Small Cap Network Blog

“Just when I thought I was out, they pull me back in.”

–Michael Corleone (Al Pacino), The Godfather III, 1990

Seems like On The Go Technologies (OTCBB: ONGO) just won’t fade away. We stopped covering the company months ago, and haven’t proactively talked much about them since then. However, there’s been quite the buzz in the blog ‘Comments’ and e-mail feedback about ONGO, so we’re more than happy to stir the pot once again. (Hey, if it’s important to you, it’s important to us.)

So, here’s your renewed forum….feel free to leave comments and thoughts below, as usual. There’s just one ground rule - any messages have to be constructive, helpful, insightful, or educational. Any questions have to be legitimate. On the other hand, the truth is the truth, and we all know it may not always be pretty. So, don’t hold back. Other than that, let’s all share what we’ve got to share. 

We’ll get the ball rolling with this question e-mailed earlier today….

Hi,
I own some shares of ON The Go Health Care (hasn’t been a big winner for me) and with current price wanted your thoughts on purchasing some more to kinda hedge my lose. There was some good news today but wanted your thoughts.
Thanks as usual 

Thanks for asking. You know eventually, things really are going to get to the point when they can’t get any worse. While we’ve been unimpressed by the market’s response to ONGO for a while, we have to admit….we may actually be at the absolute bottom. On the flipside, we think the biggest worry is that ONGO could stay here at the bottom indefinitely.

So yes, it’s still on our radar (as it is for many of you), and may be worth keeping on the radar. However, I rarely board a sinking ship…let’s see if this one floats first.

To answer your question though, do you feel like gambling? We’re not saying it’s wrong to speculate - we do it plenty. We’re just saying that’s the current status we see for ONGO….though it could be a fun bet.

Other thoughts?

(By the way, you might want to review all the comments from our other recent ONGO blog entry….just click on the ‘Comments’ link on this page if they don’t pop up automatically.)

The blog’s ‘Comments’ sections have been busy lately….seems like some of you really have some insightful thoughts about On The Go’s (OTCBB: ONGO) bizarre market cap numbers, and how the stock can continue to deteriorate. Other readers have turned their focus on Execute Sports (OTCBB: EXCS), thinking the company may have finally gotten itself on track after divesting the snowboard division, and inking the deal with Kawasaki.

To jump into the mix for On The Go, click here and look for the ”Got a question or comment?” link at the bottom of each blog entry. (The number in parenthesis is the number of comments submitted about that blog entry so far.)

If you want to read or post additional comments regarding Execute Sports, click here. Same drill…then click on the ‘Comments’ link.

Don’t be shy though! If you’ve got something to say or ask about any of our companies, just post a message on the appropriate blog page. It’s ridiculously easy, and yes, we review and respond to each post you make - as long as it’s legitimate.

We always like to keep you abreast of On The Go’s (OTCBB: ONGO) big sales, and we’ve got a whopper for you today……a $300,000 order from a film and visual effects company. It’s a segment On The Go seems to do well with with, and perhaps more importantly, it’s one of the bigger sales we’ve seen in months.

And for what it’s worth, that’s right at 0.75% of the entire revenue goal for their fiscal 2007….done with just one single order.

As we’ve said what seems like a thousand times now, this story is starting to become really enticing. The top line is getting bigger, and the size of the loss is shrinking. We still have to believe positive earnings are likely in the near future. We recommend you take a chronological look at our coverage; we think you’ll be as impressed by the growth as we are. Click here to see all the commentary.

Click here for the full press release.

To get any new-comer investors up to speed, On The Go Technologies (OTCBB: ONGO) has released a year-end update, listing all of the key changes and accomplishments made over the last twelve months. A link to the complete update appears below, but we’ll mention what we think are the highlights here…..

• Revenues grew from $3 million in 2004, to $5.5 million in 2005, to $30 million in 2006 (thanks to the 2006 acquisition of Island Corporation and Infinity). In 2007, sales are projected to reach $40 million.
• Acquisition debt was reduced by $2.8 million.
• Staffing costs were reduced by $1.5 million.

Overall, we’ve been impressed by the direction On The Go has taken in realizing their full potential. On the other hand, the real question - we think - is one of profits….how close is On The Go to becoming viable? Well, in our opinion, they are indeed headed in the right direction. Aside from today’s year-end update, a quick review of their most recent earnings results (which we blogged on October 31st) reveals what we feel is an encouraging picture. Let’s review what we said then:

Of course, there’s more to life than just the top line. All the other lines, for better or worse, were proportional to the ‘then’ from a year ago. The per-share loss this year was 65 cents, versus a per-share loss of 59 cents a year ago. On a bottom line basis, the company lost $6.3 million, compared to a $1.0 million loss last year. The cost of sales as a percentage of revenue went from 18% to 16%. Like we said, the accounting statements were basically proportional.

What’s our take? We’d be the first to acknowledge we’d rather see profits instead of losses. But, as always, you have to know the whole story to get the right perspective. What the numbers don’t tell you is that the loss this year includes $1.2 million in financing expenses that are scheduled to decrease (significantly) next year. There was also a one-time debt-restructuring loss of $633,479 charged in fiscal 2006. Assuming that a million bucks (or so) between these two big drains won’t be showing up - at least not to the same degree - on next year’s books, then next year’s loss will be pared to maybe $5.3 million (keep in mind these are very rough estimates, and they assume next year will be a mirror image of this year in every other way).

So how’s the company going to make money next year if mirroring last year’s results? It’s a fair enough question. The answer is, by not mirroring last year. The key thing to keep in mind is the acquisition of Infinity - the main reason sales increased like they did - is still in the rear view mirror. All the associated expenses (extraordinary or otherwise), overlap, and required restructuring is still ringing in their ears, so to speak. Give the company another year, at least, to really polish up the merger.

So, as before, we’re very excited about seeing this company’s progress as 2007 rolls along. As of right now, it doesn’t seem to us as if the majority of the market recognizes what could be an undervalued opportunity. In our opinion though, ONGO has some nice potential that could be tapped as more and more quarterly results are released, provided they continue to verify the march towards profitability. Of course, we also feel the best time to own any stock is when it appears to be off of everybody else’s radar.

In any case, here’s the full version of the update.

What a past four days for On The Go Technologies (OTCBB: ONGO)! After closing at 37 cents on November 28th, the stock rallied up to the current price of $1.06. Folks, that’s a 186% gain, and it happened on some of the best volume we’ve ever seen for ONGO. And here’s the kicker……there’s no news behind the run-up (at least none publicly available).

Our thoughts? There are very few certainties in life. The same goes for investing. However, there is one thing we can say with a little confidence about the stock market, and that is, everything happens for a reason. It’s not always a reason we like or understand, but it’s a reason nonetheless.

In the case of On The Go, the reason isn’t clear yet. But, it doesn’t change the obvious - somebody now wants ONGO shares in a pretty big way. Given the degree of gain in a short period of time - as well as the big trend reversal - we think On The Go could finally be getting some bullish traction. We expect the reason for the move to come out later. For now, we don’t want to get bogged down by the ‘but why’ game, as it might get in the way of capitalizing on an opportunity.

With that being said, we have a handful of thoughts on the chart.

First, although not foremost, the cross back above the 20 day moving average has been impressive. With the exception of October’s surge, the 20 day line has been resistance of late. We’d be even more impressed with a cross back above the 50 day line at $1.60, provided it can actually stay above that intermediate-term moving average line.

We’ll also add we don’t necessarily feel now is a great entry spot, unless you’re a speculator who understands these charts have a lot of downside potential to go with their upside potential. (It could be a great entry spot - we just can’t say for sure yet.) We will add, however, that we think this is what the beginning of a long-term recovery could indeed look like. In our opinion, this recent chart merits a closer look; we’ll be watching to see exactly what develops, as we think it could be some much-awaited relief for those who stuck it out. Be smart, as always. 

The register is ringing again for On The Go Technologies (OTCBB: ONGO). Yesterday the company reported a $60,000 sale was made to a major Toronto-based broadcasting company. The company is a long-term customer for On The Go.

You can add this shipment to the growing revenue tally we’ve been monitoring for On The Go, which has become pretty large in the early portion of their fiscal year. Just take a look at some of the recent sales results by clicking here.

It’s almost become an epidemic…..in a good way. On The Go Technologies (OTCBB: ONGO) seems to be shipping out these big orders left and right. Today’s was good for $152,000 worth of hardware - an upgrade for a Canadian medical facility.

A good sale every now and then may seem a little uneventful, but there are two key realities to keep in mind. First, for On The Go, these big sales are more than occasional. Second, these aren’t just ‘big’ sales…they’re giant sales, relative to last year’s revenues. Let’s detail each idea…….

Just take a look at some of the big orders On The Go has filled recently:

• $134,000 on Nov, 1st
• $107,000 on Oct. 17th
• $75,000 on Oct. 13th 
• $170,000 on Oct. 12th
• $230,000 on Oct. 10th
• $200,000 on Oct. 9th
• $176,000 on Sep. 19th
• $300,000 on Aug. 10th
• $313,000 on July 19th
• $827,000 on June 15th

So no, it ain’t some crazy one-time deal.

The second thing to appreciate is just how ‘big’ these big sales are. For a General Electric (NYSE: GE) or a Microsoft (NASDAQ: MSFT), no, these wouldn’t be a big deal. But for On The Go, who pulled in $30 million in sales last year, each $100,000 sale represents 1/3 of 1% of last year’s total revenue (yes, that’s a lot for a company like On The Go). With those kinds of numbers being posted, we don’t think the company’s revenue goal of $40 million next year is out of the question. The strength of the current sales effort certainly looks as if they’re moving in the right direction.

By the way, if you missed Friday’s newsletter, you may want to go back an read our thoughts about ONGO shares.

For full details on today’s sale, click here.

Don’t forget, SmallCap Digest offers free stock ideas and market commentary through our e-newsletter. Be sure to sign up today using the link in the top right corner…and don’t forget to respond to the confirmation e-mail. Or, add us to your RSS feed using the link in the left-hand column.

Although it was only yesterday they reported a big 439% increase in annual sales (thanks to an acquisition more than a year ago), On The Go Technologies (OTCBB: ONGO) is already back at it….they just shipped an order for $134,000 worth of equipment to a film and TV effects outfit. The Digital Media Division fulfilled the order.

Our take is the same…we’re not surprised about the size of the orders, or their frequency. On The Go made some very smart acquisitions over the last couple of years, and is starting to expand organically as well. As we discussed yesterday, a better top line will go far in getting the bottom line back into the black. And clearly, there’s no problem with taking care of the revenue line for On The Go.

For full details, click here.

Would you be impressed by a 439% increase in sales? Yeah, we were too when On The Go Technologies (OTCBB: ONGO) reported that improvement in their full-year results. Last fiscal year (ending in July) the company posted $5.5 million in revenue, but thanks to some key acquisitions, On The Go was able to rake in $30.0 million in sales this year. Not bad, huh?

Of course, there’s more to life than just the top line. All the other lines, for better or worse, were proportional to the ‘then’ from a year ago. The per-share loss this year was 65 cents, versus a per-share loss of 59 cents a year ago. On a bottom line basis, the company lost $6.3 million, compared to a $1.0 million loss last year. The cost of sales as a percentage of revenue went from 18% to 16%. Like we said, the accounting statements were basically proportional.

What’s our take? We’d be the first to acknowledge we’d rather see profits instead of losses. But, as always, you have to know the whole story to get the right perspective. What the numbers don’t tell you is that the loss this year includes $1.2 million in financing expenses that are scheduled to decrease (significantly) next year. There was also a one-time debt-restructuring loss of $633,479 charged in fiscal 2006. Assuming that a million bucks (or so) between these two big drains won’t be showing up - at least not to the same degree - on next year’s books, then next year’s loss will be pared to maybe $5.3 million (keep in mind these are very rough estimates, and they assume next year will be a mirror image of this year in every other way).

So how’s the company going to make money next year if mirroring last year’s results? It’s a fair enough question. The answer is, by not mirroring last year. The key thing to keep in mind is the acquisition of Infinity - the main reason sales increased like they did - is still in the rear view mirror. All the associated expenses (extraordinary or otherwise), overlap, and required restructuring is still ringing in their ears, so to speak. Give the company another year, at least, to really polish up the merger. That will go miles in getting the company closer to profitability, even if it’s not precisely clear which expense lines are going to get smaller. And hey, the top line - even after the Infinity acquisition - is increasing too….just read back through all the other ONGO blog entries.

A risk? Sure - any stock includes risk, and this particular one may also require plenty of patience. But, the potential progress On The Go could make by next year makes this an idea worth considering.

For the complete fiscal results, click here.

A few weeks ago when we saw one come in, we were impressed. Now, however, On The Go Technologies’ (OTCBB: ONGO) sales momentum would make it unusual NOT to be hearing about all these big fish they’ve snared. Today’s single-sale total is worth $107,000…a purchase made by a North American stock trading firm.

The sale pushes the two-week sales tally to $2 million, which is a record for On The Go. And for a company that did less than $10 million is sales last year, it’s an uncanny increase.

We recommend you review our more recent comments about On The Go by clicking here. The transformation we’ve been archiving is an incredible ‘night and day’ story that needs to be fully understood to be fully appreciated.

Although we’ve been telling the same story almost ad nauseam, it’s still a story we’re glad to be able to tell. On the Go Technologies (OTCBB: ONGO) has made yet another big sale, this one to a financial service firm. The order - for $75,000 worth of servers - will be shipped to one of the firm’s Toronto office (presumably the one responsible for technology), although the company serves clients across the globe.

We won’t repeat ourselves here, but if you want to catch up on all the good news, you may want to scan through all of our recent blog entries and newsletter editions covering On The Go. Just click here.

And yes, we think if you’re looking for a higher-odds turn-around play, this may be one worth a much closer look. 

All big rallies start as small rallies, and while we’re not saying On The Go Technologies (OTCBB: ONGO) is definitely on the road to a big move higher, we can say there’s a significant bullish milestone being hurdled on the chart today.

The 16%/45 cent rally has pushed the stock up to $3.20, and well past the 50 day moving average line at $3.05. This is the first instance of shares making it above the 50 day line since June. And, June’s cross above the 50 day mark was a mess, rooted in volatility, and resulting in a sharp decline over the following two weeks. This time, the cross-over has been smooth, and made on rising bullish volume. This is one of the key reasons we think now could be a new uptrend for ONGO…it has the potential for longevity.

In any case, the stumbling blocks are slowly being knocked out of the way. Savvy traders would probably want to see a couple of closes above the 50 day average, just to see if this new life for shares doesn’t lead to the same results as last time. Like we said, in our opinion, it’s apples to oranges. But, it never hurts to wait for better odds.

Don’t forget, SmallCap Digest offers free stock ideas and market commentary through our e-newsletter. Be sure to sign up today using the link in the top right corner…and don’t forget to respond to the confirmation e-mail.

It’s about time! We’ve been reporting good news on top of more good news about On The Go Technologies (OTCBB: ONGO) since June. And, while some press releases are just ‘fluff’ pieces to garner attention, we’d be the first to say that On The Go’s news was of real substance. The company has been reporting huge single-order sales for months now, which of course is job #1…taking care of cash flow. In fact, they reported three more big sales in just the last few days:

1) A $230,000 order from Canada’s largest university
2) A $200,000 order from a major North American business
3) A $170,000 order from a Great Lakes area cement manufacturer
(click on any line to go to the full story)

Of course, these press releases were just three more installments of what has become a very long string of impressive revenue reports, which we’ve chronicled in detail with our blog and newsletters.

The frustrating part for shareholders has simply been how all that good news hasn’t really helped shares all that much. While we are fully aware that ‘it happens’, it’s still an interesting disconnect between a stock and a company…as we described in our October 3rd edition.

Well, sure enough, after we pointed out how shares may be undervalued, the market finally tuned in to see what was going on. Apparently, they liked what they saw. Maybe that’s why shares are up by more than 30% since October 2nd.

Better yet, this may be a bullish omen of things to come. Volume has been consistently higher than we’ve ever seen it for ONGO shares, so we at least know the trading interest is there on one side or the other. Plus, the chart has made some enormous technical progress this month that could point to a bigger recovery move in the works. As we said less than a couple of weeks ago, we think ONGO is well worth putting on your radar, especially now that it’s getting a little traction within the investment community.

There’s an old piece of investment advice…“Don’t buy stocks - buy companies”. Of course, we’ve never agreed with the advice, and have stated so numerous times. And, odds are we’ll continue to disagree until the end of time.

It’s not that we don’t understand the philosophy, since we do. However, the philosophy is flawed, in that it assumes stock prices are rational and reflective of their actual value. We all know this is just not the case.

The truth of the matter is, stock prices are often disconnected from their underlying company’s performance. Case in point - On The Go (OTCBB: ONGO). The corporation has been seeing exponential growth - organically, and through acquisition - yet the stock price has continued to sink.

Does it make sense to us? No. Do we think ONGO shares are undervalued? Yes. Does it matter? Not really - the market and individual stocks are going to be blown around like dust in the wind from time to time. Your job as an investor (active or passive) is to make as much money as possible. You only make money if your stocks go up. We can rationalize and justify all we want, but unless we buy low and sell high, it doesn’t mean a thing. Charts can help you do this in a way that fundamental analysis can’t.

And the point of the rant? Regular readers will know we examine the fundamentals and technicals (charts) in pretty equal amounts. Many investors don’t, but we’ve seen how not doing a good job with both can set up a problem. Usually a weak chart is temporary for a strong and growing company, but it’s a weak chart all the same. The best time to buy a great company is when its chart is at a low point and starting to move higher, or in a strong uptrend…admittedly easier said than done. However, doing so can stave off a lot of headaches, which brings us back to our key point…

On The Go is a great company. We think eventually its stock price will reflect that. But, clearly it hasn’t been easy to own in a while. Is the rest of the market missing the opportunity? We think so, but until the rest of the market also actually gets behind the idea, it doesn’t matter - ONGO is hitting a wall. The technicals have been pretty persistent in sending the message. No, it’s not logical. But, when the connection between the stock chart and company results is finally re-kindled, we still expect ONGO shares to do well. Be watching the chart for early hints of such a move. And of course, don’t be surprised if it’s an earnings or fundamental data that acts as the catalyst.

The irony is over the last few days, we’ve seen a few bullish red flags…namely, volume. In mid-September we saw a string of high-volume selloffs that could indeed be a capitulatory move. More recently, we’ve seen some growing-volume buying, which is pretty easy to come by once all the big sellers are out of the way. It’s possible we could be at a key upside reversal for On The Go…something we’re long overdue for, but have yet to actually see. It’s definitely worth watching this week and next week. Maybe now’s the time for the re-connect. 

First it was a $425,000 order in June; now it’s a $176,000 order from the same company. What we’re talking about is On The Go’s (OTCBB: ONGO) orders from a particular Toronto-based television and movie studio. The orders are being fulfilled by On The Go’s division ‘OTG Creative’…the arm designated to supply the entertainment industry with the high-powered equipment needed to create special effects and digital images. Apparently the studio isn’t a bad client to have, especially when they come back for more.

However, we’re not surprised by the news at all…we’ve seen this kind of growth and revenue expansion from On The Go since we first profiled the company in May. And, we followed up just a few days ago with enormously good news about their revenue forecast (the official results come out in October). Although the details are not yet available, as we said then, we expect whatever October’s news is to be very positive. Be sure to read both of those newsletter editions to get the whole scoop…it’s a very impressive opportunity.

As for the stock, as we also said on the 13th, the radical devaluation we’ve seen over the last couple of years just doesn’t jive with the company’s renewal over the last year or so. The company - through acquisitions - is on track to do more than $30 million in sales this fiscal year, as opposed to less than $10 million last fiscal year. Better than that, the loss is shrinking, almost to the point of a swing to profit. Like we discussed in our most recent update, the return to profitability is very near, with positive earnings maybe even coming when they report quarterly results in a month or so…we’ll not assume anything though.

In any case, the current price of $3.00 pales in comparison to where it was a year ago…at $60. The disconnect is simply that the company everyone is now pricing at $3.00 is not even close to being the same company On The Go was in the fall of 2005. That was then - this is now.

We just heard about another big sale from Canadian-based On The Go Technologies Group (OTCBB: ONGO). This one was good for $300,000, but the order actually pushes this same customer’s total orders past the $1 million mark. The client was (is) a major Canadian securities and mutual fund firm. 

We’ve said it before, but it’s worth repeating…these sales to major institutions are a huge deal. Not only are margins pretty big on large orders, but each one is a tacet endorsement of On The Go, telling the world that the technology provider can get the job done.

Here’s a snippet from the release (to view the full release, click here)…

On The Go Technologies Group (OTC Bulletin Board: ONGO), a leading multi-industry computer hardware, software and systems integrator announced today that the company has received a $300,000 hardware order from Canada’s largest securities, mutual fund and wealth management firm, bringing their calendar year to date total to near $1,250,000. The latest HP Blade System order, to be shipped in the new few weeks, is part of a continued upgrade of the client’s infrastructure involving OTG shipments since January 2006 and represents over 25% of its total commitment to date.

Headquartered in Toronto, Canada, the client manages approximately $51 billion in assets and has1,887 independent financial advisors and 517 insurance agents located in approximately 651 independent offices across the country.

OTG President and CEO Stuart Turk said, “A million dollar sales mark with any client is one to be proud of, especially so with a client of such industry recognition and standing. With this latest order, this customer has joined a growing group of select clients with sales and services requested amounting to $1M and more. The shipment is a strong kick-off to our new 2007 fiscal year. We look forward to continuing serving them in quarters to come.”

If you have yet to hear, On The Go Healthcare (OTCBB: OGHC) will undergo a reverse stock split sometime later this week; the tentative date is the 10th. The split will convert every 50 shares issued into one share. You wont need to do anything as a result of the split - your brokerage firm will take care of any registration and accounting work. Just be aware your balances and positions for OGHC may look skewed while the restructure is completed, although it shouldn’t take too long to resolve.

Superficially the split shouldn’t matter to current owners, as it’s the equivalent to making change…the dollar amount remains the same. However, from a legitimacy perspective, it’s a smart move. No matter how great a company is, once a penny stock starts to approach single digits (OGHC is currently trading at 9 cents), investors are leery to even consider buying it. By pushing the price up to the mid-$4 range, any penny-stock stigma should be overcome.

On The Go Technologies Group (OTCBB: OGHC) has a new sales director. John Pietrocupa , formerly of General Electric’s IT division and Compucom, is now On The Go’s sales director of the enterprise division. The enterprise division is focused on international banking, hotel, pharmaceutical, insurance, and automotive sectors. In simplest terms, that’s right up John’s alley. We think it’s a good fit, and should help enhance On The Go’s bottom line.

By the way, we’ll also remind you On The Go is on a sales roll. The company has shipped out some major orders in the last several weeks, which could lead to some pretty surprising results (in a good way) when quarterly earnings are released. Be sure to check out OGHC’s recent blog entries as a reminder of the big orders the company has landed in just the last couple of months. Now, with a former sales executive from a blue-chip company stepping in, we’re expecting revenue to keep growing exponentially.

As for the stock, it hasn’t been an easy trip to take over the last few weeks. However, the bigger picture has to be remembered. OGHC’s recent chart doesn’t look all that different than the market. Given that 3 out of 4 stocks move the same direction as the market, we have to allow for some general weakness within our positions every now and then. We still contend On The Go shares have tremendous potential - especially if the overall market gets righted.

Support is now at 10 cents, and you can see how shares have been in a consolidation mode since pulling back in June. Plus, seeing all that room for recovery - from just a few weeks ago - makes the current price of 11 cents a very enticing entry level.

Cha-Ching! On The Go Technologies (OTCBB: OGHC) just shipped $313,400 worth of goods to an internet television distribution company with an international footprint. Is that a big deal? Definitely! Just for perspective, don’t forget On The Go’s biggest sale ever was the $827,000 order placed about a month ago. The dollar amount here isn’t quite as high, but on a relative basis, it’s still a nice little padding for the top (and bottom) line.

And for those who are still trying to figure out what ‘internet television distribution’ is, that’s just the fancy way of saying ‘we can show you cable TV on your computer just using an internet connection’. The benefit to the user is obviously mobility. Hence the name ‘On The Go Technologies’.

As for the stock, June wasn’t great, but we’ve managed to move back above the 3×3 displaced moving average, which is at least a good start on a bounce. It also helps to see both of the stochastic lines moving up and out of the oversold zone. The pump is primed - let’s see if we can get some traction this time.

More good news from On The Go (OTCCBB:OGHC) today….they just received an order totaling $827,000. That’s OGHC’s biggest single sale in company history.

Are we surprised? No, not really. When we highlighted recent results in yesterday’s edition of SmallCap Digest, it was clear the company knew how to sell (you don’t increase quarterly revenue by 578% without knowing how to sell your product). This is just more of the same from On The Go, which has turned into an incredible turn-around story. Oh, and just for some perspective, last quarter, OGHC reported sales of $8.9 million. This single order matches almost 10% of last quarter’s revenues. In other words, it’s a big deal.

The customer is a Toronto-based polytechnic school (post-secondary). They needed servers and workstations, and On The Go was their chosen supplier.

As for the impact of the order, any sale of any size helps bottom lines, but the true impact may extend even further than that. This is a high-profile transaction, and establishes a lot of credibility for On The Go. Other institutions - educational or corporate - are now more likely to consider On The Go as a potential vendor. Don’t be surprised if we’re reporting a new record-sized sale for On The Go within a few months, now that they’ve upped their status as a technology provider.

Shareholders may have been getting a little frustrated with OGHC. This one was sinking in June along with everything else. All of that weakness was shrugged off yesterday, though, with a big $0.05 gain. OK, a nickel isn’t ‘big’ in terms of what you can buy with it, but for OGHC yesterday, that five cents represented a gain of 38%. There weren’t too many stocks that did that well on Wednesday.

Today’s follow through temporarily pulled shares above a key resistance line extending all the way back to February. As of right now we’re back under that line, but we still like the buying pressure we’ve seen over the last couple of sessions. Besides, the day isn’t over yet, and we’re sure there are a few traders who are locking in some profits from yesterday’s move, and today’s even stronger open. As we’ve been seeing since April (the longer-term), there are far more buyers than sellers.

The key level to watch from here is $0.23. Even all of the high volume gains in late April weren’t enough to actually get the stock above 23 cents. That same resistance was verified with the run in mid-May, when 23 cents was as high as OGHC could go. Today’s high (so far) has been 22 cents. While we like the risk/reward scenario at the current price of 19 cents, a move to or above 24 cents would be a major breakthrough, alleviating most concerns about continued resistance. If that line is breached, this stock could really take off.