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A full time investor that has a passion for micro cap stocks that looks for undervalued companies for people to invest in. Charts may tell a story but the fundamentals of a company is where the success of the company lies.
  • An Undervalued Play In Stevia Corporation 5 comments
    Jul 13, 2014 12:39 PM | about stocks: STEV

    Summary:

    Stevia Corp is diversified with products involving stevia and hemp.

    Stock price has fallen down due to dilution that is nearly over that should help the stock price go back up with financials coming out this week.

    With a Fortune 500 company deal in the works revenues and exposure will increase.

    Introduction

    Much of the hype in early 2014 in the OTC world was marijuana stocks. Companies would just say they were entering the industry and the stock price would shoot up by at least 30%. Now many of these marijuana stocks have been consolidating as you can probably tell by looking at the charts on most of these stocks (VAPE, VPOR, MJNA etc…). A company that has a great deal of potential and is not truly considered a marijuana stock that investors should take a look at is Stevia Corp (OTCQB: OTCQB:STEV).

    Company Description

    Stevia Corp. is a farm management company focused on best practice agronomic competency in order to deliver high value stevia through proprietary plant breeding, excellent agricultural methodologies and innovative post-harvest techniques. To date, the Company has acquired two grower supply contracts and three nursery fields in Vietnam (via OTC website).

    Stevia Potential

    For those who are not aware stevia is a sweetener and sugar substitute made from the leaves of a plant. The availability of stevia varies from country to country. For example, Europe gave it regulatory approval in 2011 and that is where Coca-Cola Life is going to be released in 2014. Countries are trying to find ways to help defeat illnesses and promote healthy lifestyle with products such as stevia and hemp. As you can see with that chart below the market for stevia is just going up every year.

    (click to enlarge)

    As I mentioned above, Coca-Cola Life is product that is going to be released in Europe sometime this year. This means people are still able to enjoy drinks such as Coke, but are being healthy while drinking it. What these companies are now trying to do because people are trying to get healthier is to find ways the people will still drink the product and still be healthy at the same time. Stevia is not only found in beverages, but also 6,000 products that include in foods and medicines and once people get familiar with this product the demand will continue to rise.

    Investment Opportunities

    Stevia Corp. not only offers a great a great product in stevia, but they also announced in March they were getting involved in the Hemp business. Food and fiber uses for industrial hemp are growing rapidly which is being fueled by people starting to be aware of the benefits of hemp. In 2012 the retail value of North American hemp food, vitamin and body care products was estimated to be in the range of $156 to $171 million. Just like stevia the business is just getting started and will continue to expand. The company is planning to announce the launch of the website RealHemp.com within the coming days to capitalize on this movement. This will allow them to enter the US hemp industry and start to become a leading importer, manufacturer and licensor of hemp products. Right now Stevia Corp is working in Asia to find the best products as well as suppliers to help them import the products and distribute throughout.

    What the company has also going for it is that fact they are in talks to supply a Fortune 500 company. Stevia Corp. should be giving an update on the status of the deal sometime this month. As far as who the company is there is speculation it could be Coca-Cola which is a big player. Coca-Cola Life is a product of The Coca-Cola Company launched in Argentina and Chile in 2013. Now if this big of company is getting into this business and expanding other players will start to follow the trend. Being able to supply a Fortune 500 company will create extra revenues for a company that is just getting started.

    Technical Analysis

    (click to enlarge)

    Looking at the chart you can see the RSI just moved from oversold to a nice bullish formation with a lot of room to continue to move up. The William % as well is oversold and primed to make a run up. The price is very cheap compared to buying it last August you are potentially getting a huge discount. Also, looking at the chart you can tell in most occasions when it bounces of the Bollinger Bonds it tends to gap up. Looking at the chart you can tell it is primed to make a run. With the dilution period almost over (which helped contribute to the recent decline) there are Current OS of almost 181,000,00 with nearly 30% shares owned by directors and officers meaning they have a lot of stake as well with this business plan. The 10-K is supposed to be released early this week with the hope for an increase of revenues, information on the Fortune 500 deal, and the web launch of RealHemp.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: STEV
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Comments (5)
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  • Mikie713
    , contributor
    Comments (230) | Send Message
     
    I'm long $STEV, any inkling which Fortune 500 company this might be?
    13 Jul, 12:46 PM Reply Like
  • AMISHGANGSTA
    , contributor
    Comments (2) | Send Message
     
    We believe COFCO to be the Fortune 500 company
    13 Jul, 01:24 PM Reply Like
  • AMISHGANGSTA
    , contributor
    Comments (2) | Send Message
     
    COFCO
    13 Jul, 01:24 PM Reply Like
  • Mikie713
    , contributor
    Comments (230) | Send Message
     
    Thanks that would make sense since $STEV has established relations in Asia.
    13 Jul, 01:34 PM Reply Like
  • Jaxski12
    , contributor
    Comments (3) | Send Message
     
    Nice write up... great breakdown of Stevia Corps business plan. I really like this company and Im invested heavily.
    13 Jul, 06:51 PM Reply Like
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