Caduceus Software Systems Corp (OTCMKTS:CSOC) has been one of the most productive stocks for investors in the public markets so far in 2021, rising more than 1,500% in a steady trend so far this year. But the action hasn’t come in a single spike.
The bullish trend in CSOC over the past 8 months has been steady, with action coming on strong and consistent volume, and support coming in repeatedly at key range levels, the log trendline, and the rising 50-day moving average.
That’s a nice technical trending profile, and it suggests big things going on under the surface at the company.
A deeper look confirms that idea: CSOC management has been getting the company back in fiscal shape, current on filings, lean in both balance sheet and cap table terms, and in play in a strong industry with growing customer orders as a revenue-producing pet food brand with an established presence.
A Deep Look
The US pet food market drives over $30 billion in annual sales as has room to grow, especially on the ecommerce side. The global pet food market has grown by more than 50% over the past decade and now exceeds $90 billion in annual sales.
Pet products also represent a true non-cyclical “staple” with very little vulnerability to economic downturns. This is also a growing market.
That combination – growth and recession-proof stability – is a rarity in the market, which makes stocks in the space extra attractive to institutional players.
Caduceus Software Systems Corp (OTCMKTS:CSOC) is a brand new entrant in the space following its acquisition of McLovin’s Pet Food, Inc. (mclovinspetfood.com), a California registered revenue-generating company active in the pet food industry.
McLovin’s is already established and has continued to show growth, securing a recent purchase order from Kehe Distributors LLC, which was followed by an exclusive distribution agreement with Phillips Pet Food & Supplies.
“Phillips’ vast retail network is significant and represents half the battle to many pet product producers/suppliers. McLovin’s is proud and honored to be supported by Phillips in this way. Through Phillips, our products — both food and accessories — will soon be in thousands of stores across the country and in turn to millions of pet owner’s homes. The flow of the first batch of products under this agreement has already begun.” says David Ji, CEO of McLovin’s.
The company also recently completed a buyback and cancellation of 1,608,000,000 shares from its total outstanding common stock pool, restructured a major convertible note to reduce dilution risk, and got fully current with its filings.
In other words, management and the board appear to have their ducks in a row and look to have turned CSOC back into a shareholder-friendly stock with real commercial growth prospects.
Checking the Chart
As this turnaround has progressed – as noted above – CSOC shares have been powering higher in a steady bullish trend.
Caduceus Software Systems Corp (OTCMKTS:CSOC) looks like a staircase over that period, with rising bases giving way to successive breakouts.
The trendline and the 50-day MA have been pointing the way higher, providing key support repeatedly as the trend rolls on.
The other productive factor in this mix has been a steady diet of shorts coming in and getting blazed out the top of patterns in big squeezes. People keep trying to bet against CSOC and getting burned in the process.
According to OTCShortReport.com, CSOC has seen more than 50% of its volume come via short-side transactions on more than half of its past 20 trading sessions. That suggests the potential for recent history to continue repeating itself.