One of the companies to benefit from the pandemic has been PlantX Life Inc. (OTCQB: PLTXF). An e-commerce company that specializes in plant-based products, PLTXF offers over 10,000 products ranging from foods to cosmetics, pet-foods, and plants. Thanks to the company’s digital format, PlantX captured the pandemic fueled demand for online food and plant delivery. The stock has captured investors’ interests due to its expansionary plans and loyal, growing following. This has led to an uptick in the stock after notable backsliding from January’s high of $1.66. Increasing 67% from its low of $.1790 three days ago, PLTXF is one of the penny stocks to watch. 

Catalysts

Branding itself as a “one-stop shop for everything plant-based”, the company has expanded beyond the digital to draw in consumers through its brick-and-mortar locations in San Diego, Tel Aviv, and Squamish, B.C. It has also secured space for PlantX products on the shelves of Walmart Canada Marketplace and Hudson’s Bay Marketplace, gaining exposure for the company’s brand. 

Meanwhile, PlantX’s successful delivery system was facilitated by its June acquisition of certain assets belonging to long-time partner – LIV Marketplace. Previously the exclusive online fulfilment partner and retail distributor of PlantX’s products, LIV Marketplace’s merchandising and delivery role was taken on by PlantX as a “strategic decision” meant to meet the company’s significant growth. Removing its external vendor has increased the company’s operational success while minimizing potential risks, opening the door for further expansion.  

Adept at media marketing and brand awareness, PlantX has exerted significant effort since April to establish a community of like-minded consumers around its brand. PlantX’s YouTube series, “Taste This!” shows the company’s interest in testing new waters while pointedly featuring its own products and services. As of today, the channel has 1,459,032 views and a wide variety of videos. 

One of the services advertised through its channel is the company’s recently launched PlantXpress membership. Capitalizing on its loyal following, the subscription offers discounts, access to special events, and free shipping on certain orders. In exchange, the company is developing a recurring revenue stream through its $24.99 monthly subscription fees. Considering the success subscription based platforms have had amongst millennials, the PlantXpress membership shows notable revenue generating potential.

Most recently, PlantX has developed relationships with notable athletes like tennis star Venus Williams, Chicago Bears quarterback Justin Fields, and professional mountain biker Remy Metailler. Clearly, having these legendary athletes advocate for PlantX as official brand ambassadors will have an instantaneous effect on the brand as public awareness spreads rapidly. 

Media Sentiment

Although PLTXF has been underground for a while, OTC FinTwit is starting to notice the stock’s promising activity. Noting the stock’s break from recent lows, @StockStar319 shared the news with his 11.7K followers. While FinTwit influencer, @BMoeKnows, shows the power a well-placed brand ambassador can have on a stock’s value. In light of this, PLTXF is one of the penny stocks to watch.  

Technical Analysis

penny stocks to watch PLTXF chart

Breaking out of its recent lows, PLTXF shows a recent support at .2903 after passing its previous resistance of .2394. Trading at $.3150, the stock is currently testing its resistance with the potential to hit its next barrier at .3245 and .3490 depending on the runup. Accumulation had dipped in recent weeks but is climbing in parallel with the RSI. Currently at 74.19, the RSI overshot yesterday as the stock became significantly overbought reaching 82.10 before briefly correcting to 69.25. MACD has climbed rapidly through the upside since a bullish crossover on the 30th and is showing no sign of another crossover.

Financially PLTXF is fundamentally sound having made millions monthly within its first 5 months of launching. As of June 30th, the company reported $14.9 million in working capital – showing how undervalued the stock is considering its market capitalization of 38.2 million. PlantX’s management has highlighted its plans to increase cash reserves in the coming year in order to achieve its future plans. With a current strategy of cost control while “pursuing opportunities within various market sectors”, the company has already identified and evaluated potential sources of funds for its execution.

Should you Buy?

With a reasonably low float of 90 million, strong fundamentals, an expanding enterprise, and healthy sector growth, PLTXF shows notable potential. Many investors are speculating that a breakout is on the horizon given the high volume, but PLTXF shows promise as a long-term investment as well. Plant-based foods have seen considerable interest in recent years and this company’s strong e-commerce reputation will facilitate its innovation into other sectors as well. Currently valued at $.3150, the stock has the potential for a major runup making PLTXF one of the penny stocks to watch this week. If momentum continues, the stock may reach $.40 in the coming weeks.

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