Good Morning Traders!
New Trade Alert: NightFood Holdings Inc. (OTCMKTS: NGTF)
As we start to get past the Summer doldrums, we are looking forward to a strong second half of the year in a market that continues to offer up a ton of excellent opportunities in the small and micro-cap market segments.
Today’s newest alert is a perfect example: NGTF is a very small float stock (just over 4M shares) that recently uplisted off the pink sheets and onto the OTCQB. The Company continues to see week-over-week increases in Amazon sales and metrics and just announced that it is moving head-long into the gluten free market. Growth expectations are on the rise and the stock just put in a potential chart bottom based on a bullish inflection in the MACD.
Get ready because this one could be huge!
NightFood Holdings, Inc. (OTCMKTS: NGTF) manufactures, markets, and distributes snack products for evening consumption in the United States. It provides nutrition bars for supermarkets, grocery stores, and nutrition stores.
That positions this company squarely as an emerging leader in the healthy-ingredient snack market.
This is a strong market segment showing a lot of growth at present. In fact, a recent report on the snack food market from “Packaged Facts” showed that the last five years have seen steady growth for the healthy-ingredient snack market, with much stronger growth in the last two years due to double-digit growth in the meat snack and trail mix categories in 2014, and even stronger growth in snack bars in 2015.
The report estimates that market growth will rise slightly above 5% in 2016, with sales for the category, as defined by Packaged Facts, growing to $20.3B. “The following years will see a slow but steady increase in sales growth, culminating in healthy-ingredient snack sales of $25.4B in 2020, a CAGR between 2016 and 2020 of 5.7%,” the report said.
NGTF has developed a product just for a special niche: Food designed to satisfy that nighttime snack craving, but also to promote health and sound sleep.
Recent catalysts also make a strong case for this stock. For example, the company just started booking sales on Amazon. In a recent update, management noted that it continues to see week-over-week increases in Amazon sales and metrics. New customer acquisition cost has continued to decrease as ad campaigns and offers are optimized, and ad spend slowly ramps up.
“Campaigns like this become profitable as you decrease your customer acquisition costs, build your customer base, and repurchase behavior starts to kick in from satisfied snackers,” explained NightFood CEO Sean Folkson. “Our goal is not just to have a profitable campaign, but to be profitable at scale. I think we’re on our way.”
But perhaps the most exciting new development is the company’s announcement this week that gluten-free versions of NightFood products are currently being developed.
“We’ve been evaluating our manufacturing options for the future, and part of that is the evolution of our ingredient list and nutritional profiles as we expand our product lines and offerings,” explained Peter Leighton, CMO of NightFood. “Any changes or improvements that can be made are being considered, as long as they don’t run contrary to our core brand promise of nighttime appropriate and sleep-friendly snacking.”
The global gluten free food market size was about 350,000 tons in 2014, and a current report estimates that it will grow at a CAGR of more than 9%, to likely exceed 750 kilo tons by 2023. The market was valued at over $4B in 2014 and is likely to be worth more than $9B, growing at an estimated CAGR of over 10%.
It’s always big news when a high-growth company enters a new high-growth market segment.
That may be part of why we are seeing such clear technical indications of a potential bottoming pattern coming into play on the NGTF chart.
The MACD indicator is clearly turning to “Bull” mode in recent action, and on strong volume. And that movement is coming just after a key hold of technical support in the $0.13-0.15 area.
With a float of just 4.3M shares, the potential for a major spike higher is always present as the scramble for shares runs into a supply shortage and shorts get trapped in a panic to cover. That all implies a potential explosion to the upside if things line up just right for NGTF.
It bears watching closely tomorrow morning.
NGTF (NightFood Holdings, Inc.) is a company that, through its subsidiary, NightFood, manufactures, markets, and distributes snack products for evening consumption in the United States.
NGTF provides nutrition bars for supermarkets, grocery stores, and nutrition stores.
NGTF was founded in 2010 and is based in Tarrytown, New York.
What You Need To Know:
- NGTF has a small trading float of just 4.3M shares, which suggests the stock could launch higher on any additional influx of interest.
- NGTF recently uplisted onto the OTCQB, off the Pink Sheets.
- NGTF is positioning itself as an emerging leader in the “healthy-ingredient snack” market, which is heading for total sales over $25B.
- NGTF is coming off an RSI trough under 40, pointing to an oversold stock now potentially heading back the other way following a key test of support at the $0.20-0.25 level.
- NGTF just recorded a MACD Bullish reversal, suggesting a technical change in trend after holding key support on strong volume.
- NGTF just announced it is moving into the booming Gluten-free market as a serious global player.
For all of these reasons, we are now pounding the table on NGTF. Good luck and Enjoy the Ride!
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