Shares in direct seller CVSL ($CVSL) have been higher of late as losses stem and the company gets the message out that they are turning the corner. I noticed them appear on my radar as an upside mover for Wednesday's action moving up 20%. Since the 4th of July shares are up 180%, moving from $1 per share to as high as the $2.99 it hit during today's trading session. CVSL closed at $2.53.
This comes on the back of a clear market awareness campaign to get out and spread the word, attending conferences and issuing PR through a concentrated effort. It is working, but you must have revenue growth to move your valuation over the long term. It cannot be smoke and mirrors.
CVSL engages in direct-selling business in the United States and internationally, and consolidates multiple brands under one public company roof, which is a cool idea. They pool a variety of popular product lines like hand-crafted baskets and products for the home, including pottery, cookware, wrought iron, and other home decor products division. They also have hand-crafted spices, home improvement and personal safety products for women. Not to mention nutritional supplements and skin care products, gourmet food products, stationery and paper products; and vinyl expressions for display on walls. They really run the gambit of direct sale product marketers.
CVSL is not the first direct seller, looking back over popular Direct Sales success stories is Amway, Avon (AVP), Herbalife (HLF), Mary Kay and Tupperware (TUP), and everyone of these surpassed multi-billions of dollars in sales as far back as 1886 for Avon Products. This market has grown exponentially and the use of Social Media has helped spread the word and validated many brands for the consumer over the last few years. I had never heard of CVSL until today, so we are looking at this together.
I called the company media contact and sent a few emails trying to learn more about what they do and how they do it, but I'm sure they have busy days now as the stock price starts to settle in and capture market cap and volume as they pass through the $100 million dollar valuation barrier and achieve 6x volume-adding liquidity.
I look forward to learning more about what they do and the longer-term plan, but this is a good start understanding how shares are trading and perusing the website researching the products they sell. My only hesitation is chasing shares in this momentum move as the company turns the corner and look to get in the black in 2015. I can tell you I plan to be on the next conference call; that I can promise.
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