Business Analysis: We Ve Been In The Small-Cap Business

We’ve been in the small-cap business for over a decade, and in all that time we’ve never met with a company that didn’t have aspirations of becoming a multi-billion dollar business. Of course, that’s the point of being in business, but over the years we’ve honed the skill of being able to select companies that have the best chance of actually achieving that objective. We use a multi-faceted approach to make our selections, and one of the key factors in our assessment is whether or not the company has the ability to execute against its stated business objectives. So after we begin covering a particular company, we like to keep a close watch on whether or not they’re delivering on promises.

With that in mind, we wanted to provide an update on BioHiTech Global (“BHTG”). We’ve been covering the company since January of this year, and they recently released their results for fiscal year 2016.

The company’s core digester business grew nearly 56%, with a favorable change in sales mix attributable to a decrease in service and parts revenue and increase in equipment sales. The increase in equipment sales is the direct result of the company’s ongoing business development efforts, which we expect will continue in 2017.

We also anticipate significant growth in international sales this year, as BioHiTech Europe continues to gain traction overseas. In 2016, BHTG’s international sales topped $560,000 representing a 387.2% increase year over