I listened to Donald Trump’s full speech at the World Economic Forum in Davos, Switzerland.
For 30 minutes he described the economic miracles, as he put it, of his administration, the American resurgence, the resumption of the enterprise system, and the market’s incredible returns.
He also talked about the wonder of negative interest rates and his genuine wishes to see the Federal Reserve slashing rates to ZERO soon.
Trump isn’t the only one that thinks the central bank is going to resort to these measures; billionaire investors and fund managers don’t see another way to combat the next slowdown without implementing ZIRP.
At this point, it is clear to all that the Federal Reserve CAN’T undo what its tangled up in: an endless and ever-growing BUBBLE.
Underneath this backdrop of financial lunacy, in the real economy, we KNOW that BABY BOOMERS continue to control 60% of the wealth that American households possess and that WELLNESS is a MAJOR trend with significant upside.
As you can see, almost NOTHING is cheap in the general markets at the moment.
After 10 years of rising profits, especially in recent months with the middle-class comeback getting stronger, there’s GREED and RISK-TAKING on a grand scale; there are hardly any companies that trade at a DISCOUNT, compared with their 52-week highs.
Despite a record-breaking stock market, historically EXPENSIVE valuations, and generationally unattractive multiples for stocks, we’ve publishing an alert on a company that we’ve been tracking since May of 2018, that we feel is UNIQUELY cheap.
- Its share price is 85.8% BELOW its all-time high from September of 2018 and 83% BELOW its recent high that was set just one year ago.
- Between late January 2019 and late January 2020, the company has launched a new line of products that is GAINING TORQUE and experiencing growing sales.
- The company’s market cap is ONLY $10M. It’s a true small-cap business with negligible debt and $1.7M in cash.
- Its 9 products are SOLD in approximately 2,400 GNC locations and 1,100 Walmart branches!
As you can see, in the two PREVIOUS times the stock got to the price levels it is trading for today, it ENJOYED some pretty big moves, one of 525% and a second of 325%.
Compared to one year ago, the company’s revenues are up DRAMATICALLY and both Walmart and GNC, among its other distributors, continue to make purchase orders, going forward.
This is potential for a REBOUND opportunity. The last two times the stock bounced quickly, shares bottomed at CAD$0.28 and CAD$0.20.
This time shares are trading for a mere CAD$0.15.
Koios Beverages (CSE: KBEV & US: KBEVF) NOW!
It seems that Trump is going to get his way.
Global economic activity is slowing down, with the IMF downgrading its growth forecast for yet another calendar year.
The FED is already out of control, but with data like I’m showing below, it will be FORCED to lower rates, just as Trump has been IMPLORING them to do for months:
Prices and fundamentals aren’t moving in tandem anymore.
One company that has doubled in price since October 2015 and is prospering is Walmart. Walmart sells 75 MILLION products. It has 100,000 suppliers. On a weekly basis, 275 million customers enter its stores. Their revenue was $514B in 2019, more than any other company on the planet. 1.5 million people are employed by the company in the U.S. alone and 90% of the population lives within 10 miles of a store. Walmart is the BIGGEST and most important retailer in America.
Their purchase department INITIATED contact with Koios Beverages (CSE: KBEV & US: KBEVF) in order to begin a working relationship. Koios’ products are now sold in an estimated 1,100 Walmart stores. Just a few weeks prior, GNC contacted Koios and requested to start selling their PROPRIETARY blend of nootropic beverages. Both of these MEGA-RETAILERS have been selling Koios drinks for close to a full year!
Koios is now in thousands of GNC stores across America!
Koios is projecting $4M in revenues in FY2020, yet the entire market cap is $10M. That’s a revenue/valuation ratio of 5:2, which is conservative, as we see it.
Last year, when Koios announced its relationship with Walmart, its common shares soared from CAD$0.28 to CAD$0.91 within days.
Here’s the deal, though: one year ago, Koios didn’t have its Fit SodaTM line of products in stores. Fit SodaTM consists of four uniquely flavored, 0-calorie drinks, with no artificial colors, flavors or preservatives and they are becoming a huge HIT with consumers.
The company’s customers are becoming more and more LOYAL, and our research shows that in the functional beverage industry, Koios is making strides and could become a dominator among certain demographics.
The trademark drinks hold proprietary formulations that CAN’T be replicated by new entrants and competitors.
If the company continues to attract ADDITIONAL LARGE retailers, such as Walmart and GNC, which are seeing the success of this line of products and desire to attract HIGH-END CONSUMERS to their stores, they will look into Koios Beverages (CSE: KBEV & US: KBEVF) to POTENTIALLY sign distribution agreements as well.
There are growth opportunities that management is working on, as well as potential new product offerings.
The company’s shares currently trade within CENTS of ALL-TIME LOWS!
At these levels, in our view, Koios (CSE: KBEV & US: KBEVF) is one of the BEST-VALUED businesses in the entire stock market.
Walmart, the world’s BEHEMOTH retailer, and GNC stores, the nation’s premier health product retailer, both CONTACTED management to make sure that Koios branded products would be on display and for sale on their shelves.
This is precisely what we want to see.
Koios Beverages (CSE: KBEV & US: KBEVF) Immediately!
A dozen cities in China are on LOCKDOWN, which means that 50 million human beings are QUARANTINED. It also means that factories are shut down, the demand for materials (especially oil and copper) is down HARD, and getting products in and out of mainland China is A HUGE HASSLE. Bottom line: China’s stock market is tanking, and foods and beverages, or anything sensitive to globalization, is under a MAGNIFYING GLASS.
Look at the plummeting price of oil. Notice that oil’s bottom came at the same time as GOLD’S bottom, which was December 2015.
This is why gold has crashed in recent days; they are highly CORRELATED.
Right now, China’s domestic needs for oil are falling hard, but they’ll recover just as fast later on.
Meanwhile though, commodities are a dangerous minefield.
As you can see below, investors are just looking for ways to PARK CASH, even in bonds that guarantee a nominal loss.
Negative-yielding debt has soared $3 trillion in the last two weeks, which means that the U.S. domestic economy continues to be the strongest, by far.
The problems are definitely surface-level and we can see that the drama in the OVERNIGHT repo market is not going away!
It’s oversubscribed again, injecting $94B in a single click of a button, and investors want MORE – they want lower rates.
Because of all these factors, the best strategy is to focus on opportunities that are: (1) not impacted negatively by the VIRUS; (2) haven’t rallied into sensational all-time highs; (3) aren’t negatively affected by commodities and their volatility;and (4) leverage the dominance of the behemoths, like Amazon and Walmart.
The coronavirus is just another reminder of the importance of health and nutrition. In fact, millennials are referred to as the most wellness-conscious generation in history.
In light of this, companies that STRAIGHT-UP dominate the food and beverage industry have actually designated entire units towards finding ways of either acquiring or developing new products, and they’re spending BILLIONS and BILLIONS on it.
The wars on cigarettes and, more recently, on vaping, are just the beginning. The government will probably go into caffeine, energy drink warnings, and there’s the long fight against opioids.
I am radically bullish on a company that is trading NEAR ALL-TIME LOWS with a market cap of USD$7.5M and projected revenues in 2021 of USD$7.5M – it’s that cheap right now!
Koios Beverages (CSE: KBEV & US: KBEVF) is my NUMBER-ONE priority right now!
I have followed this stock closely since it began trading. It traded this low in September 2018, and two weeks later shares were up 5-FOLD. In February 2019, it again traded near today’s price, and within a week it was up 4-FOLD.
In just a few years since inception, the company is already selling its line of products in about 1,100 Walmart locations and another 2,400 GNC stores, all on U.S. SOIL!
These are FUNCTIONAL beverages, which are the future. The soda series has ZERO calories and the functional beverages are full of formulated ingredients that target mental and physical excellence.
In terms of consumer picks, Koios Beverages (CSE: KBEV & US: KBEVF) is the one I’m GUNNING FOR MOST!
Consider becoming a shareholder of Koios Beverages (CSE: KBEV & US: KBEVF)!
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We are not brokers, investment or financial advisers, and you should not rely on the information herein as investment advice. If you are seeking personal investment advice, please contact a qualified and registered broker, investment adviser or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Please do your own research before investing, including reading the companies’ SEC filings, press releases, and risk disclosures. Information contained in this profile was provided by the company, extracted from SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it. You should know that we have been paid $250,000 by Koios Beverage Corp. (KBEVF) as consideration for a 30-day digital marketing campaign, which includes this communication. While we do not expect to buy or sell shares of KBEVF during this marketing campaign, we may do so once it ends. In the past, KBEVF has compensated us (and/or our affiliated companies Crush The StreetLLC and Gold Standard Media) a total of $250,000 (2019) and $342,000 (2018) for prior, now concluded, marketing campaigns. We also currently own warrants to acquire 990,566 shares of KBEVF with a conversion price of CAD$0.35, which we received from KBEVF in connection with our prior work.
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