Sparta Commercial Services, Inc. (OTCMKTS: SRCO) is starting to gain momentum and is triggering several long-term bullish indicators.
The financial solutions company with a diverse set of revenue streams is now rated a ‘buy’ on:
- 50-100 Day MACD Oscillator
- 50-150 Day MACD Oscillator
- 50-200 Day MACD Oscillator
- 100 Day Moving Average
- 150 Day Moving Average
- 200 Day Moving Average
- 100-200 Day MACD Oscillator
Wednesday morning investors should be ready because resistance points could fall as momentum builds.
Monitor $0.151, $0.163, and $0.169.
Support levels are $0.134, $0.128, and $0.116.
A force multiplier for this technical setup could be developments to the already positive story.
Sparta Commercial Services, Inc. (OTCMKTS: SRCO) is a financial solutions company with interests in cryptocurrency, financial services, e-commerce, and mobile app development.
SRCO is using a business strategy investors know well, diversification. The low-float company has experienced revenue growth recently and looks poised to accelerate that trend.
Currently, there are two main verticals driving SRCO’s revenue growth:
- Vehicle History Reports- The company’s e-commerce technology earns SRCO a large majority of its revenue. Its subsidiary, iMobile Solutions, Inc., through Cyclechex, RVchex, CarVINreport and Truckchex, offer car buyers assurances and are available on Kelly Blue Book, Auto Trader, AllState, and various dealership websites. These reports have been sold in all 50 states and 62 countries.
- Health and Wellness Products – New World Health Brands, Inc. a CBD and natural dietary supplement brand, is an example of a calculated risk paying off for SRCO. While health and wellness products wouldn’t seem to fit a ‘financial solutions’ model on the surface, New World Health Brands was an opportunity for SRCO to leverage its e-commerce expertise in a fast-growing industry and so far this has proven profitable. Sales have grown by ~80% in the first 9 months of fiscal 2022 vs. the same period in 2021.
While the above verticals have created revenue growth on their own which should continue, SRCO has several other revenue streams that could start showing up in the balance sheet as soon as the next 10-Q.
- Municipal Financing Business- The company’s foundation was built on auto-financing. After the 2008 financial crisis, it shifted its focus from consumers to municipalities. When COVID hit, many of these municipalities received grants reducing their need for funding. However, these grants are drying up and SRCO has already announced several new municipal deals, so expect to see this reflected in increased revenue.
- Mobile App Development- SRCO’s iMobile Solutions subsidiary has signed several app development deals in 2022, meaning new revenue sources.
- Crypto-Payment App- SRCO’s crypto-payment app is an exciting solution for merchants looking to accept cryptocurrency payments. This could be a massive revenue stream if it secures adoption.
Make sure to put SRCO on your watchlist today.
This article is part of a sponsored investor education program.
