Time To Buy Vet Online Supply Inc (OTCMKTS:VTNL) On Sales Growth Buyback Plan?

Vet Online Supply Inc (OTCMKTS:VTNL) has started to break out, after plunging to all-time lows in 2017. Investors’ confidence on the stock has received a boost on the company announcing sales projections that exceeded projections and reiterating plans to carry out share buybacks.The stock has already spiked to three months highs, with traded shares hitting the roof on renewed investors’ interest. The resurgence has to do with improved performance on the execution of the company’s business plan. VTNL Daily ChartIt could be a matter of time before the stock spikes to the $0.01 handle, a key psychological level that would affirm an upward trend. In our view, the stock remains well positioned to trade higher, as its efforts are starting to pay off in terms of growing sales.What Does Vet Online Supply Do?Vet Online Supply is a development stage company engaged in the sale of veterinary supplies for vet clinics. The company supplies a range of veterinary products used in the treatment and prevention of a range of animal diseases.The company also sells products via its e-commerce web-based platform, Oscommerce. Its primary goal is to supply the $38 billion industry with value-priced superior quality products.Sales Growth Factor Vet Online Supply is making the right moves in its pursuit of market share in the $38 billion veterinary products market. The company is fresh from signing a new contract with GCS Corporation, for the sale of PET CBD products in over 5,000 marijuana dispensaries along the west coast.The partnership should go a long way in strengthening the company’s sales channel as it continues to expand its footprint in the cannabis space.The GCS partnership builds on a similar agreement the company signed with a California distributor in February. The agreement is for the placement of the company’s CBD Pet products in marijuana dispensaries across the state.Vet Online Supply has already exhausted a purchase order for 10,000 units for CBD Pet Drops and 7,000 units for CBD Pet Supplement. The exclusive agreement runs through February 2020.

“We’ve been negotiating with a cannabis retail company to place our CBD Pet Products on the shelves in marijuana dispensaries. They have agreed to start placing the product in March-2018. We are expecting $3M in purchase orders for this sector of our market. We feel that a large majority of customers utilizing the marijuana dispensaries are also pet owners,” said CEO, Dan Rushford.

Over the last two months, the company has received orders worth $3.7 million for its CBD Pet Drops and Treats. The orders underscore the rate at which the company’s sales channel is growing expected to lead to more cash flow in future.In a bid to keep up with the momentum and growing demand, the company has launched a new line of CBD Oral Pet Sprays. There are also plans to launch a new Pet Performance product in the coming weeks.Vet Online Supplies is targeting Big Box stores such as PetSmart and PetCo with the new products as it moves to diversify its sales channel. The company’s online store will also sell the products directly to consumers.Share Buyback PlansBuoyed by the rate at which the company is growing on the sales front, the management team has announced plans to buy back some of the company’s shares in circulation. In January and February, the company received purchase orders worth $529,790 and $245,000 which have positioned it in a strong financial position to carry out the buybacks.The buyback seeks to return value to shareholders while also reducing dilution on the stock. Vet Online Supplies is also using the buyback to strategically position itself on a possible listing on the New York Stock Exchange.

“Dividend stocks are inflation resistant because as prices rise the profits of a company rise as well. Dividends are based on company profits, and we want our shareholders to benefit and support Vet Online Supply. We are approaching our revenue target sooner than anticipated, and this will assist us in expediting our plan, according to management,” said Mr. Dunford.

Vet Online Supply 2018 Prospects Two months into the New Year and Vet Online Supply has already provided a glimpse of what the future holds, as it continues to make a name for itself in the $38 billion veterinary products market. The company is slowly carving, for itself, market share on the supply of CBD pet products.The fact that the company is already thinking of returning value to shareholder through buybacks should strengthen its sentiments among income-focused investors. Sales growth is the catalyst that is poised to continue pushing the stock up the chartsThat said, we remain bullish about Vet Online Supply prospects in the market given that the stock has already started to spike, on surging trading volume.We will be updating our subscribers as soon as we know more. For the latest updates on VTNL, sign up below!Disclosure: We have no position in VTNL and have not been compensated for this article.