TOP IDEAS: Fiscal 2015 was a robust year for IWG Technologies Inc. (TSXV: IWG) and bigger market opportunities are emerging. The stock is up 38% and is still a small cap value buy.

Not many small caps are up in 2015 but IWG Technologies Inc. (TSXV: IWG - $0.30) stock is, after reporting record sales and profits. Today the Company’s share price trades 38% higher since becoming an Investorfile Top Ideas stock.

IWG Technologies Inc.'s main operating subsidiary, International Water-Guard Industries (IWG), supplies aircraft manufacturers with product technology to improve the quality of on-board water systems for passengers and crews. The Company is considered one of the world's leading providers of flight-certified water treatment units and specialized aircraft water system components for the business aircraft market. IWG offers a range of products to meet all aircraft potable water systems' needs, from water treatment units including components such as pumps to on-demand water heaters, tanks and water control systems.

Fiscal 2015 was a record year for this Company’s financial results. For the 12-month period ended September 30, IWG Technologies reported revenues grew 29% to $9.5 million. The revenue growth generated big profits. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) were up significantly at $2.32 million. Net income for fiscal 2015 jumped 71% to $1.28 million or $0.033 in earnings per share.

IWG has built a solid foundation, supplying on-board water systems to the medium and large, long-range business aircraft marketplace which continues to be a growing sector of the aircraft marketplace. Product development and acquisitions by the Company in recent years has assured that their water systems are at the leading edge of aviation market requirements, not only for business jets but now for commercial jets, too.

New IWG products include on-demand tankless water heaters, which are lighter and smaller and ideal for aircraft showers and VIP galleys. The Company sells some of these products to aircraft finishing centers which incorporate these water systems into specialty configured cabins for long-range commercial jets, such as the Boeing 787 Dreamliner and the Airbus 350.

For 2016, IWG Technologies has its eye on bigger opportunities in the commercial jet market, including fleets of aircrafts operated by low-cost carriers. The Company’s tankless water systems not only improve the quality of on-board water, but they save airlines the cost and logistics of carrying bottled water on flights. Product sales to this marketplace could be a significant catalyst for sales growth.

Since our first blog post (See: IWG Technologies is soaring in small cap value), this Company’s financial results and outlook continue to improve. That said, we reiterate our view that small cap investors should continue accumulating the Company's shares from the current trading levels up to a high of $0.40. If you annualize the recent fourth quarter results (EPS $0.01), the stock trades at less than 8-times earnings which is inexpensive for a growth company. Longer term, if you factor in the aforementioned growth opportunities, the current stock price of IWG Technologies is a bargain and could easily surpass our accumulation target for more upside.

For a small cap, the Company maintains a very strong balance sheet with a net cash position of $3 million.

IWG Technologies has approximately 39.2 million shares outstanding.

The Company’s websites: www.iwgtech.com and www.water.aero.

Author Ownership Disclosure: TSXV: IWG - YES

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