Date : July 29, 2020
We point your attention to an upstart micro-cap that currently doesn’t appear to be getting the credit it seems to deserve from the market for turning things around and pointing operations toward rapid and strong commercial operations after a couple wrong turns and cul-de-sacs in company strategic vision over the last couple years.
That’s not an easy feat and it seems right to acknowledge here – not simply because it seems like the right thing to do in talking about companies getting on the right track but because it could be a big opportunity if the current flow of events continues to show signs of moving down its present path.
Most importantly, GTEH is now getting it right and the stock hasn’t really moved in response. This might be a matter for relative debate if we didn’t see signs that the company is about to be, very suddenly, making millions in revenues from being pre-commercial just a few months ago. That makes the story more about a possible “overlooking event” on the part of the market, which holds the potential to result in a major opportunity for speculators.
The key for GTEH is the company’s recently acquired asset: the Sinfit nutritional products brand and its associated products, trade secrets, IP, inventory, and relationships.
The Sinfit acquisition by Gentech Holdings Inc (OTCMKTS:GTEH) represents, in short, the take-out of a top-5 functional food brand currently sold in over 2,500 GNC locations in North America and over 10,000 global physical and e-commerce stores across more than 10 countries around the world. GenTech acquired the brand last month and has reportedly already begun booking large orders internationally, online, and in the US domestic marketplace.
The real key, though, is the most recent release from GTEH management that the company has now officially qualified for “Mass Market Retail”, FDM and Military status at Europa Sports, one of the largest supplement distributors in the world.
According to the company’s most recent release, Europa Sports has been a leader in the nutrition and performance space for 30 years. This distributor brings a large US network to the table, with more than 14,000 active wholesale customers receiving products from six (6) major distribution centers, aggregating over a quarter million square feet of total warehouse space, producing a two-day fulfillment rate of 96% on new orders.
“Mass Market Retail status with Europa opens up an enormous new marketplace for SINFIT products,” commented David Lovatt, CEO of GenTech. “We have access to mass retailers and general goods outlets across the country – ie, Costco, BJ’s, Sam’s Club, and many more. As well as with Military Status achievement now, we will be able to sell directly into the Military based stores. This directly opens the door for us to gain access to millions and millions of new browsing end-market customers through Europa.”
The release also noted that company’s now completed contract with Europa provides access to its entire mass market footprint, which includes large retailers, general goods outlets, military exchange stores, gyms (Golds Gyms, Crunch Fitness, LA Fitness, Dicks Sporting Goods, Academy), FDM accounts (Harris Teeter, HEB, Akins & Chamberlin’s, United Super Market, Kroger, Costco), and grab-n-go food and beverage outlets along 36 major trucking routes across the US.
In other words, the company’s recent acquisition, which had pulled in over $2 million in sales last year, appears to be moving into a bigger market position under GTEH leadership. It is being mobilized.
The fundamental relationship between the price of the stock and the company’s prospects appears to be out of whack to us in a common sense manner right now, which suggests a potential opportunity. Obviously, nothing in life or markets is guaranteed, and individuals are very much encouraged to do their own due diligence here.
But the simple situation appears to be a company with rapidly rising commercial potential, particularly on the topline – GTEH wasn’t really even seeing commercial stage operations before moving in this direction. Yet shares haven’t really moved.
Micro-caps are notoriously subject to anonymity – people don’t know about them and don’t readily do research or notice important changes, either positive or negative. Hence, when things start to go very right, it is always quite possible that it is simply because a wider investment audience isn’t aware of the shift in fortunes.
That may be the case here. As such, GTEH appears to be worth a look as its Sinfit brand gains increasing traction.