There is nothing we like better than discovering a company near its 52 week lows with a low public float (only 5.07 million shares) and only 9.2 million shares issued and outstanding with increasing trading volume AND a great business plan in a hot sector. The pick is Verity Corp(OTCQB: VRTY) an agricultural services company which assists farmers wanting to move to non-GMO food production.
If you have not heard about GMO, you will--Guaranteed. GMO stands for "Genetically Modified Organisms"--basically genetically altered crops. There is a rapidly growing concern about the health of the food produced with GMO. And consumer demand is increasing for non-GMO food and the labeling of GMO foods on the grocer's shelf. Whole Foods Market (media.wholefoodsmarket.com/news/...s-to-full-gmo-transparency) announced they will require all their vendors to label their products GMO or non-GMO. But everyone knows that Whole Foods is interested in increasing their non-GMO offerings and are actively committed to steering their vendors to non-GMO sources. In other words, major companies and grassroot campaigns to enact GMO labeling laws are increasing Verity's target markets.
Into this breach comes Verity Corp--a sustainable agriculture company gaining a reputation as non-GMO experts that help farmers transition to non-GMO farming. These farmers see that non-GMO crops will be in greater demand with premium pricing and are needing assistance in moving back to sustainable non-GMO crop production. With 93% of corn produced in the US currently GMO, the shift to more non-GMO translates into a huge opportunity for Verity Corp (ww.veritycorp.com) The market is coming to Verity and the word is getting out. Verity has been highlighted in the New York Times (www.nytimes.com/2013/09/20/business/...iller-affects-the-soil.html?hp ) and recently highlighted as non-GMO agriculture experts (www.non-gmoreport.com/articles/may2014/...sustainable-production.php) .
Verity Corp has customers in over 37 states and have three facilities -- in South Dakota, Iowa and Georgia. Since the beginning of the year, the company has launched a number of high margin proprietary products that promise to have an effect on their bottom line going forward.
But what really attracts us to the Verity story goes back to
Very low public float of 5.07 million shares and only 9.2 million shares issued and outstanding
52 Week Trading Range $0.14-$0.90 (now at $0.22)
Rapidly growing market sector in agriculture
Technical Chart shows Breakout at 0.227 (50 Day Moving Average)
Check out Verity's website: veritycorp.com/news/
Correction from 05-14-14*** yesterday we sent a correspondence comparing today's alert to (Nasdaq: STKL) We wrote "SKTL". STKL is also in the non-GMO (non-genetically modified) food business.(STKL) grosses over $1B annually.
We are feeling very good about this one short and long term.