An emerging manufacturer and retailer of performance sports beverages, Performance Drink Group, Inc. (OTC: PDPG) is capitalizing on the industry’s rapid growth. PDPG has been on investors’ radar ever since its impressive 235% increase overnight. Currently, the company is gearing up for operations as it plans an acquisition and a JV in the drinks manufacturing space. In light of these efforts, PDPG could be one of the most promising low float stocks in 2022.
PDPG Stock News
Founded by serial entrepreneurs – David W. Lovatt and Leonard K. Armenta Jr, PDPG is created to fill a growing gap in the manufacturing of energy drinks and sports nutrition beverages. As people increasingly realize the vitality of nutrition in the COVID-19 era, revenue projections for the global sports nutrition foods and drinks market are set to reach $90 billion by 2022.
In light of this, CEO David W. Lovatt is bullish on the company’s efforts to penetrate this growing market. Currently, PDPG is building off its Joint Venture while planning acquisitions to capitalize on this increase in demand, ramp up production, and increase operational efficiency. To achieve this, Lovatt has assured investors that the company’s “acquisitions will be only revenue generating brands, and that the JV will be for manufacturing”.
To facilitate this, the company is currently in the process of securing investment that will help it develop operations and increase supply in the market. The funding will also help the company innovate further by creating different flavor extensions and improving ingredients within the drinks themselves. As PDPG works towards this, Lovatt believes “this is a recipe for significant revenue generation and for success both in the US and across Asia.”
The company has already taken steps towards achieving this. On January 20th, PDPG announced an offering of 1 million common shares at a PPS of $.02 – with the goal of raising $20 million in net proceeds. If successful, this offering could accelerate the company’s growth plans and facilitate further acquisitions within this growing industry.
Aside from the company’s efforts, investors are bullish on PDPG in light of its solid share structure. With 500 million AS and over 380 million, PDPG has an incredibly low float of only 379 thousand – which positions it among some of the best low float stocks with many impending catalysts. As the company releases updates regarding its JV and future acquisitions, investors are bullish PDPG see another run past its resistance.
Media Sentiment
As one of the most promising low float stocks, @BMoeKnows believes PDPG could a massive run-up on updates from the company.
Technical Analysis
Currently, PDPG is trading at $.43 with a support near .2143. The stock shows a primary resistance at .8549 and a secondary resistance at 1.8525. Accumulation has dropped slightly following a massive increase on February 4th. MACD is on a bearish crossover and the RSI is at 37 – indicating the stock is oversold.
Given that the stock is trading near its support, bullish investors could find now a good entry point on PDPG ahead of its catalysts playing out. Even though updates could send this low float stock on a run, PDPG is clearly volatile – which is why it is crucial that investors don’t chase. While the MACD is bearish and the RSI is relatively low, accumulation remains somewhat steady – indicating investors’ bullish sentiment and belief in the company’s growth potential.
PDPG Stock Forecast
With an incredibly low float and several upcoming catalysts, PDPG could see a major run sooner than expected. As the company seeks funding, it is well-positioned to ramp up operations, expand further and capitalize on different revenue streams. As of now, investors are awaiting updates regarding the company’s JV and potential acquisitions. Given its low float, many are bullish updates could send the stock on a massive run – making PDPG a potential profitable investment.
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