Sunday 9 August 2020

Sparta Capital Is The Next COVID Mover Like Therma Bright

Sparta Capital Ltd. (SAY.V)
Beginning Price: $0.065
Target Price: $0.35
Upside Potential: 438%
Market Cap: $12.5 million
Shares Outstanding: 192 million

On May 12, we issued an alert on Therma Bright Inc. (THRM.V), calling it the Next Big Canadian COVID Stock back when it was $0.03. On July 24, we reiterated that the stock was going to be the next big COVID stock and placed a $0.75 target on it. Two days later it hit $0.53, nearing our target price. For those who missed out on the big move on THRM, we believe that you will get another chance with Sparta Capital Ltd. (SAY.V) as it is another stock with COVID testing news that has a similar float, price and trading pattern as THRM did before it exploded. 






SAY moved up 140% to close at $0.065 on over 11 million volume traded on Friday after announcing that it will be providing antibody testing to the trucking industry. We are up to 911 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 53 followers so far on here. You can follow us on Twitter @StockTradePicks which has over 4,500 followers.

SAY's press release:

CALGARY, AB / ACCESSWIRE / August 7, 2020 / Sparta Group (TSXV:SAY) (the "Corporation" the "Company", "Sparta Group", "Sparta Capital" or "Sparta") has signed a distribution agreement with SBL Technologies Incorporated ("SBL"), paving the way to supply fast COVID-19 antibody testing and analysis for truckers who are putting their lives at risk every day.

In a July 16, 2020 news release, Sparta announced that its "TruckSuite™ Canada division had assembled an exclusive, symbiotic suite of COVID-19 safety tools to assist the trucking industry". As an important component of that suite, "COVID-19 testing for truckers" was to be added; and thus, this agreement becomes the cornerstone of the testing program.

With headquarters in both Calgary and Austin, Texas, SBL is a well-established provider of on-site rapid testing technologies and support tools to help employers manage risk and maintain worker safety. SBL's COVID-19 Antibody Rapid Test can determine whether a person has contracted the SARS-CoV-2 virus and is actively producing IgM antibodies. In addition, it can indicate if a patient who may have previously contracted the virus and has since recovered, still has the disease-fighting IgG antibodies in their system. The rapid antibody tests can provide valuable information for contact tracing, which can pinpoint who else is at risk of infection, on-site, within fifteen minutes.

Under the terms of the agreement, Sparta will be able to start distributing the FDA Emergency Use Authorized ("EUA") COVID-19 Antibody Rapid Test Kits to truckers in the United States and will have full access to support from SBL, including laboratory testing and training on administration and interpreting results. Additionally, Sparta will have access to a dedicated mobile reporting App so that results can be monitored anywhere in real time and can be further integrated into the additional tracking Apps being assembled as part of the TruckSuite™ safety tools.

"The Antibody Rapid Test Kit is part of our TruckSuite™ division's COVID-19 Safety Program and can be very helpful when addressing front line workers like our truckers. With an industry as large as trucking, that employs more than 8.7 million workers across America, it really helps to be able to gather data so that we can improve strategies to curb the COVID-19 pandemic and make sure that truckers on the frontlines are safe. SBL is known for providing high quality tests to enterprise companies across a variety of industries, such as the energy, mining, manufacturing and agriculture sectors. We are pleased to be working alongside them as we now expand into the very important transport vertical." said Sparta President, John O'Bireck.

The suite of COVID-19 safety tools will be branded through the company's TruckSuite™ division, which was originally designed to look after the health of trucks but given the unusual times we are living in, has been extended to the health of truckers as well. On July 23, 2020 Sparta also issued a news release announcing a licensing agreement to distribute and co-develop a package of nanotechnology formulations aimed at killing harmful pathogens on the drivers and in their cabs. The Antibody Rapid Test Kits are an equally important part of the Sparta trucker safety program.

Despite the Canadian-United States border being closed to non-essential travel, tens of thousands of border crossings occur daily. Most of this is from freight traffic. This does not even consider state-to-state traffic which will be much higher. What SAY has set up is incredibly lucrative as truckers need these COVID safety tools, including the test kit. 

The stock rocketed to $0.125 in early trading on Friday, but actually pulled back to $0.065 by close. That may scare off some traders, but this is exactly what happened to THRM. When THRM first jumped from $0.05 to $0.135 on July 16th, it actually pulled back to as low as $0.075 a couple of days later after the company announced a $1 million financing at $0.075. At the beginning of June, SAY announced a financing for $250,000 at $0.025. Just like the THRM financing only temporarily held down the stock, we think that any profit taking on SAY will be short-lived. We think that the pullback to $0.065 was an opportune time to load up and that the stock will be surpassing the highs made on Friday on its way to a performance similar to THRM.


Disclosure: We are long SAY.V

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