Youngevity International Inc (NASDAQ: YGYI) is having an incredibly strong start to the trading session this morning, and for good reason. In an investor climate that’s ripe with interest in CBD, the stock is being outlined as one of the least risky plays in the space. Of course little risk and investor interest equals big gains, and that’s just what we’re seeing today. Below, we’ll talk about:
- Why YGYI is flying in the market this morning;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why YGYI Is Headed Up Today
As mentioned above, Youngevity International is having an incredibly strong start to the trading session this morning, and for good reason. Just a few trading sessions ago, the company announced the launch of two new CBD-infused beverages. At the moment, investors are fuelled with demand for CBD-related stocks.
Interestingly, an article came out about YGYI this morning that outlined a key reason why it might just be the best CBD play out there. Among other reasons, the article pointed to the company’s market cap. Before this run, the market cap was approximately 1x expected 2019 revenue, before the consideration of a CBD beverage. This is a very rare multiple to see, and with CBD drinks coming out, revenue is likely headed up.
Considering this, investors are excited about the stock and many consider it to be undervalued. While there are always risks to consider, it’s hard to argue the potential here.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Youngevity International, the news is positive. The company is entering a space that has high investor interest with a multiple that says it’s probably the most undervalued stock in the space. So, it comes as no surprise that excited investors are sending the stock on a run for the top. At the moment (11:17), YGYI is trading at $8.38 per share after a gain of $2.26 per share or 36.93% thus far today.
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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 YGYI. In particular, we’re interested in following the story surrounding the company’s continued work to market its newly launched CBD beverages. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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