The one OTC stock that needs to be on every investor’s radar right now is Healthier Choices Management (OTCMKTS: HCMC) or HCMC stock.
We alerted our subscribers several times about the historic upside potential of this company, first on February 2 and again on May 23. For months now, we’ve been alerting investors to the endless possibilities of this company. Especially as we continue monitoring HCMC’s patent infringement suit against tobacco giant Phillip Morris and its IQOS alternative tobacco product.
With a multi-faceted business model, HCMC is at the forefront of many booming sectors that offer people healthier alternatives for their daily lives. So far, the market sure seems to like what they’ve done, as the stock’s advanced 1,200.00% in the last 52-weeks.
Not to mention, after our February report, shares of the stock popped by 167.57% in the span of just about 9 days.
The key to trading OTC stocks is finding momentum BEFORE it happens and then be patient. Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens.
After all, when we first broke HCMC to our subscribers, in that same February 2 article, we tipped our subscribers off on INKW, LODE, and SNDL before their massive rallies. After we published, which you can read here, INKW surged by as much as 103.78%, LODE surged by as much as 233.68%, SNDL surged by as much as 183.65%.
We always alert our subscribers first before we publish for our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here. We alert our subscribers with our best ideas before our regular readers.
You might remember a company by the name of Vapor Corp (OTCMKTS: VPOR). Well, the company evolved and changed its name and symbol to HCMC, Healthier Choices Management. Today, HCMC is a disruptive company that provides consumers with healthier choices and alternatives for their daily lives.
The biggest asset HCMC owns is its Intellectual Property (IP) suite. After all, as we mentioned in February and May, its patents and IP is the entire reason it’s suing one of the biggest tobacco behemoths in the world, Philip Morris.
Moreover, just as a reminder, when we first altered our subscribers to the issues with Philip Morris in February, the stock popped by 167.57% in the span of just about 9 days.
With patents primarily issued in the United States and Canada, HCMC’s IP suite has a niche focus on safer vaping technology, along with synthetic or imitation nicotine compositions, processes, and manufacturing methods.
Because the company’s IP suite is so extensive, it recently formed a wholly-owned subsidiary, called HCMC Intellectual Property Holdings, LLC. The entire purpose of this subsidiary is to hold and market its IP assets. This subsidiary will own all of the patents, trademarks, and other intellectual property of HCMC and be tasked with monetizing it all.
HCMC is also heavily involved in health foods and retail, with its other wholly-owned subsidiaries, Healthy Choice Markets and Healthy Choice Markets 2. Under these subsidiaries, HCMC owns the following:
- Ada’s Natural Market, an 18,000 sq. ft. full-service grocery store serving Fort Myers, FL.
- 3 Paradise Health & Nutrition locations in the greater Melbourne, FL area.
These stores proudly serve their local communities and provide consumers with all-natural and organic products in a friendly and helpful atmosphere. If you walk in, you’ll see aisles and aisles of traditional groceries complete with frozen, healthy home, vitamins & supplements, health & beauty, fresh produce, along with hormone and antibiotic-free meats and bulk foods.
Not to mention, Ada’s also provides chef-prepared ready-to-go foods, a 100% organic juice & smoothie bar, a free-trade coffee bar with fresh-baked-daily baked goods from a local artisan baker, and the company’s flagship Greenleaf Grill fast-casual in-store restaurant.
Healthier Choices Management Corp. also owns 7 vape stores across the southeast United States with store brands such as The Vape Store, Vapor Max, and The Grab Bag. With these stores, HCMC offers smokers an alternative to traditional cigarettes and potentially a healthier way to get their fix without the smoke, tar, ash, or carbon monoxide found in cigarettes. All through an endless selection of industry-leading vaping hardware and e-liquids.
The best part?
The market seems to be noticing everything HCMC is doing, judging by the company’s 1,200.00% 52-week return.
But what makes this stock even more enticing is the fact that it’s pulled back. So let’s take another look at the chart real quick.
Notice that with the stock’s pullback, it’s become nearly oversold based on its 37.70 14-day RSI, and based on its MACD oscillator.
Plus, according to BarChart, many of its technical indicators show BUY signals too, such as its 20 – 50 Day MACD Oscillator, 20 – 200 Day MACD Oscillator, 50 – 150 Day MACD Oscillator, 50 – 200 Day MACD Oscillator, 150 Day Moving Average, 200 Day Moving Average, and 100 – 200 Day MACD Oscillator.
We will mention how massive this lawsuit with Philip Morris could be for the stock and its other primary catalysts. Still, needless to say, with the stock trading at this level, it could be massive.
What Is The Company’s Business Strategy?
Healthier Choices Management Corp’s core business strategy includes, but is not limited to the following:
- Attempt to expand upon and monetize its patent suite;
- Operate and potentially expand upon its four (4) health food and vitamin stores;
- Operate and potentially expand upon its seven (7) retail vape stores; and
- Seek out new accretive business lines within its mission of Healthier Choices to add to its portfolio.
Although HCMC has about $11.1 million in debt on the books, it still holds more cash than debt on its balance sheet while generating $3 million-plus in revenues a quarter. Furthermore, its latest earnings report had some things to like, such as its 9% increase in EBITDA and keen ability to cut costs with operating expenses down 15% in the quarter.
More On The Philip Morris Lawsuit
HCMC’s lawsuit against Philip Morris USA, Inc. and Philip Morris Products S.A. is related to their IQOS product.
Remember how we mentioned how big of a deal HCMC’s IP suite was?
Well, HCMC’s lawsuit is claiming patent infringement by Phillip Morris. HCMC believes that their patent rights are being infringed with IQOS, an alternative tobacco product marketed and sold by Phillip Morris.
With Philip Morris’s claims of IQOS approaching 14 million users, along with the company making no secret of the $3 billion+ it’s invested in smokeless tobacco products, watch out if this holds up in court. It won’t only be an egregious example of bullying and patent infringement by a blue-blood large-cap. It will be potentially massive for the little guy, HCMC, and its stock price.
This isn’t just some shot-in-the-dark lawsuit, either. HCMC is represented by Cozen O’Connor, one of the top IP litigation firms in the world. But HCMC isn’t the only company coming for the bully, Philip Morris. IQOS is facing two additional patent infringement suits filed by RJ Reynolds Tobacco Company. One claim aims to stop the importation of IQOS into the United States. At the same time, the other is a patent infringement action currently pending in the Eastern District of Virginia.
“We are pleased that after a lengthy and careful analysis, a law firm with the patent litigation reputation and strength of Cozen O’Connor will be enforcing our patent rights,” said Jeff Holman, CEO of HCMC. “We look forward to proving our allegations of infringement in this matter and intend to continue to move forward against any and all companies that infringe upon our intellectual property in both the tobacco and cannabis categories.”
What Other Catalysts Could Push HCMC Stock?
Our May report mentioned the company’s re-launch of TheVitaminStore.com as a significant catalyst, no matter how the Philip Morris lawsuit goes. TheVitaminStore.com was initially acquired in HCMC’s takeover of three Paradise Health & Nutrition stores in Florida. The Paradise stores sell vitamins, groceries, personal care items, and household products through the Healthy Choice Markets subsidiary.
After the acquisition in March, Jeff Holman, CEO, had this to say:
“Management has recognized and is grateful for both the national attention that HCMC has received over the past several months, and for the very vocal support of its shareholder base, which is now over 306,000 shareholders strong. This has provided the Company with the perfect opportunity for a re-launch of HCMC’s TheVitaminStore.com, as well as an opportunity to offer our Ada’s brand of high quality vitamins and supplements to a national audience.”
The company also announced an extension of the expiration date for its rights offering to June 10, 2021.
Jeff Holman, CEO, said, “We have received significant positive feedback regarding the Rights Offering. In addition, we have received a flood of communications in the last 2 days expressing concerns about stockholders having insufficient time to submit their subscription materials due to the short time frames resulting from submission deadlines set by their brokers, trading platforms and custodians. Accordingly, we have concluded to push back the Expiration Date of the Rights Offering to June 10, 2021 to provide all stockholders additional time to participate.”
We believe that HCMC is one of the best bets for investors on the OTC Markets.
Numerous catalysts are coming up to make all this happen.
- Lawsuit with Philip Morris
- Re-launch of TheVitaminStore.com
- Extension of the expiration date for its rights offering
But the best part?
It’s a stock that has shown enormous pop potential in the past, and it’s trading at a potentially very oversold level.
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As always, good luck to all (except the shorts)!
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Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.