With its key customer gaining attention, it appears that investors are becoming interested in AVT Inc. (AVTC.OB), a developer of automated and self-service retailing systems, which saw its share price jump over 10 percent to $4.42 on Friday.
For readers who are new to AVT Inc., here's a brief overview of its business...
Corona, California-based AVT Inc. is a manufacturer of vending systems that dispense a wide variety of items - from health products and cosmetics, to swimsuits, sunglasses, coffee, and smart phones. The company has vending systems throughout the Los Angeles, Orange and Riverside, California counties.
The world market for intelligent vending machines is expected to more than quadruple over the next few years, from around 500,000 machines in 2012 to over 2 million systems in 2016, according to a report published by Intel Corp. AVT is optimistic that it will be able to capitalize on this growth and a secure a large slice of this $42 billion a year market.
One of AVT's key customers is Medbox Inc. (MDBX.OB), which has been garnering attention ever since the legalization of recreational marijuana in Washington and Colorado last November.
Medbox was trading in a range of $1.24 to $3.45 from Nov.17, 2011 till Nov.8, 2012. However, in the following week, the stock rocketed upward, reaching $215 per share on Nov.15, 2012, after being featured in a Wall Street Journal MarketWatch report. Though the stock has now given up most of its recent gains, it still hovers around $98, up from its low for the past 52-weeks of $0.03.
AVT has been working with Medbox since 2010. Last October, AVT announced it has developed a new line of self-service medicine storage and retrieval systems for Medbox.
Looking ahead, AVT expects to report revenue of up to $26 million in 2013, growing up to $50 million by year-end 2014. The company anticipates income of up to $9 million in 2013 and $13 million in 2014.
AVTC.OB has traded in a 52-week range of $0.75 to $6.49. In the last 1 month alone, the stock has gained 198%.
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by RTT Staff Writer
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