YGYI picks up new coverage and higher price target.
SeeThruEquity Initiates Research Coverage on Youngevity International, Inc. with Target Price of $0.49
Sep 03, 2014 (ACCESSWIRE via COMTEX) -- New York, NY / ACCESSWIRE / September 3, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has initiated coverage on Youngevity International, Inc. (OTCQX: YGYI), a fast-growing, innovative, multi-dimensional company that is a global direct marketer of nutritional and lifestyle products and also a vertically-integrated producer of gourmet coffees for the commercial, retail and direct sales channels.
Ajay Tandon, CEO of SeeThruEquity commented, "Youngevity's management has grown the company both organically, and through opportunistic acquisitions and marketing agreements. The company is always looking for new and innovative products that fit with its philosophy of "emotional well-being." Youngevity has taken a bold new step with its newest venture, the state-of-the-art MK Collaborative e-tailing boutique website. With over 1000 high-quality nutritional and lifestyle products sold through a global consumer cloud of international direct selling networks, which includes over 120,000 distributors and customers, Youngevity is creating a community similar to online retail giant Amazon.com. Youngevity believes it can exploit a competitive advantage by integrating high tech e-commerce with a highly personalized touch from its network of distributors. We are initiating coverage with a target price of $0.49."
Additional investment highlights are as follows:
- Rapidly expanding global direct sales network. Youngevity offers more than 1000 high-quality nutritional and lifestyle products through a global "consumer cloud" of international direct selling networks, which includes over 120,000 distributors and customers. Initially focused on sales of health, beauty and home care products from its Youngevity(R) Essential Life Sciences division, the company has been strategically expanding into additional categories that fit under its "emotional well-being" philosophy. Youngevity's flagship Nutritional Supplements include its Healthy Start Pak™, which includes Beyond Tangy Tangerine(R) (a multivitamin/mineral/amino acid supplement), EFA Plus(TM) (an essential fatty acid supplement), and Osteo-fx Plus(TM) (a bone and joint health supplement). In 2Q14, Youngevity reported $32.7mn in net revenue, a 56.6% increase over 2Q13 and the company's eight straight quarter of profitability.
- Strategic acquisitions fuel growth, diversify product offerings. Youngevity has been very aggressive in expanding into new and complementary product lines, having completed over 10 acquisitions and/or marketing alliances since 2010. Most recently, in July 2014, Youngevity launched the state-of-the-art MK Collaborative e-tailing boutique website. Marisa Kenson, an acclaimed and talented celebrity fashion designer, designed all of the collections in MK Collaborative, hand selecting the design team, stylists, and multimedia marketers that make up MK Collaborative. In 1H14, Youngevity also acquired certain assets and assumed certain liabilities of Good Herbs, Inc., a traditional natural herbal supplements company, and Beyond Organic, LLC, a vertically integrated organic food and beverage company. These acquisitions have helped Youngevity continue to expand its broad range of product offerings and bolstered already impressive top line growth.
- CLR Roasters coffee segment also investing for expansion. Youngevity has also been putting additional resources into its coffee segment, which accounts for approximately 12% of company revenues. CLR produces a variety of company owned retail and private label brands which are sold to traditional brick and mortar, hospitality and cruise lines, among other end markets. Youngevity also offers its unique JavaFit Brand of fortified coffee through its direct sales network. In August 2014, Youngevity announced that it will purchase K-Cup manufacturing equipment in order to enter that rapidly growing segment of the coffee market. In May 2014, CLR Roasters acquired a coffee plantation and processing facility located in Matagalpa, Nicaragua.
The report is available here: YGYI Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms.
Please review important disclosures on our website at www.seethruequity.com.
