October 19, 2021 -- InvestorsHub NewsWire --
via pennymillions --
Benzinga
PAO Group, Inc. (OTC: PAOG)
stock is in play following its transformational announcement of
commercializing its first CBD nutraceuticals product into the $5.2
billion market. Better still, PAOG supported that news saying it
expects to enhance its new revenue stream with follow-on products
lined up to launch, possibly by the end of the year. If so, that
sets up the remainder of Q4 and all of 2022 to be a potentially
exponential period of growth for PAOG.
The clues have been in place. And not only have savvy investors
been paying attention, but many are also acting on the value
proposition by sending PAOG stock higher by roughly 220% since the
start of September. Part of those gains can also be attributed to
PAOG being in the right markets at the right time. While the
pandemic brought global industry to a grinding halt, not so for the
CBD therapeutics sector. In fact, that industry experienced a surge
in interest as people learned more about the benefits of CBD
compared to often over-prescribed and addictive prescription
narcotics.
That interest in the market benefits PAOG stock, and news of its
launch added to the more than 108% share price increase in October
alone. PAOG shares on Friday touched levels not seen in more than
six months.
The more excellent news is that increasing volume indicates that
momentum is on its side.
Sale Of The Century In PAOG
And it should be. Not only has PAOG successfully navigated the
logistical challenges of the past eighteen months, but they are
also doing what peer companies can’t do- getting a product to
market. Moreover, they have IP power to back up their position
after acquiring research into a patented CBD extraction method.
That interest paves the way for PAOG to evaluate opportunities in
the pharmaceuticals side of the business, which can be an
exponential value driver. Remember, Jazz Pharmaceuticals
(NASDAQ:JAZZ) bought
GW Pharma for $7.2 billion last year.
But while that’s a developing prospect, PAOG is taking care of
the nutraceuticals market opportunity now. And with shares of its
distribution partner North American Cannabis Holdings (OTC:USMJ)
also rising, it looks as though investors are expecting the
business to be generous on the revenues front. Shares in USMJ have
also recently closed at their highest levels in more than five
months. Thus, considering the trade as a tandem might not be a bad
consideration.
And it would be similar to investors in Tesla (NASDAQ:TSLA) buying
stock in the chipmakers that supply their essential components. In
either case, the dual rally in PAOG and USMJ is a bullish indicator
for the near term. Moreover, with a $5.2 billion nutraceuticals
market officially in play, current PAOG values appreciably
undervalue the opportunities in play.
Size Doesn’t Matter in Emerging Companies
In fact, looking at PAOG’s sub-penny share price, investors may
be getting the wrong impression. PAOG is indeed more valuable than
they look. And by leveraging its intellectual property and its now
revenue-generating assets, they are expected to get even
stronger.
The IP value alone supports a substantially higher market cap,
especially regarding extraction processes that could allow the
hundreds of companies wanting to enter the sector a chance to do
so. Plenty wants in, with the industry expected to explode in value
to a $16.4 billion market in the next six years. Thus, while the
commercialization news is exciting for PAOG and its investors,
untapped value is also in play.
Even better, it diversifies PAOG’s revenue-generating potential.
And they are taking advantage of its position. PAO Group is also
engaged in a partnership with Puration, Inc. (OTC:PURA) to
collectively market for multiple hemp growers and processors under
a single brand name – Farmersville Hemp. They intend to recruit
processing and cultivation partners to establish an industrial hemp
brand cooperative under the Farmersville Hemp Brand name. PAOG and
PURA describe its plan as similar to Sun-Maid Raisins, which
collectively markets for growers all selling under one brand name.
Thus, the strategy could combine the interests of many smaller
players to compete against the industry giants. The result could be
a more significant market share for each.
Moreover, it delivers more than an opportunity to compete in
competitive markets; it positions small companies to earn big
profits. And with PAOG working with PURA to leverage the strength
from its CBD extraction patent by helping build a lab on PURA’s
70-acre property in Farmersville, Texas, progress toward that goal
is accelerating.
Thus, from an investor’s perspective, PAOG’s partnership with
PURA will ultimately enhance its targeted mission to maximize
market penetration for its CBD-based nutraceuticals products.
Combining the potential added from USMJ and PURA, PAO Group is
assembling the pieces to create its own revenue-generating
juggernaut.
A Strategy In Motion With Two
Nutraceuticals
The most excellent news is that PAOG’s strategy is playing out
as it should. In Q3 of this year, PAOG provided a roadmap detailing
its latest developments to commercialize its CBD-based
nutraceutical product line. Part of that update put a timeline for
PAOG to commercialize its CBD-based nutraceuticals by the end of
this year. And PAOG delivered on that intention.
Better still, its nutraceuticals are targeting massive treatment
market opportunities. In fact, each provides effective relief for
chronic health issues. At least two are in play.
Its RespRX has been in development since the start of the year.
It utilizes CBD-based formulations to treat the symptoms of chronic
obstructive pulmonary disease (COPD). And it is being developed
with data from studies conducted as early as 2015 that shows CBD
has an inherent ability to open the bronchial passages. That
discovery could prove transformational to patients and to
PAOG.
Besides being a potentially best-in-class non -prescription
treatment for COPD, RespRx can benefit from multiple global studies
showing CBD as safe and lacking the often severe side effects
associated with current standards of care. To date, volumes of data
suggest that CBD-based alternatives have enormous potential to
become a preferred treatment method for COPD. And, with RespRX,
PAOG thinks it has the right product at the right time.
Still, there’s more firepower in the PAOG portfolio. A second
win could come through its CBD RELAX-RX, targeting treatment in the
$15 billion anxiety and depression market. Its promise stems from
the growing number of patients opting for CBD-based treatments over
pharmaceuticals to treat the often debilitating symptoms of
depression and anxiety. PAOG believes that its CBD RELAX-RX,
specially formulated to alleviate these conditions, can provide a
best-in-class solution. Again, its patented extraction process and
ability to create specific formulations add muscle to that
expectation.
There’s more good news. PAOG has additional interests in the CBD
nutraceutical space with EVERx CBD Sports Water.
Strengthening The Value Proposition
Enhancing its value proposition is PAOG’s interest in what could
become a staple in its revenue-generating arsenal, EVERx CBD Sports
Water. In a partnership with PURA, that product is already
generating revenues. In fact, through a distributorship agreement
with Alkame Holdings (OTC:ALKM), 2020
sales are expected to eclipse the $2 million level. And an update
in the first part of 2021 indicated that EVERx sales were staying
resilient despite the massive logistical hurdles put in place by
COVID-19. Still, the challenges worsened into the first quarter of
2021, potentially putting pressure on sales. That’s understandable.
Updates are expected to be provided in Q4.
Still, even if sales of EVERx were temporarily slowed, PAOG’s
primary value drivers are very much accelerating. In fact, with
commercialization confirmed, the revenue-generating wheels are not
only in motion but picking up speed. Couple sales with high
margins, the recipe to create shareholder value in the coming weeks
is complete. Hence, its share price rally could be a drop in the
bucket compared to what can happen if sales of its nutraceuticals
gain market traction.
A Breakout In Q4 2021
Better still, the rally can gain momentum sooner rather than
later. Not only is the commercialization news of its first
nutraceutical a big deal, but its portfolio could bring several
additional products into the market by the start of next year, if
not sooner. And with one revenue-generating catalyst now in play,
PAOG appears to be in its best position ever to capitalize on its
opportunities and create substantial shareholder value in the
process.
Even better, with a diversified portfolio that can create
several revenue streams, investors benefit from growth from a
company not reliant on a single product or platform. Hence, it’s
the sum of its parts that makes PAOG stock an attractive
proposition. And while its 220% increase since September and 108%
spike in October thus far is impressive, it may be appropriate to
expect more growth in the coming days, weeks, and quarters. After
all, in the past 24-hours, PAOG was transformed from a development
stage company to a commercial one. And that, in any market, is a
huge deal.
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Source - https://www.benzinga.com/pressreleases/21/10/ab23435209/pao-group-inc-stock-gains-220-since-september-announces-commercial-launch-of-first-cbd-nutraceuti
Other stocks on the move include
PUGE and
TONR.
SOURCE: pennymillions
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