Greetings Trader!
We met ACOL a few months ago when it was riding an enormous revenue wave
its medical-grade plastic containers were flying off the shelves.
Now it’s primed to leap back onto trade screens all over the market. When that
happens, I want you to have ACOL on your radar first.
Demand for ACOL’s MedTainer™ got so intense that management had to warn us
that they were essentially looking at product shortages.
Sure enough, the news flow quieted down after that while ACOL went behind
the scenes to beef up its supply chain.
With the ACOL chart already poised to break out of its consolidation channel,
the timing is perfect. Check it out:
ACOL came down to 0.009 after hitting a recent peak of 0.026.
Draw the top and bottom trends, the action has narrowed to a
razor-thin edge.
That’s a classic screw-coiling pattern. All that energy the MACD has been feeding
into ACOL over the last month is still in play . . . all it needs is for the market to
pull the trigger.
And while the trigger looks so tight it might fire on its own, headline flow on
ACOL has actually been a little quiet lately. I circled the only news.
Those beats didn’t have the technical traction to turn the trend . . . but that
creates opportunity for us now that the indicators are ready to fire.
Besides, those little plastic boxes have turned a cash machine for ACOL.
Sales were already up 30pct over last year and keep breaking records.
ACOL adds the boxes to inventory at a cash cost around 0.50 (see them all HERE)
and sells them for maybe 9 times that price.
Gross margin on every sale is a cozy 67pct back to fund ACOL operations, so
they’re not praying for pie-in-the-sky scale here, either. (Read more)
ACOL has these little boxes in pharma locations and apparently dozens of
stores. They’re talking to drug industry supply companies now.
I think the retail customers might include a slight Medical MJ component, but
that might just be part of the “clean, green and herbal” marketing message.
Whatever they’re doing, it’s working. ACOL had 90,000 units in inventory on
September 30. By December 4 they were worried about keeping up with demand.
Traders get a chance to catch a retail craze in the earliest stages while ACOL
is below 0.01 now, who knows how long that lasts?
Start your research right away, but I think you can see the logic on this trade.
A chart ready to catch fire, a product flying off the shelves.
Sincerely,
StockHideout
