Nightfood (NGTF) Stock Has The Potential To Grow Wings

I was recently asked by a friend and colleague why it is that I prefer working with penny and small cap stocks over their large cap counterparts. My answer was simple, penny stocks have far more room for growth and by choosing those that are pioneers in emerging industries, the potential profitability is hard to ignore. 

Take Nightfood (OTCMKTS: NGTF) for example. 

At first glance, the company looks like it may just be another ice cream company, but when you dive in deeper, you begin to realize that the company’s story goes far beyond ice cream. Instead, it’s a pioneer of night time health food. 

While there are plenty of healthy foods out there, few are considered “snacks,” and even fewer are designed to solve a significant problem. Due to the fact that Nightfood is developing healthy snacks that are designed to solve a real problem, and the fact that the company has a long way before it completely saturated its target market, the potential for growth here is hard to ignore. 

Here’s what you need to know:

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Nightfood Is Solving A Significant Problem

Obesity is commonplace in the United States. According to the Trust for American Health, more than 40% of Americans fall into the obese category. If you’re one of them, you’re not alone. 

Fixing this problem takes much more than healthy eating and working out, it requires a sense of the cause of the problem and a real-world idea to fix it. 

One of the leading causes of obesity is night time snacking, which is much more than a habit. People don’t just decide they’re going to eat fatty, sugary, and salty foods at night because they want to be bloated when they fall asleep. We do it because our bodies are hardwired to crave these snacks just before bed. 

Why?

It goes back to the era of the cave man! During this time, calories weren’t so readily available. As a result, night time cravings were actually a necessity. Without them, human kind wouldn’t have been so likely to make it so far. 

Today, these cravings are left over impulses from our caveman days, but due to the fact that calories are so readily available today, this wiring actually hurts us, leading to poor sleep quality and ultimately obesity. 

Nightfood Has Found the Solution

Nightfood, and its management team, know that breaking a hardwired instinct to snack at night is difficult to say the least. Instead, if you embrace it, and eat snacks that actually promote sleep and a healthy lifestyle, you’ll be more likely to accomplish your goals. 

That’s why Nightfood is so interesting. 

The company has specially formulated nine flavors of ice cream to promote better sleep quality while curing your cravings with less calories, minimal sugar, and minimal fat.

At the same time, you won’t be giving up anything when you snack on the company’s ice cream, with flavors that aren’t just formulated to promote better sleep and less night time calories, but to cure the craving because you’ll actually want to eat eat. 

Now, I’m not saying that the company’s ice cream will solve the obesity epidemic in the United States, but I am saying that it’s a great step in the right direction. 

Going Back To The Investment Opportunity

As mentioned above, when looking for strong investment opportunities, I like to find small companies that are onto something. These are companies with products designed for the masses that haven’t yet saturated their markets, and NGTF is a great example of that. 

The company’s ice cream products solve a very real issue, and do so in a fun way. Its products are designed for the masses, and distribution is starting to pick up, with the brand found in more than 1,000 Walmarts coast to coast along with hundreds of other stores. Even some hotel chains have jumped on the opportunity to sell this night time snack. 

At the same time, the company earned a feather in its cap when its ice cream was named the official ice cream of the American Pregnancy Association, further validating its work to solve the significant night time snacking problem. 

While the company is starting to work its way into big box retail, and by all accounts, consumers love the product, market saturation is a long way off, meaning that there’s plenty of opportunity for growth ahead. 

So, both key points have been hit:

  1. A Product That Solves A Real Problem. Night time snacking isn’t just a habit, it’s a process that’s hardwired into human beings, and one that lends a hand to the obesity epidemic as well as poor sleep quality. Nightfood products are aimed at solving those problems with snacks that are scientifically formulated to cure the craving without the excess caloric intake, all while promoting high quality sleep. 
  2. Market Saturation Hasn’t Yet Been Achieved. There’s a wide open market for the company’s products, one that seems to be welcoming the company with open arms. 

A Founder And CEO Whose Interests Align With Yours

Oftentimes, CEOs make moves at the detriment of their investors. However, that’s not the case here. The CEO of the company, Sean Folkson, isn’t just running what he believes to be the next big thing, he’s put his money where his mouth is. In fact, he’s the largest shareholder of the company. 

While he had all the opportunity in the world to offload shares in February of this year, he voluntarily extended his lockup period on his shares until 2022, showing that not only does he believe in the work he’s doing, he’s likely to make moves that are in the best interest of his shareholders. Why? Because he’s the biggest one!

Aside from investing in companies with plenty of room to grow and a product that solves a significant company, it’s also nice to invest in companies where the management teams are in the same boat as investors, and don’t appear to be abandoning ship any time soon. NGTF fits that bill. 

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The Bottom Line

The bottom line here is that when we talk about Nightfood, we’re talking about a company founded by a man with a vision that’s willing to put his money where his mouth is, a company that has found a way to solve a significant problem in the United States and around the world, a company that’s gaining big box attention as well as the attention of thought leaders in the health and wellness industry, and ultimately, a company that represents a tremendous opportunity, especially at these levels. All in all, NGTF is one for the watchlist. 

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CNA Finance is not a financial advisor or broker/dealer. This article is for entertainment and information purposes and not a solicitation to buy or sell securities. This article is the result of a monetary relationship between Nightfood and CNA Finance under which Nightfood pays CNA Finance a monthly retainer. The article above was written by Joshua Rodriguez and outlines his honest opinion of the company. Nightfood had no involvement in the development, or editing of this article. Trading in penny stocks can lead to potentially significant losses.