Natural Health Farm Holdings Inc (OTCMKTS:NHEL) stellar start to the year appears to have hit a key resistance, as the stock has started pulling down. However, the pullback could be a minor correction on investors taking profit after a 60% plus spike.
NHEL Share Price Analysis
The stock remains well positioned to continue edging higher supported by solid fundamentals. The company’s rapid expansion drive both at home and abroad, is one of the catalysts fuelling the upward momentum.
In addition, the company has strengthened its product pipeline as part of an effort for enhancing its prospects in the Asian Market as well as in Australia. The company is also, well positioned for growth given its portfolio of high-quality Nutraceutical, Biotech management, and operations teams.
Natural Health Farm Holdings rallying in the market does not come as a surprise given the wave of positive developments that continue to affirm its long-term prospects. The stock has once again started climbing the ladder after coming under pressure at the $1.44 level.
A violation of the $1.44 resistance level should open the door for the stock to continue powering high as has been the case, for the better part of the year. Above the critical resistance level, the next stop would be the $2.50 mark, seen as the immediate resistance level.
Short sellers, on the other hand, would have to breach the $1 a share support level to continue pushing the stock lower. As it stands, bulls remain in firm control and look set to continue pushing the stock higher.
About Natural Health Farm Holdings
Natural Health Farm Holdings casts itself as a biotechnology company focused on the development of healthcare eco-system natural and naturopathic products. Since its inception, the company has developed and commercialized proprietary web-based Neuropathic Learning Management System that provides insights on various diseases.
Why is Natural Health Farm Holdings Surging?
Investors taking note of Natural Health Farm Holdings rapid expansion drive explains why the stock has continued to edge higher for the better part of the year. Expansion in the U.S has seen the company acquire all issued and outstanding shares of Natural Health Farm.
The transaction paves the way for the company to gain access to a renowned distributor of neuropathic and nutraceutical products in North Carolina.
“The acquisition of NHF Inc. is a small but very important acquisition because it will enable NHEL to enter the U.S. marketplace rapidly and better position Judy to build a strong team to grow organically and through additional strategic acquisitions,” said Vernon Tee, President of NHF Holdings.
In addition to domestic expansion, Natural Health farm has also set sights on South Africa’s nutraceutical marketplace. The company has consequently executed a term sheet for the acquisition of an equity stake in Biodelta Ltd, a leading nutraceutical manufacturer in South Africa.
The acquisition of Biodelta opens the door for the company to expand its footprint in Africa, in pursuit of new opportunities for growth. The acquisition will also allow the company to gain access to many skilled managers key to increasing manufacturing expertise and capabilities.
In addition, Natural Health Farm Holdings has embarked on a strategic retail product and market expansion in Australia, through its partially owned PremaLife Australia Pty Ltd. While focusing on the Australian Nutraceutical market, the company intends to expand PremaLife business model to include a new set of retail-focused products, distribution channels
“In Australia, through expansion of PremaLife practitioner-only business model to include direct-to-consumer products, we will be providing the first ever opportunity for established Aussie distributors, retailers, and their loyal customers to purchase many of the most popular PremaLife products without a medical doctor or other healthcare providers,” said Mr. Tee.
Natural Health Farm has also set sights on Malaysia and China nutraceutical marketplaces with its aggressive retail strategy. The two markets present an exciting target market as they come with a combined population that is 60 times that of Australia.
A rapid domestic and international expansion drive affirms what could turn out to be a breakout year for Natural Health Farm in the Nutraceutical space. The company strengthening its retail network also affirms its push for new opportunities for revenues.
Investor confidence in the stock looks set to continue growing given the underlying developments that affirm the company’s growth metrics. After the recent pullback, the stock looks set to continue rewarding dip buyers.
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Disclosure: We have no position in NHEL and have not been compensated for this article.