Stocks to Watch - Conversion Labs

We are all about investing in some great up-and-coming stocks at Zentrader. This is the first in a series where I’ll highlight some great stocks that I feel are ready to break out based on either fundamentals, technical analysis, or both.

Today, we’ll be looking at the rapidly growing health and wellness focused e-commerce company Conversion Labs (CVLB).

First Things First

As we have discussed over and over again, investing in individual stocks is not for everyone.  Make sure you are investing with money you can afford to lose if things go south. That being said, we all know that investing in individual stocks can be very lucrative if you pick the right ones.  There is no better way to beat the average market return than taking increased risk for the potential of improved returns!  Fortunes have been made in the stock market by taking small, calculated risks on fantastic companies!

Background on Conversion Labs – CVLB

Conversion Labs (CVLB) is an emerging leader in technology driven healthcare and telemedicine.  They apply their direct response marketing expertise to healthcare and provide a convenient, cost-effective and smarter way for consumers to access high quality OTC products and prescription medications.

Here are a couple quick facts about Conversion Labs:

  • CVLB is publicly traded on the OTCQB (middle tier over the counter “OTC” market)
  • Served over 850 million ad impressions over the past 2 years
  • Licensed for online Rx and physician consults in all 50 states
  • Ranked $164 on Deloitte’s 2018 Technology Fast 500 with 608% growth!

The reason why investing in Conversion Labs is so exciting is they present an end-to-end telehealth customer acquisition model:

Conversion Labs - End-to-End telehealth customer acquisition model

Conversion Labs – End-to-End telehealth customer acquisition modelWith the costs of healthcare rising due to an aging population and poor public policy, more and more customers are looking for cost effective solutions.  As folks shift more into the Health Savings Account (HSA) model through their employer offered healthcare, they are also looking for lower-cost options since they are paying out of pocket.  Today’s customers are also less willing to wait in a doctor’s office and are more trusting of technology and online services.

Did you know that in a recent survey, 77% of patients prefer a physician who offers telemedicine?  This must be the reason that the global online pharmacy market is expected to triple over the next five years (from $42B to $107B by 2025)!  Conversion Labs is poised to capture revenue from these potential new customers as we see these large global shifts in patient demographics.

Fundamental Analysis of Conversion Labs – CVLB

Exciting things are happening with Conversion Labs.  In June 2019, Conversion Labs entered the telemedicine space with a strategic join venture with GoGoMeds.com, a large online pharmacy.  They also just announced a formal launch of their first telemedicine brand, Rex MD.

Here are some fundamentals for you to review:

  • Has a $14 million revenue run-rate and growing
  • Showing 32% YoY revenue growth
  • Reached 93% revenue CAGR (2015 – 2019 est)
  • Approx 90 million shares outstanding (fully diluted)
  • Current valuation of just $6.86 million
  • Every round of money which Conversion Labs has raised in the last 18 months has been at $0.23/share – this is unheard!
  • 52-week stock trading range: $0.10 – $0.29

You read that correctly – currently Conversion Labs is valued and less than $7 million when their annual revenue for 2019 is estimated at $12 million!  CVLB just closed recently at $0.15 per share.  These fundamentals look great, and honestly I am quite surprised we are seeing funding rounds come it at a premium to market share price.  That is a very strong message which investors are sending.  Now may be the perfect time to take a long position!

Note – Many of these facts were pulled from the following investor presentation.  Give it a look and form your own opinion.

Technical Analysis of Conversion Labs – CVLB

We’ve established that the fundamentals are strong for Conversion Labs.  I always like to take a look at technical analysis as well to see if this can provide investment clues.  Below, you will see a graph of the past 5-years of Conversion Labs.  As you can see, prices have been a bit range bound between $0.35 and $0.08.  We did see a huge pop all the way to $0.95 back in March of 2017.  Wouldn’t another one of those be great :-).

You will notice that there is some REAL support at around the $0.12 level which is helping to prop this stock up.  Currently, the stock is trading around the 50-day moving average.  Both of these facts tell us that now would likely be a good time to buy as the stock is not currently trading at a premium to historic levels.

We would say this stock is a strong buy at the $0.12 level based on technical analysis.  We have seen those prices just over the past couple of weeks, so now may be your opportunity if you have made the decision to go long.

Conversion Labs - Stock Price History

Conversion Labs – Stock Price History

Final Thoughts

We are excited to promote Conversion Labs as one of our first “Stocks to Watch” here on Zentrader.  CVLB has positioned itself in the exciting telemedicine sector with is growing at a considerable rate, has several new products and services in its pipeline, shows very strong financials, and is trading at historically low levels.  This stock is screaming a BUY in our opinion.

Zentrader is taking a LONG position in CVLB with limit orders around $0.12 per share.  So, you could say that this entire article is a bit biased since we are jumping in on this stock :-).  Please keep in mind we are NOT certified investment advisors, and you absolutely should do your own research before investing in this or any stock.

Disclaimers

Please note the following as you read this article:

  1. The author of this post may have a current long position in this security.  This may influence the author’s opinion of this stock.
  2. The article is for educational purposes only, and does not constitute a recommendation to buy or sell any specific security.  Please do your own research and due diligence.
  3. Past stock market and security performance does not have any bearing on future performance.
  4. The author of this article may have been compensated a sum of money to produce this post.
  5. Please only invest with money you can afford to lose.

 

 

 

 

 

 

 

 

 

Full disclosure : This is an advertisement and I am currently long this position. We are not a licensed broker-dealer and do not publish investment advice and remind readers that investing, especially in penny stocks, involves considerable risk. Although these stocks can offer big upside, they can also lose 100% of their value. We encourages all readers to carefully review the SEC filings of any issuers we cover and consult with an investment professional before making any investment decisions.

By Charlie Brown

The web has become a complicated place. To survive in this competitive scenario, you need to continually update your services and be aware of what new technologies your opponent is using. It is evident that you will face different issues while designing and optimizing your web page. Some of the problems can be marketing related, such as recognizing a potential client. You will also come across functional issues such as designing the site for selling a product, or for informational purpose. In deciding all these parameters, you must not forget about the main focus – the potential visitors to your site.

There is a need to understand the process of conversion from potential visitors to clients. A lot of these accessibility test service provider are alert in noticing and implementing necessary steps. Visitors can be from any ethnicity, age group, location, and so on. In this technologically advanced world where everyone uses computers, the visitors can be a pool of geriatric population too. Also, potential clients can be physically challenged people. Therefore, to overcome all these challenges, running different types of accessibility tests fulfills the needs of all kinds of visitors.

There are different types of testing, designed for specific purposes. Some of the key types are explained below:

Functional Testing
(more…)

30
Sep

By Marie Miguel

If you suffer from anxiety or panic attacks, you are definitely not alone. In fact, about 40 million Americans have an anxiety disorder. From social anxiety to generalized anxiety disorder to post- traumatic stress disorder (PTSD), these illnesses are becoming more common in the United States. A highly convenient and accessible way to manage your anxiety is to talk to a professional online, such as a therapist or counselor from an online service like BetterHelp.com. However, here are some tips to help you in your day-to-day that you can start immediately.

Just Breathe

Sometimes it is really just that easy. Take a deep breath. Let it out. Repeat. In fact, focusing on breathing is a form of meditation, which we know has been an effective treatment for anxiety for years. Try it. It may just work.

Count to 10

Yes, counting can really help you when you are suffering from anxiety. Similar to meditation, just concentrating on something besides your anxiety can help. By focusing on counting, you allow your mind to let go of those other annoying thoughts that are causing the anxiety. And if counting to 10 does not work for you, try counting to 20.

Take a Hike

You probably already know that exercise is good for you. Not only physically but mentally because it increases the endorphins, which are the hormones that make you feel good. Getting outside and walking is even better for you because the sunshine is also good for you (increases Vitamin D) and the fresh air is even better.

You Are What You Eat

Getting the right amount of vitamins and not eating junk food is essential to physical and mental health. You cannot fill up on caffeinated beverages and fast food if you want to feel better. Fats, cholesterol, caffeine, and alcohol are all recommended to be avoided by those who have anxiety. Instead, try some fruit or even a piece of dark chocolate.

Get Healthy
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By Charlie Brown:

During day trading, the investor buys and sells the stocks multiple times per day to leverage the small volatilities of the pricing of the assets. Becoming a day trader is a lucrative career opportunity for many job holders and freelancers. Since it does not involve a physical location or time-bound activities, day trading is rapidly growing in popularity as a career option for the youth of the country.

Beginners should remember that all liquid stocks are suitable for day trading since they are cheaper than the other stocks. The most suited stocks for day-trading include the ones that exhibit higher levels of volatility. Day trading is especially popular due to its high flexibility and accessibility. Several brokerages allow day trading, and you can conduct it from virtually anywhere, including your home or the gym sauna. It is a lucrative career opportunity for new traders, who want to adopt day trading as their primary career option.

How should you trade?

Learning to day trade is not as tricky as many make it out to be. When you have the right sources of information, experienced guide and expert advice to fall back on, day trading can quickly turn into your money-making vocation.

Here are six actionable tips from the most prosperous day traders –

i. Forget emotional attachment to stocks

While day trading, it is impractical to become attached to a particular stock. The only way to master day trading is by observing the patterns in the price fluctuations of the stocks using objective technical analysis. For example – when you make $1000 one day by trading Apple stocks (NVDA), don’t become attached to it. The next day, some lesser-known stocks might bring you a fortune that you may have never expected.

Similarly, there is no need to believe that a particular stock bears a curse since it has cost you hundreds or thousands of dollars.

ii. Trade with “disposable” money

Begin day trading with money you can afford to lose. It is essential to consider potential losses, even before you take your first step. It is the only way you can restrict the amount you invest.

Never indulge more than you can afford to lose. (more…)