Why Puration Inc (OTCMKTS:
PURA) Is Rated A Buy
April 22, 2019 -- InvestorsHub NewsWire -- By Jim
Bloom -- Posted on April 18, 2019
Record-breaking sales growth could as well be the catalyst that
will reinvigorate Puration Inc
(OTCMKTS:
PURA) market sentiments and prospects. The
company reporting 350% year-over-year growth in sales underscores
underlying growth that should continue to affirm long-term
prospects.
PURA CATALYSTS AND SHARE PRICE ANALYSIS
A confirmation that the company is increasingly outgrowing its
production capacity also looks set to prop the stock’s market
sentiments. The company has also confirmed plans to expand its
bottling plant capacity as it moves to innovate new beverages to
cater to growing market demand.
In March, Puration signed new product orders paving the way for
the company to attain its $5 million revenue goal. Growing demand
from notable and substantial distributors also points to what could
turn out to be another record-breaking year on sales growth.
While recent developments reflect a company in a phase of robust
growth, the stock price is yet to reflect the same. The stock price
has been in consolidation mode after a plunge from highs of $0.20
late last year.
Puration has since resorted to trading in a tight trading range
of between $0.13 and $0.07 a share. The $0.07 mark has
emerged as a critical support level from where the stock has
continued to bounce back on pullbacks. Above the critical technical
level, the stock remains well positioned to make a run for 52-week
highs of $0.25.
Conversely, a violation of the critical support level could
result in the acceleration of the sell-off wave plunging the stock
back to 52-week lows.
However, Puration remains well supported for further upside
action given the solid underlying fundamentals that affirm the
company’s growth metrics and long-term prospects.
WHAT DOES PURATION DO?
Puration is a company engaged in the development, production,
and distribution of water purification products. Its flagship
purification systems include personal water filter bottles as well
as sports bottles and collapsible water pouches. EVERx CBD Sports,
is the company’s lead CBD infused beverage, that continues to
account for most of the sales.
RECORD REVENUES
Puration is a potential breakout play after delivering record
sales numbers for 2018. The financial statement indicates the
company generated $1.2 million in revenue, representing a 350% year
over year increase. Net profit for the full year totaled
$500,000.
The company attributes revenue growth to strong demand for the
EVERx CBD Sports beverage. The management is projecting another
record-breaking year thanks to a strategic partnership with Kali
Extracts, expected to lead to further beverage diversification.
Puration has also confirmed it is working closely with Alkane
Holdings to expand its production capacity as it seeks to keep up
with the growing demand. The company has also inked a strategic
alliance with North American Cannabis Holdings to expand
distribution channels as it seeks to accelerate sales growth and
meet wholesale demand.
INCREASING PRODUCTION CAPACITY
Growing demand for the company’s flagship EVERx CBD reports
Water has prompted Puration to move and increase its production
capacity. Chief Executive Officer Brian Shibley has confirmed plans
to acquire the company’s current bottler. The acquisition will
result in the expansion of the bottler’s production capacity to
address growing demand.
“As we continue to innovate new beverages, a key bottling
partner or in-house capacity it’s essential. Be it an acquisition
or a new build out, the plan will be finalized this month, and we
will proceed quickly to expand production capacity one way or
another,” explained Mr.
Shibley.
In addition to pursuing acquisition to strengthen production
capacity further and grow market share, Puration is slowly becoming
an acquisition target for other companies. The Chief Executive has
confirmed growing interest from a beverage industry player and one
from a competitor. The acquisition charter could go a long way in
propping the stock’s sentiments in the market.
BOTTOM LINE
Puration share price does not reflect the company’s tremendous
potential in view of recent developments and long-term prospects.
As it stands, the stock is a potential bounce-back play as
underlying fundamentals, and recent developments look set to
strengthen the stock’s market sentiments.
Goldman Small Cap Research cap initiating coverage of the stock
with a ‘buy’ rating all but underscores Puration potential bounce
back on investors taking note. The equity firm maintains a $0.25
share price target with a noted potential upside of $0.35.
Puration is an exciting cannabis play as it is currently trading
at a discount with tremendous potential to edge higher.
We will be updating our subscribers as soon as we know
more. For the latest updates on PURA, sign up below!
Disclosure: We have no position in PURA and have not been
compensated for this article.
Original Source: https://insiderfinancial.com/puration-inc-otcmktspura-rated-buy
SOURCE: Jim Bloom
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