Get Out Of the Passing Lane, Old Dominion and Yellow Roadway – Bulova is Barreling Through

News from Bulova Technologies, (OTCMKTS:BTGI) 

Uptick Newsire – 12/15/2015

YRC Worldwide Inc. (NASDAQ:YRCW) and Old Dominion Freight Line (NASDAQ:ODFL) may already be in the space, but Bulova Technologies Group, Inc. (OTCMKTS:BTGI) is poised to carve out a nice piece of the transportation pie.

By James E. Brumley
Nov 4, 2015 8:35:01 AM PST

Contrary to popular belief, demand for transportation services isn’t falling. That weakness has largely been reserved for rail carriers, and to a lesser degree, airfreight services. Demand for road -shipping – trucking – services remains solid, boding well for names like Old Dominion Freight Line (NASDAQ:ODFL) or YRC Worldwide Inc. (NASDAQ:YRCW).

The evidence: The ATA Truck Tonnage Index, which reflects the total amount of weight hauled by tractor trailers in any given month, rose by 0.7% in September, and is back en route to multi-year highs. Moreover, the ATA (American Trucking Association) predicts that demand for OTR services will continue to grow, and by 2026 will be nearly 30% greater than what it is now despite the growth of alternative means of shipping.

In other words, it’s a great time to be in the trucking business.

While the stats and projections bode well for the aforementioned YRC Worldwide and Old Dominion Freight Line, there’s a young up-and-coming company that’s newly in the business – via an acquisition – that may be an even more compelling bet simply because it’s not 100% reliant on the freight industry to drive revenues and profits.

 Those who know Bulova Technologies Group, Inc. (OTCMKTS:BTGI) well will know it’s a highly ¬diversified organization, though they may not recognize it as a play on the growing OTR freight industry. That’s because it’s not been one of the company’s focal points until June when it began the process of acquiring Twiss Transport.

Twiss Transport, consists of Twiss Transport Inc., Twiss Cold Storage, Inc. and Twiss Logistics, Inc. Together, the three Twiss companies provide medium to long haul, refrigerated and dry transportation and storage services to customers throughout the continental United States.

By virtue of the amount of revenue Twiss brings to the Bulova Technologies Group, transportation services are now arguably the focal point of BTGI. Revenue for Twiss exceeded $30 million per year before Bulova bought it, and the company anticipates the transportation division alone generating more than $50 million in revenue next year, and contributing more than $6 million worth of earnings to the company’s bottom line.
For comparison, Bulova Technologies Group reported a total of $1.8 million in sales over the past twelve months, before the Twiss deal was consummated.

It’s this rapid revenue growth that underscores a key detail about BTGI right now that can’t be overlooked – it’s in the midst of a wave of acquisitions and growth initiatives that have yet to be factored into any previously-reported quarterly results.
For instance, Bulova Technologies Machinery LLC – a division that sources and sells machining equipment – is expecting to generate $15 million worth of revenue in 2016, versus total of less than $2 million over the course of the past four quarters.

Against that backdrop, the company’s mission statement not only makes perfect sense, but underscores why investors would want to take notice of BTGI before other investors recognize what’s underway. Bulova Technologies Group has said:
The value of Bulova Technologies Group, Inc. will be enhanced by the managed increase in diversity when employed as a fundamental precept in the business development for the group … becoming leaders in the delivery of precision machining centers; the introduction of a simplified orthopedic cast system into the marketplace; the penetration of the enterprise data management and control software arena; and the utilization of captive product transportation activities.

It can be added and re-emphasized that this focus is new for BTGI, and the reason investors will want to focus on the future rather than the past – the future for Bulova looks very little like the past. The coming year should very much be a coming out year for the company, and the stock.

For more on Bulova Technologies Group, visit the company’s website at

James E. Brumley is a paid contributor of the Small Cap Network. James E. Brumley’s personal holdings should be disclosed above. You can also view Small Cap Network’s complete disclaimer and disclosure.