There were many stocks that recorded gains on Friday but one of the stocks to have emerged as one of the bigger gainers was that of Phoenix Rising Companies (OTCQB:RSSV). Back on July 24, the company had made a major announcement and it seems that was the trigger behind the massive rally on Friday.
The Phoenix stock rose by as much as 215% on Friday and considering the sort of gains made by the company, it could be quite worthwhile for investors to start taking a closer look at the recent developments. On July 24, it emerged that the company is exploring the possibility of expanding the marketing efforts of its fully owned subsidiary ADMALL substantially in key markets.
It has emerged that ADMALL is now looking at opportunities to expand its marketing to Australia, Western Europe, and the United States and in other key markets in the Western world. ADMALL is involved in producing beauty and wellness products, with a special focus on improving cells from the DNA level.
The company’s products are created through scientific solutions and are focussed on tackling well-known problems like toxins, poor nutrition, and stress. This is a significant development for ADMALL and the move could result in far higher sales in lucrative markets. On Friday, market participants seemed to have caught on to that and the stock rallied by as much as 215%.
The company is based out of Asia and primarily operates in the markets on the continent. The products have been well received in the Asian market and hence, the decision to get into the Western markets is an understandable strategic move. The President of the company, Patrick Tan, who is also a director at Phoenix, stated that the move will help in unlocking a lot of value for shareholders as well as customers since ADMALL will be working in markets with a much higher proportion of affluent customers.
In addition to that, it is also important for investors to keep in mind the sheer size of the market in which ADMALL will be competing. In 2018, the Global Wellness Institute estimated that the size of the worldwide market for anti-aging, beauty, and personal care hit as much as $1.1 trillion. The biggest chunk of the global market was in the Western world and in addition to that profit margin stood at 50% of the sales price.
In this regard, it is also perhaps necessary to point out that Phoenix Rising had made another key acquisition back in May. The company announced that it had filled in the term sheet for the total acquisition of a European company that is involved in controlling the spread of viral and bacterial diseases. It is an important acquisition and one that could prove to be a lucrative one in the long term.
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