 In this video I'm going to talk about the best penny stock ever or what I believe to be could be the best penny stock ever and I'm not talking about in terms of the fact that it's going to go up 5x overnight or anything like that. But the best penny stock ever in terms of its gradual growth over time and its core fundamentals as a business I think it's a really really solid business that we're going to be looking at today. So I'll go through the research, the information that I've got for you and but before I do that please leave the video a like, if you're new to the channel make sure to subscribe we go through penny stock videos, research and all that good stuff. I would say I'm not a financial advisor, I'm a business teacher in my daily life but I'm by no means an expert on the stock market. So I'll go through the stock I'm talking about today, it's called SG blocks and the ticker symbol is SGBX and bear with me here, yes it's like my definition of a penny stock is anything under $5 usually. So bear with me it is a bit over that right but it's a bit volatile so it's kind of going in and out that level. It was just a few days ago below the $5 but this is one of these stocks that is a lower price that is going to increase massively. So I'll go through it and why I think that. But you'll notice over a month it's just going up gradually and it's just got this gradual growth to it and it has grown a lot but it's already up a fair bit where I think that it's just going to have some decent gradual growth over time. And it's one of these long-term holds I would say. I'll go through why that is. So who is the business? So SG blocks what they do is they create different apartments, they create, they can create cafes and create all sorts of stuff but they create them through this using canisters and we'll go through the information on this containers. This is a Starbucks example and the good point about this brand in terms of them producing these types of buildings by designing them this way. What they're actually doing is producing them at a record speed at a lowest cost price and you've got to think about the economic ecosystem we're currently living in. The economic climate. More and more people are moving to buying stuff online, getting takeaways, buying stuff online, terms of goods. If there is a way where there's a business that comes in who can actually reduce the cost of the brick and mortar. If they can get the cost massively down through this that is going to be attractive for the business in terms of actually partnering with SG blocks because they can get their prices down. Up to where actually brick and mortar actually becomes more feasible again. And that's the problem with brick and mortar because there's loads of overhead costs. What this does is it reduces those overhead costs based upon their design model of their buildings. We'll go through this in depth. So what are the investor highlights? So we've got a targeting large verticals. So what does that mean? What does that mean? It means significant opportunities in medical, commercial, residential and hospitality construction markets. So that these buildings, these designs of the buildings that they've got is applicable to loads of different industries. Then you've got a diversified revenue base. Multiple established recurring revenue streams including sales, fees, services and licensing. And some of the best businesses out there do have multiple revenue streams. So the fact that they've got a range of business revenues is really important. It's also got growing a new business pipeline. It's got $24.9 million construction backlog September 30, 2020 and substantial increase in revenue expected in 2021. So it's growing its revenue. It's got a healthy balance sheet. It's growing revenue though. It's growing revenue year on year. It's a growth company. Strong balance sheet as it says here. There's no debt. That is important because you'll have a lot of stocks that have a lot of debt. And this one doesn't. It's good financially. It's financially sound. Vertically integrated SG Echo facility provides significant opportunity to control costs, keep those costs down, capture revenue from design, sales, build out and testing operations. And also you've got the CSR part of it. What does that mean? It means corporate social responsibility in the fact that it actually is good for the environment. They're actually being socially responsible. What they're doing is safe and green in terms of what they're deploying, which does give it a good brand image. We talk about brand image. Ultimately they just need to build their brand image up favor and favor, build the revenue up, build the contracts up. This is one of these stocks that can just gradually move and move, right? So let's go into this. I've just got to say before we move on to favor information, thank you everybody for all the support you've been giving on the channel. Everybody's been making sure the channel absolutely blows up in it. My videos hit into the search results and it's just absolutely fantastic. The fact that 107,000 people have watched my videos. Well, maybe there's a few people that have watched several videos, right? But the fact that so many people have watched the videos is just, it's completely mind boggling to me. So thank you for all the support on the channel. And I really do appreciate that. Continue to like, continue to subscribe. Much appreciated. Another area which is really interesting is that they're actually helping with what's going on in terms of the pandemic, right? They've got rapid and accurate testing, meeting significant needs. And they've got, so they've executed and managed supply agreement and purchase order for 2 million of the other vaccines. It's formed a joint venture and you can see it. So it's involved in this area as well, which is really good. We, what do they do? So they repurpose shipping containers into iconic structures. So they take a shipping container, they repurpose it, they redesign it, they add stuff to it and create either modular homes out of it, or they create businesses, like for example, the small Starbucks. And it's a massive market. So what is the market potential here? So it's saying targeting large verticals for sustainable growth. So commercial construction, $194 billion market opportunity, $112 billion opportunity for modular construction. Diagnostic market by 2027 of $24 billion and single family housing of $94.7 billion. So they're not just creating these modular designs for, say for example, just for commercial reasons. They also could do it for families as well. So there's a lot of different strategies and different areas where they can build these products and get these products out there. So what are the benefits of the product? What is the benefits of the company? So first of all, it's got an absolutely fantastic product, I think. I think it's a really good product. I think it meets the needs of a changing economic climate. We need to get these cheaper units, particularly for businesses who are struggling. Think of all the startups that aren't starting up right now in terms of brick and mortar because it's just too expensive for them. This makes it cheaper for them to actually start up and get a brick and mortar store. So there's a lot of potential here for this company to just continue to grow here. So it meets the needs of consumers. And also, there's revenue growth. There's year-on-year revenue growth, which is important. My only concern is from what I know, from what I know, there's not really any patents. Patents, please comment down below if I'm wrong on that. But from what I could see, there was no patents on this. So that means that there's not necessarily a high barrier to entry. There's nothing stopping another company coming in and repurposing the same aspect. So there is not much high barrier to entry. So what do they need to do? So their strategic direction is growing the revenue, is being the market leader in what they're doing, but also growing their brand image to be in the company to go to for this particular type of products. So that's what they've got to do and marketing costs money. But the fact that they don't have a patent, it's only a slight concern. And I'll be wrong on me to not say, if I've got any concerns of a company. But that is just a slight concern, right? I think the company overall is brilliant. So you can see here also a recent agreement with Blink as well. So which is an EV charging station. So as EV charging stations, as they expand these, this company is going to grow with it as well, because they've signed an agreement. They've got 1.7 million for free projects in Minnesota, 2.9 million for a series of buildings in New Mexico, 300 units of workforce housing, completed more living hospitality prototype, 4 million hospitality projects in the Everglades. And then again, the agreement here with Blink, which is massive because as the EV industry grows, then this agreement is just going to become even more attractive. So growing diversified revenue base. So they're expected to grow at least 400% in revenue compared there to 2022, 2020, should I say. So they're expected to grow here to about 20 million in revenue, which is a huge increase, 400%. This is a huge growth company. You see it going up and up here. So there's a lot of potential, right? But we also have to be careful, haven't we? Because this is ambitious in terms of the projections, but it's doable in terms of the business fundamentals and the contracts that they're building already. But we always got to say, like when they do have ambitious targets, they do got to meet them, otherwise it really does impact the share price. When sales targets are not met, it can have an impact on the share price and that's what we don't want to see as investors. So bear that in mind. But do they have the capability of getting this 400%? Yes, they do. And to be fair, 20 million in revenue, you've got to say that you're paying a premium in the facts that they're going to grow much more in the future. They're not going to just grow 400% in revenue, they're going to grow 4,000% in the future years. So all the future years, next top one or two years, right? Of course you're paying a premium for that. But what can it be used for? They can use them for retail structures, private residents, mobile showrooms, and semi-payment structures as well. So what is the share price on it? It's on $5.96. You've seen a bit of a run up here. This is the sort of stock that I'd buy in increments so you can get your average position, right? So maybe every week you buy, I don't know, $50 worth or whatever it is that your income level allows you to do. So $5.99 here. What does the analysts say though? What are the analysts saying? So they're saying it's a price target of $9 in 12 months, which is obviously significantly more than it is at the moment. So this is a gradual growth company. I'm not saying this is going to $500 million X or anything like that. It's just a really gradual kind of what seems to be a fairly safer investment. Now with any investment, there's always risk, right? And I'm not a financial advisor, I'm a business teacher. But it seems their business model, the product they're doing, it's a fairly safe investment. It's not necessarily massively speculative really. They've got a solid product that they can sell, right? And I think that if you can catch it at a dip, right, but I would just incrementally increase your position just to get your average. That's what I would do. I would consider doing anyways. So thanks for watching this video. If you're new to the channel, if you found this helpful in any sort of way, then do subscribe. And I'll see everybody in the next video. Don't forget to like. I'll see everybody later. Have a good day.