Vegalab Inc (OTCMKTS: VEGL) is a company that has recently jumped onto the CNA Finance radar. With an astronomical climb that brought the value of the stock to new highs over the past month, it’s no surprise that this one is catching attention from investors. However, we’re at an interesting point here. Although the stock has risen to record highs over the past month, on Friday, it fell to $4.15 (Still up 84.44% since December 29th, 2017), a drop of $0.85 or 17% during the session. While some may see this as a cause for concern, many see it as a potentially incredible opportunity to get in on coming gains at a great discount. Today, we’ll talk about the most recent news released by VEGL, why I believe the value of the stock fell on Friday, and what we’ll be watching for ahead.
VEGL Announces Product Sales In California With Major Players
For those of you who are new to Vegalab, the company is emerging as a leader in the market for Earth-friendly agrochemicals. For more details on their products, click here. Nonetheless, on Thursday, the company climbed to record highs after it announced that it has began selling products in California with the help of two of the 25 largest agriculture retailers in the United States. These companies include Buttonwillow Warehouse Company and Mid Valley Agriculture Services. In a statement, David Selakovic, CEO at VEGL, had the following to offer:
With these well established and storied agriculture dealers on our team for the 2018 growing season, Vegalab is poised to show strong revenue growth in the California market as our marketing partners introduce more of our all-natural, biologically derived pesticides, fertilizers, and specialty agrochemical product lines to more of their existing customer base.
Why Did The Stock Fall On Friday?
At first glance, a decline of 17% is going to catch anyone’s eye. However, many savvy investors follow the lines of the greats like Warren Buffet who suggest that it’s best to buy when fear is high, and sell when greed is in the air. As a result of this general market mentality, we tend to see both positive and negative overreactions. At the end of the day, the buyers sent the stock skyrocketing, and when greed set in, profit taking started to take place. Ultimately, this is nothing more than general market movement. However, it does pose a potentially strong opportunity. After all, with the recent declines, the stock is trading at $4.15 per share, what many would call a pretty decent discount.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VEGL. In particular, we’re interested in following the company’s movements with regard to generating more high-value contracts with big players in the industry. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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