Blackline Safety goes with Organic Growth
Blackline Safety recently released it's second quarter results.It showed only a 3% increase in revenues.It is clear that no "combination" or mini-merger with Awesense occurred in this quarter.And BLN says that the coronavirus did reduce their growth of new sales.However the vast majority of their steady customers are in essential businesses.Another bonus in Q2 was that recurring revenue jumped from $5.6 to $6.6 million.Blackline also tells shareholders that it partnered with a company called Nevada Nano to develop a new combustible gas detector.There are no gamechanging events here but Blackline continues to steadily grow despite obstacles.And this blog feels that Q3 and Q4 will see an improvement.
Expanding their Market Niche
Blackline operates in a small but growing niche.And the combustible gas sensors developed by Nevada Nano could be a nice tuck-in acquisition to add to their main business.Nevada Nano is an American company and quite a bit smaller ($26 million in sales).The synergies here are more obvious than with the Canadian Awesense.But Blackline still needs to know a lot more about this sensor producer yet.
On the positive side BLN has a solid capital structure.It has little debt and only 45 million outstanding shares.Once it has done it's due diligence (which now is almost complete for Awesense) it may soon be time to pull the trigger.This would add gas detector sensors and energy monitoring to it's stable of products.More importantly this would likely lead to a double digit growth rate in revenues in 2020.And this would send Blackline Safety's share price towards $7.50 by the end of September. https://www.fool.com/www.zacks.com
Blackline operates in a small but growing niche.And the combustible gas sensors developed by Nevada Nano could be a nice tuck-in acquisition to add to their main business.Nevada Nano is an American company and quite a bit smaller ($26 million in sales).The synergies here are more obvious than with the Canadian Awesense.But Blackline still needs to know a lot more about this sensor producer yet.
On the positive side BLN has a solid capital structure.It has little debt and only 45 million outstanding shares.Once it has done it's due diligence (which now is almost complete for Awesense) it may soon be time to pull the trigger.This would add gas detector sensors and energy monitoring to it's stable of products.More importantly this would likely lead to a double digit growth rate in revenues in 2020.And this would send Blackline Safety's share price towards $7.50 by the end of September. https://www.fool.com/www.zacks.com
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