As one of the emerging green stocks, Megola, Inc. (OTC: MGON) is focused on acquiring eco-friendly product lines and technologies in different industries. Through its diversified portfolio, MGON is able to venture into a number of markets globally. After announcing the closure of two acquisitions and promising two major acquisitions in the coming months, MGON stock soared 150% on the news. With this in mind, MGON stock could be one of the green stocks to watch this quarter in anticipation of these acquisitions.
MGON Stock Catalysts
As the world becomes more focused on green products and solutions that are safe for the environment, MGON is in a prime position to benefit from this shift in demand through its diversified portfolio of green products. With brands and product lines in a number of industries, MGON’s offerings include everything from specialty coffee to fire inhibitors and coatings. This focus could lead MGON to become one of the emerging green stocks.
Specialty Coffee
Aiming to ramp up its operations, MGON entered into an asset purchase agreement with RBG Wholesale. According to the terms of this agreement, MGON will purchase Specialty Coffee product lines, branding label, as well as secure supply agreements for $15 thousand. Through this product line, MGON will offer a variety of specialty coffee while following biodegradable packaging guidelines. Some of the coffee varieties MGON will receive through this transaction include: weight loss coffee, immune boost coffee, a sensuality tonic blend, energy blend, and tranquility blend as well as CBD-infused coffee. Given that the specialty coffee market is expected to reach $152.69 Billion by 2030, MGON could find these coffee lines to be a lucrative investment.
Sio2 Proteksol
Hoping to continue growing the company’s portfolio of brands, MGON has also acquired the license and manufacturing rights to Sio2 Proteksol Seed & Foliage from Medesol LLC for $15 thousand. As a nano-particle free coating application, Sio2 Proteksol helps seeds and plants to grow naturally by treating them with a coat of silicon dioxide molecules. The coat then forms a protective layer over the seed protecting it from mold while acting as a fertilizer.
Considering the ongoing global food crisis, Sio2 Proteksol could see increased demand thanks to its ability to improve root size, increase seed vigor, as well as increase yield per acre. With this in mind, Sio2 Proteksol could eliminate the need for traditional chemical fertilizers that have serious impacts on the environment. Less expensive than traditional fertilizers, Sio2 Proteksol could appeal to farmers and hobbyists interested in a more environmentally friendly fertilizer solution
Stink Genie
In addition to its two recent acquisitions, MGON has two other brands, one of which is focused on deodorizing and sanitizing. This brand, Stink Genie, aims to reduce and eliminate toxic compounds like mold and fungus as well as infectious viruses like Covid-19, bacteria, and influenza. Moreover, Stink Genie is able to remove the source causes of odors instead of masking them. As this product is integrated with Ozone, Stink Genie can generate an ozone shock treatment in small and large areas which effectively treats major odor issues.
Balanced2Day
Through its other brand, MGON is engaged in the lucrative medical cannabis industry by offering hemp extract products through Balanced2Day. By utilizing the healing powers of hemp and cannabis, this brand’s products help consumers boost their energy, as well reduce pain and stress. Given the rising demand for such products, MGON has already positioned the brand for success by offering its products in all legal states across the nation.
Acquisitions
With the company finalizing the acquisitions of Sio2 Proteksol and RBG Wholesales’s product lines, MGON has also shared its plans to expand its portfolio to include fire inhibitors, antimicrobials for treated wood products, fire gel for lithium batteries, and an organic treatment for bedbugs and dustmites. The new products are in line with the company’s goal of becoming a consortium group of health technologies and eco-friendly product lines. With its e-commerce branding division, service department, licensing division, and franchise division already in place, MGON appears well positioned to oversee every aspect of its brand portfolios from manufacturing to distribution of its patented IP products.
Meanwhile, MGON has announced its filing for name change to Alo-Gem and symbol change to AGEM, LGEM or AGMM. There is no set timeline as this will be determined by Finra
MGON Stock Financials
According to its latest annual financials, MGON reported $73.7 thousand in assets with $293.3 thousand in liabilities. In terms of revenues, MGON reported $16.7 thousand – a decline from the $95.5 thousand it reported in the previous year. Despite this, the decline in revenues is mainly attributed to supply chain woes and the Covid-19 pandemic’s resurgence. With the company clearly looking to the future, MGON could be set for major financial growth as it strengthens its portfolio of brands and IP.
Media Sentiment
@WildRhino is watching MGON for its June catalysts
For more information on MGON stock check out @ChaseMacTrades video covering it
Technical Analysis
Currently trading at $.0052, MGON stock has lost momentum since its initial announcement and has dropped close to its support at .0048. It has a second support at .0037 which is a strong level for the stock. Typically MGON sees a rebound from its support at .0037 but whether it stays above .0048 likely depends on the company’s future acquisition plans. Considering its market cap of only $1.1 million and low float of around 196 million, MGON could move easily on positive news.
Despite the MACD being bearish, accumulation has continued to climb over the last few days. The RSI is currently at 46 but trading volume has dropped recently to around 500,000 after reaching 8 million on May 11th.
MGON Stock Forecast
As is, the company believes that with the global transition towards environmentally sound solutions MGON and its shareholders will stand to benefit from its “unwavering vision of providing superior solutions that support a sustainable future”. With the company capitalizing on the growing interest for eco-friendly products, MGON could be one of the green stocks to watch as it works to generate shareholder value with these new product lines. As the company expects two major acquisitions to be closed in June, MGON stock could see another run on news.
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