Newsletter

Our New Surprise Pick:  That Marketing Solution, Inc.  (OTCQB:  TSTS)

We said we were going to put this piece out on Monday morning, but there are times when that isn’t appropriate. The stock is very depressed relative to its recent pick up in exposure, and it’s not impossible that we could see some premarket transactions come across the board if we get an unexpected press release hitting the wires. Hence, we wanted to get this report to you today so you have plenty of time to develop an approach you’re comfortable with.

Why is this potentially such a great opportunity? It starts with this idea: Market volatility produces opportunity by macro-discounting micro values.

In other words, just because China is struggling doesn’t mean a stock like TSTS isn’t undergoing massive growth in their sales footprint.  And yet, this stock just got knocked back down to key support (before seeing a monstrous surge in accumulation buying) nonetheless.

By being patient and selective, and waiting for situations like this, we have actually managed to put up +135% in total available gains on just 8 picks since mid-August, when volatility blasted off and the market crashed.

Our last pick (this past Thursday) was another fine example, popping 25% higher on a multi-month volume record.

I’m not boasting for the sake of boasting. As always, I’m just trying to make you some money by showing you one simple and powerful idea in action: It isn’t wise to stop playing just because the music starts to get loud.

My hope is, by showing you that we have been consistently finding strong ideas, you will be more likely to stay the course and participate as those ideas emerge.

Our newest pick is a great example of that concept.

TSTS is not really a “Marketing Solution” company, despite the name. No, sir. It’s much more exciting: This is a biotechnology play with real intellectual property in its asset portfolio.

The company develops, owns and operates Technology around the Micellization Manufacturing Process (a proprietary process called “Aqua V manufacturing”) – which converts oil-based nutrients into water soluble products for better absorption by the cells.Essentially, TSTS technology adapts nutrients for almost immediate uptake with almost no bio-waste.

We also like the fact that this is not a company trying to make hay in an obscure backwater segment. TSTS is firmly in the supplement and wellness space, which recent research shows is undergoing massive growth due to the natural migration of demographic factors associated with the baby boomer aging process. Estimates now put the space at $18B in total sales, with enormous growth momentum picking up speed over the past half-decade.

However, this is not just an IP-rich biotech in a hot space. There are real catalysts in play right now that suggest to us a real case for near-term expansion in sales footprint along two fronts: both domestic and foreign, including the kosher market.

Attesting to that, TSTS recently announced the company’s first international order, which will kick-start the next phase of operations for TSTS as they begin to show hard topline growth (See Full Press Release Here).

The company also had occasion to announce that they have received Kosher certification for three products, opening up a new market of over 12m possible US customers. These three products are all manufactured using the TSTS proprietary Aqua V Micellization technology (See Full Press Release Here).

But, as we constantly preach, it isn’t enough to simply rely on fundamentals. The technicals have to be in place as well. In this case, that’s hardly a problem: The TSTS chart is a thing of beauty right now. Support has held for some time and we are starting to see the first key vestiges of an incipient rally in the making.

In fact, the pattern of behavior is extremely similar to what we witnessed with this stock in late July, right before a 5-day 100% rally.

The next step in the process for TSTS would be the tell-tale break above the $0.15 area, which should trigger a round of aggressive buying as the stock breaks above its band of lateral moving averages.

In terms of mechanics, we see a float of fewer than 28m shares and average volume on the rise. That’s a powerful recipe given the way everything seems to line up for this stock right now.

About TSTS

TSTS (That Marketing Solution, Inc.), a development stage company, focuses on the production of products in the nutritional supplements industry.

TSTS owns and operates technology around the Micellization Manufacturing Process. This Proprietary Micellization Process converts oil-based nutrients into water soluble products for better absorption by the cells.

TSTS was founded in 2012 and is based in Salt Lake City, Utah.

Top Investor Highlights

• ·       TSTS has a small trading float of just 27.45M, which suggests the stock could launch higher on any additional influx of interest.

• ·       TSTS is starting to see new order flow for its products both domestic and foreign, including the kosher market. This represents what is known as “Footprint expansion” and critically tends to lead to major topline growth.

• ·       TSTS is coming off an RSI trough under 40, pointing to a massively oversold stock now heading back the other way.

• ·       TSTS just recorded a MACD Bullish reversal, suggesting a technical change in trend.

Valuation Gets A Boost After Growth In Supplement & Wellness Stocks -- Accesswire (Mon, Jul 27) 

The Vitamin and Supplement Manufacturing industry growth has seen incredible expansion over the last half decade.

Increased demands from a larger mainstream, health-conscious customer base and the growth of the aging baby boomer population have been two main contributors to the rise of this market.

IBIS World estimates that in the years ahead, the industry will benefit from the same trends that have supported its growth in the past. These include rising health spending as well as growing interest in wellness and nutrition among mainstream consumers.

Reports from the research firm show that the market is growing at an annual rate of 7% and is currently worth $18 billion.”

In Summary

TSTS is a stock with a growing sales footprint and major, glaring signs of accumulation at key support after being knocked down to deep discount levels for macro-logical reasons that have nothing to do with this company’s future prospects. That’s a recipe for tremendous potential upside.

Company Website:  http://www.thatmarketingsolution.com

Quote:  http://finance.yahoo.com/q?s=TSTS

AllStarStockPicks Editor