Good Morning!
Coastal Integrated Services Inc. (COLV) has basically built that mythical “better mousetrap” and now the market is beating a path to its door.
Load that COLV chart and watch the age-old story play out:
See anything you like? That’s possibly the easiest 40% ramp I’ve seen in ages, the kind of trend traders ride to glory all the time!
Where COLV gets interesting is that before October 24, there really wasn’t much to talk about. It zigged and it zagged sometimes but who could tell?
Total volume for the entire TWO MONTHS leading up to that chart up there rang in at under 13,000 shares. Then suddenly, COLV went ballistic!
Turnover here is up 160-fold since that “little” red bar on the left, so COLV is 10 times as liquid in a typical day as it used to be in a whole quarter.
And all that volume translated into price action, just like the books say! COLV is trending up 40% now and the signals are flashing “rally!”
It’s the kind of situation you’re probably already itching to trade on its own, a pure technical play! But maybe you should hear what COLV actually does!
You know that “better mousetrap” I mentioned up top? Redesigned coffee lids that don’t spill but give you a bigger gulp than the existing model.
COLV only bought the company that invented the new lid back in September. They’re already winning coffee industry prizes! (Read more)
“New lid” concepts from other companies fizzled for being too fancy, but the bottom line is clear: there’s a LOT of money in coffee lids! (Read more)
Maybe people use 100 BILLION of these little plastic tops every year. Starbucks alone sells 4 BILLION cups a year and you can bet most have lids.
That coffee is hot! It sloshes! Who wants to carry an open cup of scalding hot death around in the morning when people are tired? (Twitter)
Now maybe COLV converts 1% of the world’s coffee lids and maybe it charges 1 penny per lid for the right to use its proprietary system.
Even those lowball numbers still add up to 8 figures a year, which is stunning for a start-up with ZERO revenue on the books so far!
But maybe someone embarrassed by their lids will realize it’s easier to just buy COLV outright instead of paying them for their new design!
Starbucks has well over $1 BILLION in cash and a vested interest in improving its environmental profile -- it needs new lids.
COLV lids are made of 30% renewable material, and obviously a coffee company that takes them over can DENY them to other vendors.
It’s something to keep in mind if the $0.01 for 1% of the market equations don’t tickle your fancy. But that’s long-term stuff anyhow!
Here and now, the COLV chart is grooving, with no sign of stopping -- if anything, the indicators show that the action is ready to heat up fast!
See you soon,
StockHideout
