At this time of the year, the joy found in giving can be a satisfying practice. But, what can be even more rewarding, at least in the financial world, is to find a gift that keeps on giving. And, Youngevity International (NasdaqCM: YGYI) may be just the stock that is positioned to deliver substantial gains well into the next year.
Indeed, just pitching a company name without a supporting thesis is amateurish, and YGYI stands above those highly speculative opportunities by offering a list of reasons to consider adding the stock to your holiday gift list. For the past several quarters, YGYI has built a substantive portfolio of revenue producing assets. But, the opportunistic part for investors to notice is that the while the company is busy developing, fortifying and delivering to market its revenue-generating set of products, retail and institutional investors alike are giving less investment attention than they ought to be to this emerging multi-dimensional consumer products company. And for that reason alone, YGYI presents itself as an attractive opportunity for investors looking for both near and long-term stock price appreciation. However, other supporting grounds justify considering ownership into this company.
Youngevity’s CLR Roasters® Brews Growth
Emerging as a multi-faceted seller of unique products and services, YGYI currently markets a wide range of consumer goods and interests, primarily facilitated through person-to-person selling relationships that comprise what the company refers to as a “network of networks.” And, it’s those “networks” that enable the consistent and sustainable growth of the business, utilizing a vertically-integrated approach to selling and marketing to commercial, retail, and direct sales channels.
During just the past year, YGYI has taken one of its primary products, coffee, and demonstrated the power within the strategy of developing diversified channels to exploit revenue and market generating opportunity. CLR Roasters®, the company’s growing coffee business, is a wholly-owned subsidiary of Youngevity International and is a mid-sized roaster that produces and distributes gourmet coffees from its 50,000 square foot facility in Nicaragua. The company sells product through its private label boutique brands like Cafe’ La Rica®, Josie’s Java House®, and Javalution® and also provides manufacturing and packaging services for a variety of private label coffee brands throughout various tiers of the distribution channel. Currently, CLR Roasters® is one of the largest coffee suppliers to the cruise line industry in North America and provides private label blends to many cruise lines in South Florida.
The CLR Roasters® company planted its roots in 2014 when the company acquired a coffee plantation and a processing facility in Nicaragua with the intention of overseeing complete control of the coffee production processes from harvest to cup. The acquisition allowed YGYI to maintain their ability to ensure consistent supply and high-quality standards that the CLR Roasters® brands have come to exemplify. Beyond just the quality derived from using only 100% shade-grown Arabica coffee beans and managing control of production processes, CLR Roasters® products hold the distinction of being both Rainforest Alliance Certified and Fair Trade Certified.
High Praise For CLR Roasters®
Since 2014, CLR Roasters® has earned a significant amount of industry recognition and is awarded certifications for being USDA Organic, Fair Trade Certified, and received the Cafe’ De Columbia stamp of approval that recognizes the high standards and commitment to manufacturing and fulfillment processes for its blends. The praise and quality are noticeable, exemplified by product placements in major hotel chains, convenience stores, retail and grocery channels, direct store delivery, and significant wholesalers that demonstrate the range of the diversification strategy. The company is also active in targeting niche markets with their unique line of coffees with health benefits under the JavaFit® brand, marketed exclusively through Youngevity International distribution channels. By the way, it’s worth noting that JavaFit® is the only first entrant by YGYI in the highly unique niche market of fortified coffee, with additional blends and intensified marketing focus expected to drive targeted sales in this specialized segment.
The growth of CLR Roasters® is apparent in the numbers reported by YGYI in November of 2017. Sales from the coffee division alone ramped up by more than 29% from the previous quarter, led by strong growth from its Green Coffee distribution and the growth of its Cafe’ La Rica® label. As part of a record-breaking Q3 of 2017 which delivered total revenues of over $44 million, the coffee segment provided a standout quarter by bringing in more than $6.4 million in commercial coffee sales that represented an almost 30% increase over the same period in 2016. YGYI proudly announced in September a 419% increase in August unit sales of the Cafe’ La Rica® brand, primarily driven by ad specials for the label.
For investors narrowly focused on YGYI’s growing coffee business, market indicators point toward a continued revenue trend higher with signals that support continued growth into diversified markets. However, coffee is only a single highlight of this growing business that markets a broad portfolio of products.
Targeting The Essential Life Sciences Market Segment
Beyond the CLR Roasters® brand, YGYI is busy building its presence as a leading marketer of nutritional and healthy lifestyle solutions intended to help people around the globe to “live younger, longer.” YGYI is pursuing an active role in addressing the growing lack of consumer confidence in universal healthcare systems and is developing ways to create and deliver to market effective alternatives to traditional healthcare. To do this, YGYI offers a wide range and selection of products that provide high quality, cutting-edge solutions to fill evolving consumer needs. The specialized focus by YGYI management is leading to the development of a broad-based platform of products designed to meet rigorous quality and nutritional standards demanded by a growing segment of the consumer population. Like CLR Roasters®, YGYI is keeping the processes in-house, formulating its line of goods using only the highest quality ingredients produced in state-of-the-art laboratories according to their own internal set of high-quality standards and adherence to good manufacturing practice (GMP).
Proving their capability to design and deliver, Youngevity International is bringing to market innovative brands including Adaptogenix®, Biometics®, Botanical Spa®, and Escape International® to name just a few. Beyond the brands mentioned, YGYI markets an additional twelve proprietary labels of products that target the health and wellness market.
Thus, far beyond just being a leader in the coffee segment, YGYI is dedicated to improving lifestyles through vibrant health and flourishing economics, with the stated goal to provide health-conscious consumers with nutritional and lifestyle solutions. In meeting the task, YGYI offers more than 1,000 high quality, technologically advanced products that target specialized markets that include dietary supplements, sports and energy drinks, lifestyle products, skincare and cosmetics, and weight management. YGYI has developed and marketed additional products that meet consumer demand for apparel and accessories, packaged foods, and pharmacy discounts.
The combined YGYI product portfolio helped to deliver more than $35 million in revenue during the past quarter and is on track to provide higher sales in the coming quarters based on the current trajectory established from prior quarters. Taking into account that YGYI offers a diversified line of consumer products, the growth of the company is relatively immune from specific market turns that many uni-dimensional businesses fear. To the contrary, YGYI is well positioned to capitalize on multiple markets and at the same time position each segment for growth based on unique product diversification and consumer conscious sales efforts.
The YGYI Culture Makes A Difference
Few will argue about the change in cultural sentiment taking place around the globe, and YGYI takes an interest in being center stage for the transformation. The company culture thrives on maintaining its core values of integrity, trust, respect, and professionalism. And, profit is not the leading driver in this company’s culture. They take pride in fostering a high level of passion and enthusiasm, a devotion to teamwork, and a commitment to hard work with designed results for excellence.
But, investors should fear not. The YGYI team also embraces its role of bringing shareholder value to its investors. And, with a new report of record sales published in November, the management team is on track to deliver on that mission. With shares trading in a range of between $4.50 – $5.50 during the past two months, investors may enjoy an opportunity to consider taking ownership in this company at what many investors believe to be undervalued prices. But, just assuming that a stock is undervalued is not enough.
What investors need to realize is that YGYI is building a formidable arsenal of products, each with robust revenue-generating potential that may soon lead to the company getting rewarded from both an increased institutional and retail investor interest that will apply appropriate valuations. Once that begins, and due to the relatively tight liquidity in free trading shares, the share price may enjoy deserved and swift moves higher as the share price catches up with the building fundamentals and proven business model at the company.
Although investors may enjoy a small window of opportunity through year-end, if YGYI reports yet another record quarter in its upcoming Q4 report, the likelihood that the share price remains tied to these levels becomes less likely. And, that very premise leads to the original thesis of why YGYI may be a holiday gift that keeps on giving. After all, at current prices, YGYI stock may be worthy of getting wrapped in beautiful paper with a gorgeous bow. And, even if it’s not given to another person, it sure may be an excellent gift for a person you may know very well…yourself.
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