Market participants looking for promising speculative small-cap opportunities with sizeable potential to make waves in large and growing addressable market opportunities may want to acquaint themselves with Stemsation International Inc (OTCMKTS:STSN).
According to its materials, the company develops, manufactures and distributes natural wellness products that support the stem cell and endocannabinoid systems in the human body through using a direct selling model in which Independent Wellness Advocates advertise and sell its products directly to consumers.
That last part is the key: this is a direct sales model in the nutraceutical wellness space – think: Avon or Amway, but with natural health products.
Shares of STSN have been on fire in the past 2-3 weeks, up as much as 350% at one point. That rally has consolidated and now pulled back in a seemingly constructive manner, with key moving averages now trailing and pointing higher and some important support levels in play.
The explosion off the lows looks to be about the company’s continued progress on establishing significant commercial stage operations and topline growth with the successful launch of its second major product, a fast-acting and exclusive formula named ProStem PSP for joint and muscle health, which is now reportedly in U.S. distribution and available for sale through the company’s network of Independent Wellness Advocates.
Pushing the Boundaries
To help press the narrative, the company also just made a critical announcement: Its products are now available in 30 markets (the 27 EU markets, the UK, the US and Puerto Rico). According to that release, the U.S. and European markets contribute $70 billion and $15 billion respectively to the $290 billion global market for nutraceuticals according to Fortune Business Insights.
StemSation is even accommodating the international hurdles, supporting online sales in multiple languages and at least four different currencies. StemSation even boasted that it has a customer service army ready to help with fluency in all of its serviced linguistic zones (English, Spanish, French and Bulgarian) and is apparently dead set on expanding into more linguistic zones.
Ray C. Carter, Jr., CEO of StemSation stated “we are pleased that we are now able to offer our products in multiple markets, languages and currencies through our online platform, during our very first year of business. We plan to enter even more markets in the second half of 2020 while adding at least two more languages and currencies. Our investment in a global infrastructure and localized, consumer-friendly support will bring us many loyal, long-term customers over time in this fast-growing global market, projected to reach $486 billion by 2026.”
All Around the World the Same Song
The key here is to understand that the direct sales model can work anywhere. People are people. Some people will want the products. Other people will want to make some extra money – especially in a world where we have seen over 40 million newly unemployed in the US alone over the past couple months.
Hence, STSN is clearly pushing to expand beyond the limitations of the US or North American market, and moving out to address the total market, which, according to the company is as large as $290 billion globally (for nutraceuticals).
Hence, there is a clear advantage to setting up that direct sales machine to be able to leap gracefully over currency and linguistic barriers to access more and more of the massive total addressable market.