Look around your desk right now or better yet if you're home, most of us are probably getting a little hungry right now. What do you reach for? A bag of chips...maybe some pretzels? For the most part it's been ingrained into our heads at least for the better part of this decade that "bad food" is bad and we need to "snack healthy".
Did you ever think about how big this industry is? And we aren't talking just the "snack industry" but the specific segment dealing directly with Healthy Snacks and functional foods (the kinds of food that may provide benefits beyond basic nutrition). This niche in and of itself weighs in the multi-billions of dollars in annual revenue each year and what may be even better yet is that many think it's still "in its infancy".
So what does this really mean when we talk about "infancy"? Early stage, ground floor, etc come to mind and if you thought about that or had a chance to see a company like Nestle or Hershey's during its infancy, most would probably agree that there was big potential there for anyone looking at those companies during the "early stage". And it's this idea that has us thinking a little deeper about Thursday's feature, PureSnax International (PSNX).
According to analysis from IBISWorld the snack industry as a whole is worth nearly $40BILLION! And the interesting an more exciting part of this is that the healthy snack segment is starting to be seen a the driver to further the growth during the coming years!
"...As consumers demand more healthy versions of existing snacks, operators are expected to introduce a wider variety of products. "
The shift towards foods perceived to be healthier is changing America’s food industry, and this is particularly the case in snacks. For a number of years, consumers have been more aware of the types of food they eat amid a nationwide obesity and type 2 diabetes crisis.
Busier lifestyles and a more diverse population is also driving the rise in snacking, highlighting the growing importance of convenience. Driven by millennials, consumers are eating on the go more often than in the past, sometimes using snacks to replace meals! According to one of the biggest food companies in the world, Tyson Foods, the average consumer eats five times a day. A shift to city dwelling means smaller kitchens for some and less cooking.
For PSNX, this could be optimal timing! Why? PSNX is a functional food and healthy snacks company that holds several key product lines and has just recently announced some serious distribution in North America!
PureSnax International Fulfills Initial Purchase Orders
PSNX most recently announced that it has completed the delivery of an initial product shipment to fulfill the first purchase orders received under its previously announced advertising and distribution agreement with the largest distributor of vitamins, supplements, personal care items and sports nutrition in North America.
According to the company, this affectively could put PSNX products into thousands of outlets. Specifically, PSNX states that the distributor offers select PureSnax products for sale to its network of over 7,000 retailers across North America.
With the tough new nutritional standards being rolled out through schools in the United States, PSNX looks to capitalize on these regulations by offering "good for you", functional foods and snacks that meet these new regulatory standards. PSNX currently has product placement in venues such as Toronto’s SickKids hospital, catering to children with strict dietary restrictions, which can be replicated in similar venues throughout North America.
According to the company, these are markets where traditional large snack and food companies have difficulty in quickly penetrating due to scalability restrictions. Therefore, this could allow PSNX to capture and establish lasting market share and grow. Product categories include Popcorn, candied popcorn, marshmallow squares (made without Gelatin), hemp and hemp related products, protein bars, mints, gum and various condiments as well as offering Wow it’s Not Sugar! Xylitol, an all-natural sweetener.
Click to view the full PSNX Product Line
PSNX is an alert that is brand new to our network but is no stranger to big moves and even bigger trading momentum. If you look at the chart above you'll notice that PSNX has seen a declining resistance line with an increasing (inclining) level of support over more recent trading days. A surge of positive trading today could be the last piece of the puzzle when identifying potential for a bullish reversal.
In fact when we're talking "text book" here, just read what financial info site, StockCharts, has to say about pin pointing a pattern like this:
"The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge."
It looks like PSNX’s pattern may be converging to a point and the next leg may be the bullish reversal that can quickly follow a pattern like this.
A look back at the history of this PSNX chart shows that it can hit much higher levels. About 20 trading days ago PSNX ended up hitting highs of $0.73! After a few weeks of PSNX pulling back, the recent turn around that it's beginning to see this week could be an early sign for a turn-around in our opinion. Also, considering the above average action that PSNX saw today, this may be just the start of a serious reversal trend heading into Thursday morning (7-14)!
PSNX has just started to see positive activity build in the market all while the company could be on the verge of a monster distribution deal not just in a specific state or country but THROUGHOUT NORTH AMERICA! Through its most recent agreement the PSNX product portfolio could soon hit thousands of shelves and management has already stated that "PSNX is now in a position to continue fulfilling outstanding orders for all their customers."
PSNX is currently trading at $0.27 per share & just started to see its first "REAL" positive momentum day on Wednesday (7-13). How long do you think a company making strides like this in an industry that is worth billions and shows no signs of slowing down, will stay at $0.27 per share? Pull up PSNX tonight; See you tomorrow morning!
Start Getting Ready TONIGHT!
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