Else Nutrition -- Moving to the positives, there is a good chance that these (the positives) will win out for Else. For microcaps, the main current problem is that we are deep into the 'risk off' part of the cycle, which has dramatically pummeled the former high fliers and trendy sectors. High flying microcaps were the most vulnerable, and those that manage to survive will need to have some 'Darwinian' advantages -
1) Plant based foods are the future. Like the move to electric cars, the smart grid, CBDC/Central Bank Digital Currencies, etc, the move away from animal based protein is in the cards and is going to happen (for better or worse). Strategically this puts Else in an enviable position, and
as the larger food companies increasingly 'go plant', Else will be a logical acquisition opportunity to provide quick 'bolt on' exposure for the larger food companies.
2) Marketing savvy - one area where Else seems to excel is in marketing itself. I'm just a casual follower of the stock, but their ability to market and 'network' the products has seemed pretty impressive, and appears to come naturally to the company's management. So a good sign.
Other aspects that are less sure include -
Finances - microcaps always seem to need money, which goes with the territory. While the recent decision to raise funds has had a profoundly adverse effect on the stock price in the near term, the alternative would have been to scale back the growth plans of the business significantly. The CEO's decision to raise money allows growth to continue, and raising the money now hedges against a further deterioration in the financing landscape should the world end up mired in a serious global recession.
Anyway, just a few thoughts concerning the state of things with Else. Please add additional insights, corrections, etc. I don't currently have a position, but owned some Else several times in 2020 during the momentum phase, and was mainly attracted to the 'plant-based is the future' angle, and Else's seemingly innate talent for marketing.
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