Elev8 Brands Inc (OTCMKTS: VATE) is struggling for direction after bouncing off the lower end of a tight trading range. With the stock still engulfed in a long-term bear trend, amidst surging short selling pressure, new groundbreaking catalysts may have to come into play to avert further slides.
VATE Price Analysis
The $0.03 mark is a technical support level that the stock needs to hold on to if it is to have any chance of bouncing back after experiencing wild swings in recent months. One of the developments that could prop the stock’s market sentiments is the confirmation that Elev8 Brands is making an entry into the beverage market with ready to drink CBD-infused iced coffee.
The company has also unveiled a newly redesigned website, featuring an incredible product line as it seeks to embark on an aggressive e-commerce drive. Expansion into new markets in pursuit of new opportunities for sales of a refurbished product line is another development that affirms the company’s long-term prospects after a rollercoaster 2018.
Amidst the flurry of positive developments, it awaits to be seen if the stock will hold on to the $0.03 support level. Above the critical technical level, Elev8 Brands remains well positioned to bottom out and make a run for the $0.04 level, the next substantial resistance level.
A rally followed by a close above the $0.04 mark could give bulls, still on the fence, a reason to come in and continue pushing the stock up as part of the emerging uptrend. Conversely, a plunge below the $0.03 support level could result in the stock plunging even further, in continuation of the descending bear trend line.
What Does Elev8 Brands Do?
Elev8 Brands is a development stage company that develops and markets products for the fitness and wellness market. The company’s product line encompasses hemp-based food as well as beverage and healthcare products.
Elev8 Brands is a potential bounce-back play on confirming it has entered the beverage market with ready to drink CBD infused iced coffee. The expansion continues to strengthen the stock’s market sentiments that have taken a significant hit over the past year.
The company has since unveiled a ready to Drink CBD-infused iced coffee in a can as it seeks to strengthen its revenue streams in the multi-billion industry. With the launch, the company is on the very cutting edge of the CBD-infused beverage market
“The first shipment of CBD-infused iced coffee officially shipped out last week, putting Elev8 Brands in the Ready-to-Drink CBD space for the first time. In addition, CBD-infused iced teas are just days from shipping and, as a company, we are positioned to be the first publicly traded, national brand to launch both CBD-infused iced tea and CBD-infused iced coffee in the ready-to-drink beverages market,” stated CEO Ryan Medico.
CBD Commercialization Drive
The company has also redesigned its website and search engine optimization that will support a commercialization drive in pursuit of sales. The product-focused website is expected to continue driving sales by positioning the company as a leader in CBD-infused beverage marketplace.
The launch of the new website comes on the heels of Elev8 Brands launching new products made up of CBD-infused iced tea and iced coffee. The Company has also inked a strategic partnership with Kelly Distribution that has already ordered the new drinks with a view of making them available in its stores.
Expansion into new markets has also come into play as Elev8 Brands continues to explore ways of strengthening its sales channel. The company has already set foot in Texas as well as in two locations of foodies market in Massachusetts and Seaside Market in California as well as Tennessee.
“We are so excited to release these new products. We’ve had an excellent reception from many distributors and customers who are anxiously awaiting samples once the products are ready to ship,” stated Mr. Medico.
What Next For Elev8 Brands
Elev8 Brands might as well have hit bottom and due for a correction higher as a bounce-back play. VATE holding above the $0.03 mark makes it an ideal bounce-back play as underlying fundamentals continue to show signs of improvement.
CBD beverage launch complimented by expansion into new markets is some of the developments that underscore the company’s long-term prospects. That said the stock looks set to bottom out as short sellers exit their positions.
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Disclosure: We have no position in VATE and have not been compensated for this article.