Welcome back to the channel everyone. The markets have been very volatile lately
but in this video, I share with you one top penny stock which is not only backed by tangible demand
but it is showing some good market resilience, is revenue generating and improving lives.
This penny stock specializes in the development of science-based products
for the global consumer packaged goods market, which has a huge addressable market opportunity
and is already seeing triple digit growth having recorded over 200% revenue upside.
So you certainly want to keep this on your radar and watch list and make sure you watch till the
end so you understand what this stock has got in the tank that could drive it to the moon.
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So let’s talk about Element Nutritional Sciences (OTC: ELNSF)
which was very new to the market when we first covered it at 40cents per share but despite the
market sell off it has equally had some turbulent times and sitting at 25cents with a market cap
of $24m. I feel Element has started well on their public listing journey announcing some stellar
results which are only bound to push their share price up once the market stabilises in my view.
But what’s even more exciting is when you look at Element against its comparable peer group
which includes Usana Health Sciences (USNA) which has a market cap of $1.9bn
and Simply Good Foods (SMPL) with a market cap of $3.4bn all listed on the Nasdaq,
it gives you an indication of how far Element can go once their commercialisation activities
begin to convert. You can also see the level of outperformance relative to the peer group.
Also worth mentioning that the last financing, where management raised capital to fund growth,
happened at a price of USD$0.43, which means that today, the stock is trading at a discount.
Secondly, the founder of the company has personally invested $3.2M and owns 20% of
the shares himself indicating massive skin in the game which is what we like to see.
Element is an innovative and research driven Canadian nutraceutical company specializing
in the development of science-based products for the global consumer packaged goods market,
with a portfolio focused specifically on men and women over the age of 50. Element’s lead product,
Rejuvenate™, is a proprietary formulation that is clinically proven to assist in the
rebuilding, restoration and rejuvenation of natural loss of muscle mass due to aging
or other medical conditions. So in essence they deliver high-value nutrition products
that enhance the well-being of all consumers and allow them to maximize their health and longevity.
Their mission is to employ plant-based technology along with research based nutritional science to
deliver high value products to our customers allowing them to live life to the fullest.
Element Reported Q3 2021 Results announcing increased revenue to $2.1 million for the
year-to-date Q3 2021, an increase of 212%, with a gross margin of $0.2 million. They
recently added distribution partners including Sam’s Club, Longo’s and Fortinos and their
Innovation pipeline now includes JAKTRX™ PROMINO, JAKTRX™ Pro Recovery, Rejuvenate™
Immune Health and Rejuvenate™ Omega Health, targeting high potential nutrition markets.
Stuart Lowther, their CEO commented that “they are maintaining a high growth trajectory
with revenue increasing 249% in Q3 2021 and 212% for the year-to-date period.
During the quarter, they added large and prominent retailer partners to their growing distribution
network and increased their sales velocity through both traditional retail and e-commerce channels.
Focusing further on their innovation pipeline, they announced two new products under their
flagship brand - Rejuvenate™ Immune Health and Rejuvenate™ Omega Health - targeted towards two
high potential nutrition markets. With their distribution securely in place, sales volumes
on an upward trend and many strategic initiatives ahead, they look forward to continuing to
drive growth by delivering innovative and high value products to their customers.”
Element also Provided a Review of 2021 and Business Outlook for 2022.
Their CEO Stuart Lowther, stated that “Amongst the most notable highlights for 2021
was receiving purchase orders for over 8,000 Walgreens locations across the United States,
and placing Rejuvenate™ in both the first and second largest pharmacies in the United States.
This success in business development has also been translating to significant revenue growth
with the Company reporting 212% revenue growth for the year-to-date ended September 30, 2021.
But what many people have not seen behind the scenes is that they have managed their growth
extremely well as with news of supply shortages around the world impacting most sectors,
their team acted proactively to secure their raw materials
and production capacity in order to ensure all customer orders were being met on a timely basis.
Throughout the year, they also made additions to their team with experienced executives in the
nutraceuticals sector to ensure they remain well prepared to execute on their growth objectives.
He added that, “Looking forward, they are tremendously excited about their prospects.
First, they expect to see increasing velocity with their existing retail and online distribution
partners driving growth. Secondly, new product innovations will also be hitting the market in
the first quarter of 2022, under both our flagship Rejuvenate™ brand and under their
sports nutrition brand, JAKTRX™. Their clinically proven intellectual property, using plant-based
amino acids to assist in reducing muscle loss due to aging or due to medical recovery, has
many potential applications and this is just the beginning of their product innovation pipeline.
Thirdly, in 2022 they expect to add additional distribution partners in traditional and
online channels to continue bringing their brand to new consumers around the world.”
Some of their 2021 Milestones include:
Delivered Rejuvenate™ ready to drink organic plant protein beverage to 8,468 Walgreens locations
in 50 states across the United States Received an initial purchase order
for Sam’s Club online platform and began shipment to all 589 Sam’s Club retail locations
Entered into a brokerage agreement with Advantage Solutions,
a consumer-packaged goods broker with over US$4 billion in revenue across 40 countries,
to distribute Rejuvenate™ to retailers in North America and internationally
Engaged Canopy Management, which manages over US$1 billion of revenue on behalf of clients,
to maximize awareness and sales across the Amazon platform
And lots more which sets them up really nicely for a bright outlook for 2022
Element also announced that they had received confirmation from The Depository Trust
Company ("DTC") that its common shares ("Common Shares") are now eligible for
electronic clearing and settlement through DTC in the United States. DTC eligibility
is a milestone towards the trading of the Company’s Common Shares on the OTCQX® Best
Market ("OTCQX") which is a major milestone towards a possible uplisting to a major exchange.
We know that the North American nutritional market is worth $50bn
and growing and due to greater emphasis on healthier living,
63% of consumers are looking for plant based foods as a healthier source of protein and
the U.S. ready-to-drink market expected to expand at a CAGR of 8.2% to 2025 with the adult protein
beverage market estimated at over US$1.6 Billion so a strong addressable market opportunity..
Even more important is the targeted health benefits as this can help with Sarcopenia which
is a syndrome characterized by progressive loss of skeletal muscle mass and strength, correlated
with physical disability, poor quality of life and death. And the risk factors for sarcopenia include
age, gender and level of physical activity. Muscle accounts for 60% of the body’s protein stores, and
sarcopenia can be debilitating since muscle-mass decrease is directly responsible for functional
impairment with loss of strength, increased likelihood of falls, and loss of autonomy.
Sarcopenia’s incidence rate is up to 13% of the population, and $18 billion in healthcare
costs can be attributed to it. As a result, the North American sarcopenia market is expected to
expand to $1.3 billion by the year 2025. Any product that can help alleviate the problem
could be responsible for vast cost savings while potentially preventing a life-altering condition
for many patients. And this is just where Elements flagship Rejuvenate product comes in.
Where not only is it 1st to market but it is clinically proven with efficacy backed by 25
peer reviewed clinical studies to improve muscle health, help prevent muscle loss,
deliver sustainable quality of life to consumers by preventing age related muscle loss. And with
over $20M in R&D and 18 years of development in the University of Arkansas already taken place,
the product is so GREATLY DE-RISKED. So some really exciting and tangible
value adding benefits to human health here.
They also have a brand ambassador Denise Austin, helping the company’s massive marketing push
as she is one of North America’s most influential people in health
and nutrition space. Being a best-selling author of 12 books on fitness and nutrition,
as well as a former member of the President’s Council on Physical Fitness.
So some very very interesting and mindblowing prospects ahead for these penny stocks
but only consider getting in if the price is right for you and if you fully understand the
risks. This video is not financial advice, a buy or a sell recommendation, but is meant to
bring some new and exciting penny stocks to your attention for you to do your own research.. As
always I would love to hear from you, so please let me know your thoughts on these top penny
stocks in the comments section below and what other penny stocks are catching your eyes lately.
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