitable for the fiscal 2012 with a net income of $1 million but this might not be case for 2013. In order to boost the capital reserves available to the company on April 25 they entered into a new financing agreement with Silicon Valley Bank. The new credit facilities consist of $4.5 million term note and a revolving credit of $3 million.

ARISlogo.pngWith the recent acquisitions ARIS have bolstered the stream of funds flowing into the company and have been moving along with their business plan. The offset is the issuance of 4 million common shares bringing the outstanding amount to 12 million. A positive sign for long-term investors should be the fact that ARIS have never been targeted by pump promotions.

Xumanii, Inc. (OTCMKTS:XUII) who have been heavily promoted in the past month also closed in the green by 10%. The main reason behind the climb was another fluff press release and the distribution of even more hard mailers. American Graphite Technologies Inc (OTCBB:AGIN) on the other hand are in a state of free fall and lost 8% on their way to the bottom.

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