Pacific Ventures Group Inc (OTCMKTS:PACV) Looks To Have Bottomed

Pacific Ventures Group Inc (OTCMKTS:PACV) is showing signs of bouncing after hitting all-time lows. The bounce-back comes as investors reacting to a series of groundbreaking developments that underscore growth in the core business. For starters, the company is fresh from signing an asset purchase agreement for a California food distribution company.

OTCMKTS:PACV Price Analysis

An aggressive commercialization drive of the company’s SnoBar product line is another development that continues to excite the market, consequently fuelling the stock’s upward momentum. Management reaffirming commitment to implementing a business model focused on strategic acquisitions in the wholesale food, beverage and alcohol industry also continues to strengthen the stock’s market sentiments. PACV Daily ChartAfter a harrowing plunge in the first half of the year, Pacific Ventures needs to take out the $0.01 resistance level, to reaffirm the emerging uptrend. The stock finding support above the $0.01 resistance level should pave the way for the stock to make a run for the $0.02 mark, another crucial technical level.Below the $0.02 level, the stock remains susceptible to further drops given the underlying bearish trend and the fact that short-sellers appear to be in control.

What Does Pacific Ventures Do?

Pacific Ventures is a company focused on the consumer products segment. The company produces, sells and distributes a wide array of consumer products in the food beverage and alcohol-related fields. Some of its popular products include alcohol-infused ice creams and ice pops as well as ice creams under the SnoBar brand name.

Distribution Company Acquisition

Pacific Ventures price action activity has received a boost, after a long period of consolidation, on the signing of an asset purchase agreement. The company is in the process of acquiring a distribution company focused on frozen foods and other products in Southern California.The distribution company Pacific Ventures is acquiring boasts of annual revenues in excess of $30 million while focused on customers in California and nearby states. The acquisition is poised to strengthen Pacific Ventures food distribution business in addition to creating new revenue streams.

“The acquisition will result in a food distribution business with greater revenues and profits. The company will also have a larger combined customer base, expanded range of products, and an expanded network of retail and institutional accounts,” Pacific Ventures in a statement.

The acquisition comes at a time when the management is increasingly looking for new ways to expand the current revenue base. In the recent past, the company has inked deals poised to expand SnoBar target market into the east and west coast states.Deals with local distribution centers should make it possible for Pacific Ventures to reach a wider target market with its SnoBar product line. The company is hoping to build on rapid growth that saw monthly revenue gross revenue increase by 10% in July. Revenue growth stems from strong demand on an array of the company’s products. Given the strong demand, pacific ventures management expects revenue to increase by 50% for the full year.

Reverse Stock Split

In addition to pursuing new revenue opportunities, Pacific Ventures management has confirmed they are not contemplating carrying any reverse stock split. Focus, according to the management, is on growing the business organically and inorganically. That said the management says they are contemplating carrying out strategic acquisitions similar to the distribution center in California as a way of expanding the current business empire and uncovering new opportunities.

Bottom Line

Pacific Ventures has recovered from a harrowing plunge in the first half of the year and showing signs of edging higher. Growth in the core business through strategic acquisitions is one of the developments that underscore the company’s long-term prospects.The stock looks set to be the subject of renewed investor interest as management continues to make all the right moves. Given the underperformance of the past few months, the current risk/reward setup looks ideal considering the fundamental factors at play.Recent price action activity provides evidence that a positive trend is slowly materializing and that the stock takes out the $0.01 resistance level much sooner rather than later.We will be updating our subscribers as soon as we know more. For the latest updates on OTCMKTS:PACV, sign up below!Disclosure: We have no position in OTCMKTS:PACV and have not been compensated for this article.