For those in search of a fresh speculative opportunity in the specialty retail space, Gentech Holdings Inc (OTCMKTS:GTEH) is becoming an increasingly interesting story that’s worth a perusal at this stage, because it’s likely an important point for the company in terms of its evolution toward sales growth and more juice in the trading tape. First off, this company has clearly pivoted on some level. It was a CBD play, but now we would suggest that it has evolved into a premium subscription coffee play – which is a robust, high-growth market in its own right.
We are huge believers in the structural trend toward increasing delivery and subscription packaging for daily household needs. Meals, groceries, personal hygiene goods, pet foods, toiletries, and of course, Coffee. That’s the direction the world is moving. You know you’re going to need more of it. So why not just sign up to a program that takes care of that need with no effort on your part and with a brand that you like. It’s a no brainer, which is why the coffee subscription package industry is growing so rapidly. GTEH is the latest entrant into that frenzy, and the company has locked in a blue-chip supplier farm in South America as well as a provisioning partner on the west coast to ensure a big jump in demand is feasible without upfront balance sheet risk.
Gentech Holdings Inc (OTCMKTS:GTEH) promulgates itself as a company that operates a chain of hemp centric coffee shop retail spaces under the Healthy Leaf brand name. The company offers CBD-infused chocolates, skin creams, artisan teas, artisan coffee, wellness snack bars, and pet treats through its retail spaces.
However, more importantly, the company is also in the midst of launching a very promising premium specialty coffee subscription package product, as noted.
According to recent company communications, we should expect an announcement tomorrow or later this week because it was promised as a launch coming in “early March”.
GenTech CEO David Lovatt recently commented, “I am extremely pleased with our brand development and implementation thus far, and I feel supremely confident that we have put in place a logistics process capable of delivering at scale as needed with no irregularities or hiccups. We have provisioned for the best-case scenario in terms of order volume while taking no up-front balance sheet risk, which represents a major win for our shareholders.”
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As noted above, GTEH is preparing to launch a high-end premium specialty coffee subscription product. We would anticipate a “launch!” press release any day now, and the market may react.
According to a recent release, the company has timed the launch to “accommodate both the inclusion of a fully-vetted, state-of-the-art “coffee capsule” version of its premium and CBD-infused subscription coffee package product offering as well as the full execution of a partnership agreement with a large provisioning partner that will remove up-front balance sheet risk for GenTech shareholders during the initial scaling-up process as subscribership grows, even if the initial market response dramatically surpasses aggressive estimates for incoming orders, supplies, and shipping over coming months.”
The stock has been picking up in recent action, rallying about 10-15% over the past week. Volume has also been on the rise, so traders may be positioning ahead of the announcement that will finally take this company into full commercial-stage operations and the first tangible signs of topline growth.
Now commanding a market cap of $1.8M, GTEH is pre-revenue at this point, but rapidly barreling toward sales as the company settles into a high-end positioning framework in the supercharged subscription coffee space. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $GTEH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $GTEH, either long or short, and we have not been compensated for this article.