In a recent edition of the SmallCap Digest, we compared news from small companies to a lightning strike - it can happen anytime, anywhere…without warning. But when it does, it’s a big deal. Well, lightning struck yesterday when Execute Sports (OTCBB: EXCS) announced a 181% increase in European orders for snowboards in 2006/2007. That raises overseas sales by 51% on a year-over-year basis. For lack of a better way of saying it, that’s not too shabby, especially considering European snowboard market is estimated to total about $100 million on an annual basis.

Just for some perspective, Execute’s 2005 revenue totaled about $1.4 million, which included domestic (U.S.) sales. Needless to say, even just capturing a small piece of the European snowboard market share would still be a big boost for the company’s top and bottom lines. Based on the way Execute is fostering the foreign market, they’re on track to take a big piece of that pie.

By the way, Execute’s snowboards are marketed under the ‘Academy’ brand name.

As for the stock, it hasn’t necessarily been easy to own lately.  The question is just one of when all this good news will start to get some traction with the investing community. It’s a great corporate story…Execute’s products are top-notch, and they’re getting their stuff to the consumer through some powerful distribution channels. Yet, this recent IPO has had a tough time getting attention. We still like the company and the stock, and if you do too, the recent share price of 24 cents makes for a great entry point - especially as oversold as it is right now. Just keep in mind how young stocks like these can take some time for other investors to find. But when they do, they have the potential to grow exponentially. 

On a side note, we are relieved that the recent pullback has not been made on heavy volume. If anything, it’s been a light-volume selloff, which is a subtle hint the masses aren’t absolutely terrified to own this stock. We attribute a lot of the recent weakness to general market malaise.

If you’re new to this site, or unfamiliar with the company, it might be worth taking a look at our initial profile on Execute Sports by clicking here. You’ll be able to see the reward potential is still pretty high, despite the risk.