Why NGTF May Be a Billion Dollar Company in a $20M Disguise

Date : February 11, 2020

New Opportunity: Nightfood Holdings Inc. (OTCMKTS:NGTF)

 

  • Disruptor in a fifty billion dollar food and beverage space with credible and unique solution to mainstream problem
  • Award-winning core product developed by prominent globally-recognized experts in nutrition and sleep science
  • Sequential q/q growth of 275% in revenues and 256% in cash reserves
  • Nightfood Ice Cream featured on Today Show, Oprah Magazine, the Wall Street Journal, CNN, USA Today, Washington Post, Food Network, Fox Business, People Magazine, and Fast Company
  • Has won multiple awards, including 2019 Product of the Year in the ice cream category in a Kantar survey of 40,000 consumers, as well as the World Dairy Innovation Award for Best New Ice Cream of 2019.
  • Similar brand recently acquired for over a billion dollars by Wells

 

There’s an undeniable problem – nighttime snacking – that haunts all humans for a set of very basic and essential reasons: unhealthy cravings intensify later in the day (proven scientific fact) when willpower is weakest, unhealthy foods do more damage at night because of our metabolic circadian rhythm, and foods high in fats and sugar (among other things) create poor sleeping experiences, which then interfere with our lives in pervasive ways.

Nightfood is a company on a mission to help solve this problem and, in the process, to capitalize on a massive market opportunity. And it just may be the next billion dollar brand in the making – the company is pursuing a playbook used by other ice cream start-ups that made it to the billion-dollar level.

The company’s big hit product – Nightfood Ice Cream – was developed by a prestigious team of globally recognized experts in sleep and nutrition:

  • Michael Breus, the most prominent sleep expert in the US, the resident sleep expert at WebMD for over 15 years and a regular guest on The Today Show, The Dr. Oz Show, The CBS Early Show, and other national media outlets,
  • Michael Grandner, top university director of sleep science as well as a leading professor of nutritional sciences and a board member at the Society of Behavioral Sleep Medicine,
  • Lauren Broch, sleep and nutrition expert currently on staff at the prestigious Northwell Health Sleep Disorders Center, and
  • Chef Chris Santos, a world famous chef, internationally known for appearances on the popular Food Network series “Chopped”, The Rachael Ray Show, The Today Show, The CBS Early Show, and more.
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Possibly, the closest analogy to Nightfood is “Halo Top Creamery”, a healthy, low-calorie ice cream brand that saw stunning growth 5 years ago, going from $230K in sales in 2013 to over $300 million just four years later before selling to ice cream giant Wells in 2019 at an estimate of over $1B. Talenti is another core example – recently bought out by Unilever, also for over a Billion Dollars. Right now, Nightfood is ahead of schedule for a similar fate, with more traction and more buzz at this stage than either Halo Top or Talenti.

The fact that the market is offering up NGTF shares right now on the cheap is something to celebrate.

Nightfood Ice Cream is blowing up: it has recently been featured on the Today Show, Oprah Magazine, the Wall Street Journal, CNN, USA Today, Washington Post, Food Network, Fox Business, People Magazine, and Fast Company.

The company now has an agreement with a firm that executes in-store promotions in Kroger, Albertsons, Stop & Shop, Giant, Food Lion, Safeway, Shaw’s, Jewel-Osco, Harris Teeter, Ralph’s, Fred Meyer, Lowes Foods, Publix, H.E.B., Wakefern, ShopRite, and Hy-Vee supermarket chains. It also has a sales director with blue-chip experience and has already moved onto the shelves of several major supermarket chains, including the largest autonomous division of industry giant Kroger.

In other words, the upside in terms of operational performance is rounding an inflection point right now and the big numbers are coming over the next few months. Growth is already starting to click: Sequential q/q growth of 275% in revenues demonstrate this traction.

This is one of the most interesting opportunities on the planet right now and it deserves a close look.

Symbol:  NGTF
Company:  Nightfood Holdings Inc.
Latest News: 
http://finance.yahoo.com/q/h?s=NGTF+Headlines
Company Website:
  http://www.nightfood.com

Who is NGTF

Nightfood Holdings Inc. (OTCMKTS:NGTF) is a disruptor targeting the $9.5 trillion global food and beverage market, and the $50 billion US nighttime snack market.

After manufacturing their first pint in early 2019, Nightfood secured ice cream distribution in multiple Top-10 supermarket chains in the United States, with concentrations in the Carolinas, Mid-Atlantic, the upper Midwest, and New England.

Management has also begun to focus on distribution of Nightfood sleep-friendly ice cream in hotels across the United States, and is currently available in certain locations of chains such as Fairfield Inn & Suites (Marriott), Hilton Garden Inn (Hilton), Staybridge Suites (InterContinental Hotels Group), and Residence Inn (Marriott).

On Feb 8, 2019, it was announced that Nightfood ice cream won the 2019 Product of the Year award in the ice cream category in a Kantar survey of over 40,000 consumers. On June 26, 2019, Nightfood was named Best New Ice Cream in the 2019 World Dairy Innovation Awards.

Over 80% of Americans snack regularly at night, resulting in an estimated 700M+ nighttime snack occasions weekly, and an annual spend on night snacks of over $50 billion dollars, the majority of it on options that are understood to be both unhealthy, and disruptive to sleep quality.

Scientific research indicates these unhealthy nighttime cravings are driven by human biology.  Willpower is also weakest at night, contributing to unhealthy night snacking behavior, and the majority of night snackers report feeling both guilty and out-of-control when it comes to their nighttime snacking.

Because unhealthy night snacking is biologically driven, and not a trend or a fad, management believes the category of nighttime-specific nutrition, which Nightfood is pioneering, will be a billion-dollar category.

Recent Catalysts

Expanding Marketing. Most recently, the company announced an agreement has been signed with News America Marketing for Nightfood’s first-ever in-store promotional activities in several Nightfood supermarket chains.

According to the release, “News America Marketing provides comprehensive in-store marketing media options in over 60,000 stores in the US and Canada.  They execute in-store promotions in many American supermarket chains including Ahold (Stop & Shop, Giant, Food Lion), Albertsons (Safeway, Shaw’s, Jewel-Osco), Kroger (Harris Teeter, Ralph’s, Fred Meyer), Lowes Foods, Publix, H.E.B., Wakefern (ShopRite), and Hy-Vee.”

Share Sale Lock-Up. In another very important release, the company recently announced that its Founder and CEO Sean Folkson extended his existing lock-up agreement for an additional twelve-month period into 2021. This is key because it means the largest shareholder and the person who knows more than anyone else about the company’s past, present, and future is very bullish.

“We received questions from a couple of shareholders about the lock-up, so I wanted to address those publicly,” commented Folkson. “This Company is my past, my present, and my future, and I’m not looking to sell or otherwise decrease my share position in any way. With our introduction into hotels, and various consumer marketing initiatives that will come to light very soon, I’m expecting a breakout in consumer awareness and product demand. We’re in discussions with global executives at three of the top four global hotel brands and are rolling into new supermarket chains here in Q1 which will be disclosed shortly.”

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Expanding Distribution. The company also recently announced that it has partnered with WeStock’s new “Radish” service to add Jessie Trinchard as Nightfood’s Sales Director.

According to the release, Radish is a shared Sales Director program introduced by TechStars alum company WeStock. The program provides growing brands a shared, industry leading sales director to oversee and coordinate national sales so they can reach $3M – $5M in revenues in a quick and affordable way, at which time they’d typically bring on a full-time sales director.

Nightfood also noted in the release that it has recently secured distribution in additional major supermarket chains which will be announced shortly, and Trinchard will work with these new accounts to help drive maximum awareness and sales velocity starting on day one.

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Technical Analysis

The NGTF chart is in breakout mode right now, which is one of the main reasons we bring this opportunity to your attention right now – ie, not only is the company apparently massively undervalued relative to its operational trajectory and market positioning, but the stock is starting to show signs of being poised for dramatic upside potential.

After breaking its former downtrend line in a technical basing formation, NGTF shares (and there are only about 35 million of them rattling around on the float) just broke above a range resistance barrier. That breakout following a three-point bullish divergence in MACD and RSI, meaning that momentum has been turning higher under the surface for some time.

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About NGTF

NGTF

NGTF (Nightfood Holdings Inc.) is a unique nutritional product manufacturer with powerful emerging traction in the $9.7 billion global ice cream market. The company’s products have been widely featured in the media and its Nightfood Ice Cream is seeing powerful expansion in both marketing and distribution.

Over 80% of Americans snack regularly at night, resulting in an estimated 700M+ nighttime snack occasions weekly, and an annual spend on night snacks of over $50 billion dollars, the majority of it on options that are understood to be both unhealthy, and disruptive to sleep quality.

Scientific research indicates these unhealthy nighttime cravings are driven by human biology.  Willpower is also weakest at night, contributing to unhealthy night snacking behavior, and the majority of night snackers report feeling both guilty and out-of-control when it comes to their nighttime snacking.

Because unhealthy night snacking is biologically driven, and not a trend or a fad, management believes the category of nighttime-specific nutrition, which Nightfood is pioneering, will be a billion-dollar category.

Key Points:

  • NGTF has secured ice cream distribution in multiple Top-10 supermarket chains in the United States
  • NGTF has a small trading float of just 35M, which suggests the stock could launch higher on any additional influx of interest.
  • NGTF is making real money, with trailing revs already coming in at $456K.
  • NGTF quarterly revenues almost match full 12-month revenues for Halo Top just three years before they topped $100M in revenue
  • NGTF is starting to see major topline growth, with quarterly y/y revs increasing at 102%, and q/q revs growing at 275%.
  • NGTF’s biggest shareholder has agreed to a long-term share lock-up agreement, keeping the stock free of heavy supply on future rallies.
  • NGTF is coming off three-point bullish divergences in both MACD and RSI indicators after breaking its prior downtrend line.
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Conclusion

The chart agrees with the fundamentals right now in NGTF: the company appears to be a potential billion dollar brand still selling equity under the guise of a $20 million holdings company. That may present an enormous opportunity for current and prospective investors in ahead of the crowd on future growth revelations.

Nightfood has already achieved brand attention and an expanding distribution footprint. As the scope and reach of sales increases, one might expect the cost per unit to dive and the market to suddenly find itself trying to price a rapidly growing profitable company being approached by bigger brands in search of an acquisition target.

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