| We're in a really weird market. The economy shows signs of fatigue… and all this drama around the debt ceiling. Meanwhile, tech stocks are raging, with the Nasdaq up now more than 30% on the year. The bottom line…fundamentals don't matter much. You know what else? The best pumps in the market are like zombies… Hard to Kill. That's why having a list of former runners always makes sense. If they've pumped once…they'll likely pump again. And they're likely to pump when their shares are trading near the lows like Smart for Life Inc (NASDAQ: SMFL). About a year ago SMFL was trading as high as $38. And today you can find shares for under $1.50. Here's what they're all about… Smart For Life Inc. (NASDAQ: SMFL) - 1-month trading range: $1.25- $7.59
- Typical average daily volume: 1.2 million
- Float: ~ 640K
Smart For Life's Business Smart for Life, Inc. is a company that makes and sells healthy food and supplements. The company's supplement line includes protein bars, healthy snack cookies, vitamin gummies, and protein shakes. 
Source: Smart for Life Smart for Life branded products can be found online at places like Wal-Mart and Amazon.com. Its subsidiaries include Ceatamed Worldwide, GSP Nutrition, Doctors Scientific Organica (DSO) 
Source: Smart for Life In addition, the company also offers a subscription service through its website. Customers receive a discount on their subscription deals. In April, Smart for Life announced it was targeting an acquisition of a company generating revenues in excess of $10 million and over $2 million EBITDA for the trailing twelve months. The acquisition is part of its buy-and-build strategy designed to establish Smart for Life as a global player in the health and wellness sector. On My 23rd, Smart for Life signed a 6-month contract to produce, film, and broadcast tailored interviews and commercials about Smart for Life, Inc.'s business operations. Right before the month of May concluded, Smart for Life announced the agreement to exercise outstanding warrants to purchase up to an aggregate of 3.5 million shares of company stock—at an exercise price of $2.59 and $1.30. The exercise of the warrants is expected to be approximately $4.5 million before deducting placement agent fees and estimated offering expenses. The company hailed it as a transformative event, which included converting approximately $6 million of debt into equity and converting $1.2 million of accrued compensation by management and the board of directors. Financials 
Source: Stockanalysis.com Like most companies we profile here… there are some good and bad. First, the good. SMFL is growing its revenues year-over-year. In 2019 it generated $2.36 million in revenues. Over the last twelve months, it has generated $15.7 million in revenues. In fact, the company's Q3 2022 revenues increased by 59.1% to $5.4 million, and revenues for the first 9 months of 2022 increased by 194.0% to $14.1 million. However, it is still losing money. And expenses are growing faster than its revenues. That means the company must rely heavily on promoters and stock offerings until it can generate significant revenues. And it did just that a few days ago when it announced the closing of a $1.58 million direct offering at $2.71 per share. Promoter Activity I received two emails from the same promoter regarding SMFL. But I know this was being pumped heavily in a few obscure discord rooms before the direct offering was announced. Here are some of the catalysts the promoter pointed out in their awareness campaign: - Impressive revenue growth posted in Q3 2022
- A reverse stock split, less than one million shares floating now
- High-Growth Market
- A loyal customer base and strong brand name
- Exciting E-commerce initiative
- Vertical integration
- Agreement with CloudKitchens for rapid delivery of its high-protein ice cream across major US Markets
The promoter does a good job of explaining what's important to traders. First, they make it clear that is an ultra-low float stock. That's obviously very appealing because if the stock does pump, it will likely attract some short sellers. But with such a limited supply of shares, it makes it likelier to have a short squeeze. The promoter was compensated $15,000 to a one-day profile on SMFL. Straight to the Facts SMFL has gone from $1.72 to a high of $7.59 in the month of May. It has since fallen back to earth. But the ticker remains fresh in trader's minds. Keep an eye on the volume. Former runners tend to be future runners. The hottest themes in the market right now are biotech and AI. If SMFL can get a PR related to one of those, it can run again. The company just raised some capital, and shares have declined heavily since then. Something tells me that this will have another run again in the future. Always at your service, Baron Von Stocks | 
Post a Comment
Post a Comment