EXCS: Show Key Characteristic Of Small Cap Winners

One essential characteristic of any emerging small cap company is steady growth. Execute Sports Inc. (OTCBB: EXCS) exemplified just that with its recent Q3 financial update (for the three months ended September 30, 2006). A number of shrewd business moves such as Execute’s acquisition of Academy Snowboards and the development of a number of extremely fruitful e-commerce deals led to Q3 net sales that represent a 453% increase over Q3 ’05. In addition, sales for the first 9 months of 2006 hit $1,634,456, an increase of nearly 21% over the same time period during ’05.

In order to gain traction in the flourishing $12 billion dollar action sports industry, EXCS is however paying the cost. Net loss for the three months ended September 30, was $1,065,502. Commenting on this, the news release states ”The three month year-over-year net loss increased primarily due to non cash costs related to the amortization of our debenture warrants, beneficial conversion feature, loss due to conversions of the debenture, loan interest, the reserve created for strategic loans made to an unaffiliated company and increases in selling and advertising expenses”. Although a loss remains on the books, the company’s aggressive goals for future growth should make that a thing of the past in the not so distant future. Pile that on top of Execute’s award winning Kampus Shoe Technology and the company’s industry all star management team and just like that you have one of the most diverse investments into action sports ever. Let alone for $.035

With a budding presence in the hearts of big name retailers such as Dick’s Sporting Goods, The Sports Authority, and Modell’s, EXCS is building solid brand recognition as well as growing revenues.