LTS Nutraceuticals Inc (OTCMKTS:LTSN) Is Today's Focus Stock

LTS Nutraceuticals Inc (OTCMKTS:LTSN), the developer and marketer of nutraceutical products, seems to preparing for a big breakout. The company made a very strong move at the beginning of 2017 trading from $0.001 to $0.04 in a few days as a result of the following transaction.

"On September 29, 2016, the Issuer issued 203,679,586 shares of common stock to a custodian appointed by the Nevada District Court in case number A-16-741529-B. These shares were transferred to the current management. As of December 31, 2016, by means of an agreement executed in February 2017, the Issuer acquired all of the shares of Natural Products" Source

What's happening now? The volume suddenly increased, and the share price started to jump consequent to the acquisition of eGamerz Brand, and the distribution of eGamerz Product. In this article, we will assess this news and check for catalysts that may result into the breakout. Have a look at the chart price.SourceRecent DevelopmentsFirst of all, a little bit of background about the company. LTSN's strategic plan is to acquire existing high quality products or develop new ones in house, build a strong brand, and manufacture and market these products. What is the market, wherein the company operates? The company uses the definition of Nutrition Business Journal to explain its retail natural products business. It consists of the following sub-markets:

"(i) personal care, (ii) natural and organic foods (iii) functional foods and (iv) vitamins, minerals and supplements." Source

Who are the customers targeted by the company? Most of the consumers are located in developed nations, and look for healthier lifestyle choices to curb the incidence of chronic, and lifestyle diseases. This new demand is increasing at a high pace. Transparency Market Research expects that the global nutraceuticals market will rise at a cumulative annual growth rate of 7.3% between 2015 and 2021.Why did the volume recently cross the 10 million shares mark? It is because of the recent news put out. The growth of the company seems to be exponential as a result of the company's acquisitions. Let's review the transactions. On April 4, 2017, the company agreed to acquire a "health & wellness network with a digital platform and presence on Roku and Xbox 360's non-gaming digital platform". As a result of this acquisition of assets, the company had created The Health & Wellness Broadcasting Corporation, which became a wholly-owned subsidiary. Furthermore, the stream of acquisitions continued with the deal signed with NutriData of California to develop a high energy supplement, specific for the gamers of the e-sports sector. The following details about the new formula were given in the press release:

"The staff of NutriData in conjunction with Natural products will develop the formula that will be original and exclusive to Natural Products. The supplement will focus on increasing focus, energy, faster reaction time, clearer thinking, endurance and will be sugar free with minimal calories." Source

In addition, the company provided some details about the e-sports industry and the supplement market, which will be targeted: "Esports will break a billion dollars in revenue for 2017 on a global basis per Business Insider and expected to reach 1.5 Billion dollars by 2020. The supplement market is expected to reach 68 billion dollars by 2024." Hence, the revenue line should increase from the product that NutriData and LTSN will develop and market.However, it seems that the most interesting news that pushed up the volume was released in May. On May 11, 2017, it was released that Natural Products, Inc., subsidiary of LTSN, had acquired eGamerz name, brand and domain eGamerz.com. The company expects to sell the product developed by NutriData using this new brand. In the press release, some new information about the new product and time frame for its sale was noted:

"The product will be available to the consumer later this month. The initial products will include multiple flavors of a powder supplement drink mix and a high energy supplement bar. The company will add additional product line within the next couple of months." Source

Finally, on May 31, 2017, it announceed conversations with distributors such as Amazon, Walmart and Target as well as an online store with Shopify. Additionally, it was explained that the company had declined offers from wholesalers, as it prefers to work directly via retail not to diminish the brand.ConclusionLTSN created a large market reaction when new market participants acquired large stakes the beginning of the year. New management usually means new projects, thus the share price was pushed higher. Later on, profits were taken and the share price went down a bit. In the most recent months, we have seen how new management has worked. It has signed deals with nutraceutical developers, acquired new brands, website domains, and signed contracts with distributors. Everything seems to be ready to start selling the products, and that is the main reason behind volume increase. Market participants believe that the future sale of products will be a catalyst and make the share price jump. Hence, try to be alert on this one, or subscribe to our newsletter. It may surprise soon. We will be updating our subscribers as soon as we know more. For the latest updates on LTSN, sign up below!Disclosure: We have no position in LTSN and have not been compensated for this article.