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After soaring more than 800% over the past few weeks, Cosmos Holdings Inc. (NASDAQ: COSM) is considered to be one of this year’s hottest short squeeze plays. As an international healthcare group, COSM is mainly focused on identifying, acquiring, developing, and commercializing different medications. While the company’s business line could prove to be profitable in the future, COSM stock has been witnessing rising short selling activity over the past months – sending the stock to new all-time lows. With the stock gaining investors’ attention thanks to its short squeeze potential, COSM stock could be one to watch over the coming weeks.
COSM Stock News
Operating through 3 subsidiaries in Greece and the UK, COSM specializes in the wholesale of pharmaceutical products across Europe. To facilitate its business, COSM has a wide network of more than 160 clients and vendors throughout Europe, Vietnam, and the UAE. Through this network, COSM is able to develop and distribute its own proprietary line of nutraceuticals, branded generics, and OTC pharmaceuticals. At the same time, COSM has its own distribution network that allows the company to provide local markets with its products as well as promoting its own proprietary lines. Moreover, COSM has a number of strategic relationships and market synergies with other global pharma companies to facilitate the production of its products. Thanks to this structure, COSM stock could be a profitable long-term hold as the company continues expanding its business.
With this in mind, COSM currently has two proprietary premium nutraceutical brands – Mediterranation and Sky Premium Life. These brands are high-quality nutritional supplements brands including a wide range of vitamins, minerals, herbs, and unique formulas. Given that the European nutraceutical market is expected to pass $100 billion by 2027, COSM’s products could position the company for substantial growth in the future as it continues to expand its nutraceuticals’ global reach.
On that note, COSM entered a partnership with airline company Iberia to offer its Sky Premium Life brand through Ronda in-flight magazine. In this way, more than 10 million annual passengers would have access to COSM’s products which could be reflected in the company’s revenues in the future. Given that Ronda’s readership has a strong purchasing power with 81% above the age of 35 and 72% having higher education degrees, COSM could witness a major spike in sales thanks to this deal.
Looking to expand its products’ reach globally, COSM entered into an LOI with Smart for Life, Inc. (NASDAQ: SMFL) for a strategic co-venture agreement. According to this deal, both companies are set to cross market each other’s products in their respective markets. In this way, SMFL could benefit from COSM’s distribution capabilities in Europe to bolster its revenues. Meanwhile, this deal could allow COSM to realize substantial revenues from its proprietary brands – Sky Premium Life and Mediterranation – by distributing them in the US. Considering the growing interest in nutraceuticals from US citizens following the pandemic, COSM could realize record sales from its brands.
In addition to expanding into new markets, COSM is looking to enter new segments in the healthcare industry – especially the telehealth market. For this reason, COSM entered into an LOI with American International Holdings Corp (OTC: AMIH) to acquire its subsidiary – ZipDoctor Inc. As a DTC subscription-based telehealth platform, ZipDoctor provides its customers affordable and unlimited access to certified physicians and licensed mental and behavioral health counselors and therapists. Given the potential of this platform, COSM intends to expand its services to include the ability to speak to a doctor to seek additional treatments like men’s and women’s health and weight loss. Since this acquisition is yet to be finalized, COSM stock could witness a run when the acquisition is completed.
At the same time, COSM is working to expand its product portfolio as it entered the development phase for CCX0722 for obesity and weight management in collaboration with Cloudpharm. This treatment is based on the effectiveness of biocompatible 3D spatial fillers from natural ingredients. On that note, spatial fillers are able to absorb and retain large amounts of water and biological fluids. Based on this, administration of CCX0722 could reduce food intake as it is able to increase satiety and reduce appetite. Considering the unmet need for such a product, CCX0722 could witness high demand once it is launched into the market. However, this step could take significant time as COSM plans to initiate clinical intervention in Q4 2023. With the company looking to penetrate this underserved market, COSM stock could be poised for a significant boost in its PPS in the long-term.
Meanwhile, COSM also has agreements to market and distribute other products in select locations. With this in mind, the company recently entered into an agreement to market and distribute Nickelodeon’s SpongeBob and PAW Patrol kids’ vitamins in Greece and Cyprus. Considering the popularity of these characters in Greece and Cyprus, COSM is witnessing high demand for these products from large chain retailers and pharmacies. In this way, COSM is aiming for these products to reach 11 thousand pharmacies and 120 wholesalers in Greece in addition to 780 pharmacies in Cyprus. Given the major marketing support from Nickelodeon, this deal could position COSM to receive a major boost in revenues in the coming quarters.
Despite the company’s promising fundamentals, COSM stock is gaining momentum thanks to its ongoing short squeeze which has seen the stock climb from $.07 to nearly $.85 in the span of 3 trading weeks. With this in mind, COSM remains witnessing an increasing short selling activity with its short interest rate at 16% with 20% of the float on loan. While these numbers could be insignificant for a short squeeze to occur, COSM’s cost to borrow is extremely high at 205% and there are no shares available to short. As a result, COSM stock has the potential to further run in the coming weeks as more investors are entering into the stock.
Considering the stock’s strong price movement lately, many investors are bullish COSM stock could break through $1 and regain compliance with the NASDAQ listing rules as the stock has been trading below $1 since April. Since the company has until January 23, 2023 to regain compliance with listing requirements, many investors are confident COSM stock will continue trading on the NASDAQ for the foreseeable future. On that note, COSM is holding its annual shareholders meeting on December 2 where shareholders will vote on a proposal providing discretion to the BOD to effect a reverse split if needed to regain compliance with the NASDAQ rules.
However, COSM could have major news on the horizon that could help the stock regain compliance without effecting a reverse split. This conviction could be thanks to the recent insider activity as the company’s CEO Grigorios Siokas purchased 12.5 million shares back in October in addition to 801.2 thousand shares this month. As these transactions highlight Siokas’ confidence in the company’s future prospects, COSM stock could be one to watch closely for a continuation of its current run.
COSM Stock Financials
Looking into COSM’s Q3 financials, the company has $45.6 million in assets – including $312.3 thousand in cash as well as $25.2 million in accounts receivable. In Q3, COSM successfully reduced its liabilities to $40.4 million compared to $45 million at the beginning of the year. This decline is mainly fueled by the company reducing its long-term notes payable to $1 million compared to $12.3 million. Meanwhile, COSM realized $12 million in revenues – declining from $13.5 million a year ago. As for operating costs, the company reported $2.1 million – representing a decrease from $3.2 million in the same year-ago-period. In this way, COSM reported a net loss of $1.9 million.
@ChaseMacTrades is excited over the gains provided by COSM stock over the past weeks.
@KingShard1 is bullish COSM stock could reach $1 soon in light of the CEO purchasing shares.
COSM stock is currently trading at $.7725 and shows supports near .5850, .4232, and .2895. Meanwhile, the stock shows resistances near .8437 and 1.1657. As COSM failed to break through its resistance twice recently, the stock could be poised for a pullback as profit taking could take place thanks to the stock’s impressive run over the past weeks. In that case, COSM could drop near its $.58 support which could be an ideal entry for bullish investors as the stock could soar in the coming weeks thanks to the bullish sentiment surrounding it.
Accumulation is trending downwards as investors could be taking profits thanks to the stock’s parabolic run. However, the MACD is bullish to the upside. The RSI is at 75 indicating that COSM stock is currently oversold. In light of this, bullish investors could wait for the RSI to regulate for a better entry point on COSM stock. As for its share structure, COSM has an OS of 83.8 million and a float of 58.5 million.
COSM Stock Forecast
As the company is looking to regain compliance with the NASDAQ listing requirements, COSM is one to watch as it could further run in the coming weeks given the momentum it is witnessing. Considering the stock’s significantly high cost to borrow and rising short interest, COSM stock could soar when short sellers have to cover their positions. Meanwhile, COSM could be considered a long-term investment thanks to the company’s constant efforts to expand into new markets and new segments. With the company now entering the development stage of its obesity product, COSM could be poised for long-term growth given that this segment is extremely underserved. In light of this, COSM stock could be one to buy now given its short-term and long-term potential.
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