Stocks closed lower today, giving up sharp gains from earlier in the day in a wild session that saw the Dow Jones Industrial Average travel more than 900 points. The S&P 500 closed in correction territory, down 10 percent from its recent high.
Despite the latest gloom and doom, it is our job to identify the next great bullish opportunity for our members.
One such opportunity is EDNT (Edison Nation Inc.).
Just like our pick from last Thursday, we believe that this vertically integrated, full-service, product development and manufacturing company could be the perfect opportunity for members looking to secure some quick profits with a low-float Nasdaq listed company well positioned for growth.
Immediate Bullish Catalysts for EDNT: Low-float of just 825.59k Growing revenue (Q/Q) Q2 2018 Revenues & Work in Process Collectively Increased 21% to 5.6M Year-Over-Year 6.5M in gross proceeds from April 2018 IPO Partners with several Fortune 500 companies such as, Walmart, Target, Rite-Aid, Disney, Home Depot, and Amazon High insider ownership About Edison Nation
Edison Nation, Inc. is a vertically integrated innovation aggregation and full-service product development and manufacturing company, offering innovation sourcing, design, sales, fulfillment and shipping services. Edison Nation's model is to provide a risk mitigated platform that connects innovators with companies to bring new products to market.
Company Highlights
Edison Nation, Inc. (Edison Nation) is a vertically integrated, full-service, product development and manufacturing company (design, manufacture, sales & fulfillment) Edison Nation’s business provides a low-cost R&D platform to test consumer interest in new productsvia innovation searches, disintermediating the traditional high fixed-cost R&D model (average cost to develop and test a product is $25,000) Their successfully licensed products on behalf of their inventors have generated +250M in sales Completed Reg A+ IPO of common stock and listed on NASDAQ in May 2018, raising 6.5M in gross proceeds at 5.00/share. Experienced leadership team with high insider ownership (~47%) What does Edison Nation Do?
Since inception, Edison Nation has invested ~11M to create a propriety open innovation platform, allowing inventors to safely and securely submit their ideas to be evaluated for various commercialization paths from licensing to, most recently, crowd funding.
Typical crowd funding product development cycle:
Edison Nation’s team of product designers and engineers then produce a ready for production prototype, and produce media in-house to launch a crowd funding campaign. If a campaign is successful they will market the product in the “aftermarket” on sites such as Amazon & Jet Products are generally manufactured in China with factories (we have 10+ year relationships, generally shipping within 4-6 weeks from order) Growth Opportunities:
Utilizing the Edison Nation platform to organically source innovative ideas, bringing them to market through their low-risk crowd funding strategy (strong engine for future ideas to bring to market)
Continued growth of licensed product manufacturing through Fortune 500 partners such as Disney, Marvel, and Universal Studios
Acquisition of promising products/micro-brands using a combination of cash and stock
Market Outlook
Consumer Buying Habits are Shifting
The “retail apocalypse” is continuing as consumer purchasing habits trend towards online purchases.
The e-commerce market is expected to grow at a 13% CAGR to 682B by 2020.
Consumers are increasingly innovation driven with a need for instant gratification, as consumer desire for next-generation products surpasses the need for brand recognition.
The trend towards crowd funding (i.e. Kickstarter)is disrupting the legacy product development cycle through pre-ordering of products – financing product development while reducing sales risk.
Shifting consumer trends driving the growth of market places (i.e. Amazon) and crowd funding sites provide unique tailwinds for EDNT's growth.
Technical Analysis
As most of you know, we love low-float picks like this one because of their potential for huge single-session gains.
EDNT is looking extremely attractive at our alert price of $5.80.
We've watched EDNT swing between $5 and $7 several times over the past few weeks, which is why we believe a single-day move of over +20% is very possible
EDNT has yet to drop below $5.00 over the past 52-weeks.
Traders who start their positions at out alert price could see themselves in the perfect low-risk/high-reward scenario.
It is currently trading well below its analyst price target of $4.47, and its 52-week high of $7.30.
EDNT has traded as high as $7.83.
A run-up back to that 52-week high would show traders gains of up to +35%!
We believe that EDNT has the potential to be one of the biggest gainers on the Nasdaq.
As such, we are urging all members to act fast, start their research, and make sure to add EDNT to the top of their watchlist
(*Remember to use a Stop-Loss Order or basic Limit Order to protect your gains, as well as limit possible losses.)
Best Regards,
The TopMarketGainers Team
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