SmallCapFirm
Your Morning Nasdaq Profile Update - Find Details Now
Zacks Small-Cap Research Report - $50 Analyst Target
August 25th
SCF Members,
On the heels of yesterday's major news, (P-I-X-Y) is trending green early this AM.
With a 5-Day Simple Moving Average of $3.96 according to Barchart, this could be a sign that this Nasdaq profile is ready to make its next potential move up the chart.
Plus, P-I-X-Y has held the $4.00 level which means that strong support could be gathering there.
Remember, this profile has a low float of under 4Mn shares. When a potential catalyst appears, it can create volatility for a stock with a share structure like this.
Could the next potential catalyst be right around the corner?
If you haven't yet, read my full initial report below now.
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Let's dive in quickly today as the market is now open and there is only one low float Nasdaq idea to have on your radar right now...
Your new stock profile for Tuesday, August 25th is:
ShiftPixy, Inc. (NASDAQ: P-I-X-Y)
ShiftPixy is a disruptive human capital management platform, revolutionizing employment in the Gig Economy by delivering a next-gen mobile engagement technology to help businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and better connect with a ready-for-hire workforce.
And, right now, you need to pull up today's profile for several important reasons. The top one right now is because of yesterday's game-changing news. Read here:
#1 Potential Breakout Catalyst - Monday's Breaking News
ShiftPixy Announces New Alliance with US Wellness
– US Wellness to immediately place 9,000 nurses on the ShiftPixy platform
– Near-term future plans expected to double scale
MIAMI, Aug. 24, 2020 (GLOBE NEWSWIRE) -- ShiftPixy, Inc., a Florida-based gig engagement platform provider, today announced an important nationwide alliance with US Wellness, a provider of employee wellness programs with a comprehensive suite of services designed to engage and inspire employees toward achieving their wellness goals. Through the alliance, US Wellness will immediately place 9,000 of its nurses on the ShiftPixy human capital management platform, with near-term plans expected to double that staff volume.
“From its inception, ShiftPixy was designed to be rapidly scalable for high volume, fast moving companies such as US Wellness, and we are honored to help with their critical needs by bringing their valued employees onto our sophisticated platform,” said ShiftPixy Co-Founder and CEO Scott Absher. “We will be working diligently with our new partner to immediately on-board 9,000 members of the US Wellness team, followed by an expected additional 11,000 team members over the coming weeks. We couldn’t be more excited to enter this important alliance and look forward to helping US Wellness achieve its vital corporate mission for years to come.”
“With ShiftPixy we saw an immediate opp. to quickly scale our team and offer valuable benefits and protections to our national clinical staff. ShiftPixy offers us the tools we’ve been looking for to manage our rapid growth and better connect with our field staff,” said Tori Tomlinson, Founder and CEO of US Wellness. “The ability to move quickly to meet the immediate and future demands for CV-19 testing and other support services for employers was of the utmost important to us. ShiftPixy was the natural choice. We are enthusiastic about this partnership and what it offers to us and our national staff of clinical professionals.”
#2 Potential Breakout Catalyst - Analyst $50 Price Target
In January 2020 (pre-pandemic), an analyst from Zacks Small-Cap Research released a research report on today's profile highlighting the company's tremendous upside potential.
Here are some key details of how they came to the $50 target:
- ShiftPixy is taking a unique approach to solving the human resource management problems of the gig economy. Its solution is to have its customers move their workers over to be employed by ShiftPixy, which then acts as a staffing agency for the customer. By pooling the employees of many smaller companies, ShiftPixy can administrate the human resource management function with economies of scale. In return for providing ins., payroll processing, benefits, and compliance services these enterprises pay ShiftPixy a fee based on their payroll, that is much less than the cost of doing these functions in-house.
- ShiftPixy first targeted the underserved restaurant and hospitality industry vertical, particularly small, and medium businesses (SMBs) with 100-500 employees. These companies are the main victims of increasing regulation. As of August 31, ShiftPixy served about 246 clients who utilized over 13,000 workers. We believe there are three million restaurant and hospitality entities with under 500 employees in the US and we estimate this vertical market size is $3Bn in service fee revenue, or $30Bn in gross billings including wages.
- Another differentiator for ShiftPixy is its mobile app that has been launched and is rolling out capabilities. It is being used now to onboard new employees. It has added the car insurance metering product for deliveries and scheduling between restaurants and shift workers by matching qualified workers to shifts, while giving workers access to their schedules and earnings in real-time which are both being tested by a few customers. Later it will also create a social job-seeking network for matching job openings with workers. Like a match(dot)com it will let employers find shift workers to fill available hours and workers to find jobs. This can be used not only to fill temp or shift work but as a resource for permanent hires. Since all the workers in the network are already employees of ShiftPixy, a restaurant can get a fill in or even hire someone without any additional paperwork or onboarding. In the future this app will allow non-ShiftPixy employees to search for job opp's.
- ShiftPixy is working to further develop its custom mobile and cloud platforms and continue its geographic roll out. It already has offices in Southern California, New York City, Austin, Chicago, and Orlando. It plans to open offices in Miami and San Francisco.
- Management has significant experience in managing a number of staffing and insurance companies targeted at small business and created ShiftPixy to address the unique needs of the emerging gig economy.
- Based an average comparable multiple of 1.1 times enterprise value to calendar 2020 revenues, we believe the company could be worth at least $46Mn or $50.00 per share.
#3 Potential Breakout Catalyst - Short-term Breakout History/Low Float
P-I-X-Y has proven on several occasions in 2020 that it is capable of making massive short-term moves. Here are a few to take note of:
#1. On January 7th, the stock closed at $8.07 and during the following session hit a high of $27.50! That's a whopping short-term surge of approximately 240%.
#2. That's not all... On March 18th, it opened at $5.25 and ran that day to a high of $16.93. Overall, that intraday surge amounted to an approximate 222% run.
#3. It also opened April 14th's session at $4.93 only to race to a high on the 15th of $11.40. This final short-term run can be calculated as an approximate 131% explosion.
See what I mean? Volatility can set this stock off on furious short-term breakouts.
So what allows for this potential volatility? Simple. This profile has a low float.
According to Yahoo Finance, it has a float of approximately 3.49Mn shares.
#4 Potential Breakout Catalyst - Corporate Relocation To Miami
ShiftPixy Announces Corporate Relocation to Miami, Florida
ShiftPixy Labs Ghost Kitchen also to be located in Miami area
IRVINE, Calif., Aug. 20, 2020 (GLOBE NEWSWIRE) -- ShiftPixy, Inc., a California-based gig engagement platform provider, today announced that the Company will be relocating its corporate headquarters to the city of Miami, Florida. The relocation is part of ShiftPixy’s strategy, along with ShiftPixy Labs, to expand its business into the thriving East Coast restaurant industry. Additionally, the Company is pleased to announce that the new ShiftPixy Labs Ghost Kitchen will also be located in the Miami area. The location was selected due to the Miami area’s rich and diverse food culture, which the Company expects to provide a strong customer base for both the Ghost Kitchen Incubator Project and the Incubator Contest. After the relocation, ShiftPixy’s Irvine, California office will remain open to continue serving the Company’s growing West Coast customer base.
“Since our launch in 2015, we’ve been proud to call the city of Irvine our home. Here, ShiftPixy has been able to build a strong customer base throughout the West Coast, and the Company’s beginnings in the great state of California will always be important to us,” said ShiftPixy Co-Founder and CEO Scott Absher. “With that said, we are excited to begin the Company’s next growth chapter in the thriving city of Miami. Establishing our new headquarters in one of the East Coast’s largest cities will provide the perfect foothold from which to launch our expansion to cities up and down the Eastern Seaboard."
Mr. Absher went on to say, “Miami has long been on our roadmap because of inquiries we have from operators in Europe and Latin America, and the city is ideal as our base not only for Eastern US expansion, but for new markets beyond our borders. I’m also excited to be so close to our new Ghost Kitchen venture, and we look forward to sharing more exciting news and details in the coming weeks and months.”
Through ShiftPixy Labs, the Company expects to provide additional layers of services and engagement, from business start-up clear through to customer meal delivery. The new functionality builds on the traditional ShiftPixy gig engagement platform, which empowers restaurant operators to take full advantage of their human capital with cutting-edge tools to handle payroll, compliance and native delivery.
#5 Potential Breakout Catalyst - Ghost Kitchen Incubator Project
ShiftPixy Introduces Ghost Kitchen Incubator Project
IRVINE, Calif., Aug. 11, 2020 (GLOBE NEWSWIRE) -- ShiftPixy, Inc., a California-based gig engagement platform provider, today announced the addition of its Ghost Kitchen Incubator Project to ShiftPixy Labs, the Company’s new suite of marketing and support services for quick service restaurant operators (QSRs). The Incubator Project represents a groundbreaking new approach to how aspiring restaurant operators take their ideas from inception to reality. Through this collaboration with ShiftPixy Labs, operators should gain valuable information and insights on how to launch their new businesses — and how to build and optimize around delivery and off-premise dining from the ground up. By building these relationships with budding restaurateurs, the Company expects to forge lasting partnerships that could open the door to further business opp's.
The CV-19 pandemic has fundamentally altered the restaurant industry, forcing QSRs to adjust their business models to meet the surging demand for off-premises dining. ShiftPixy's Ghost Kitchen is designed to combine the Company’s industry-leading technology with a unique approach to physical space requirements to help QSRs pivot and address the new landscape.
“ShiftPixy Labs is an innovative and highly evolved approach that elevates our engagement with the QSR operator clients we support, especially during these very difficult market conditions,” said ShiftPixy co-founder and CEO Scott Absher. “The numbers are clear: Ghost kitchens and off-premises dining are here to stay, and are growing rapidly. If operators want to survive, they need to re-think their business processes, customer engagement and their approach to real estate. The ShiftPixy Labs Ghost Kitchen allows us not only to help our existing businesses but to discover and participate in the birth and growth of exciting new culinary concepts as well. We are positioned to add an innovative and highly valuable twist to the ghost kitchen movement and we look forward to sharing more details and exciting news in the coming weeks.”
Through ShiftPixy Labs, the Company expects to provide additional layers of services and engagement, from business start-up clear through to customer meal delivery. The new functionality builds on the traditional ShiftPixy gig engagement platform, which empowers restaurant operators to better leverage their human capital with cutting-edge technology tools to better navigate their way to pro*fitability.
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Drop what you're doing now and get this low float Nasdaq profile on your radar, and when you have a second, do this:
