Will NightFood Hldg Inc (OTCMKTS:NGTF) crumble or continue climbing the ladder? The stock has started 2019 on a roll, as was the case last year, powering through key resistance levels on its way to three-year highs. However, the big question remains, will the stock, continue edging higher?
NGTF Share Price Analysis
Unlike 2018, Nightfood remains well positioned to continue rallying given the solid underlying fundamentals. The stock continues to elicit strong investor interest on the company embarking on an aggressive expansion drive, in pursuit sales opportunities in sixteen states.The company has inked strategic partnerships that are set to expand its footprint into Chicago, Detroit, and Milwaukee. In addition, the company has expanded its operations into California.The odds are in favor of Nightfood Ice Cream having a solid year as it continues to fire on all angles, in pursuit of growth and revenue opportunities. A breach of the $0.65 critical resistance level opened the door for the stock to continue surging. NGTF Daily ChartAfter the recent spike, pullbacks could come into play on investors taking advantage of the recent spike to take in some profits. Immediate support on pullbacks is seen at the $0.65 mark. Above the $0.65 mark, Nightfood remains well positioned to continue surging. A breach of the critical support level, on the other hand, would open the door for short sellers to push the stock back to the $0.50 level.
What Does Nightfood Ice Cream Do?
Nightfood manufactures markets and distributes snack products across the United States. The company has been making news in the ice cream sector having won the product of the year award in 2019.
Why is Nightfood Ice Cream Exploding?
Shares of Nightfood Ice Cream are exploding on the confirmation the company is poised to expand distribution of its products to sixteen states. The company has already begun the second production run of Nightfood ice cream, as it seeks to address the $50 billion nighttime snacking problems.Expansion into 16 states comes on the heels of the company winning the 2019 product of the year award that appears to have shone the light on the company’s products. With the second production run, the company is planning to deliver over 120,000 pints of Nightfood to more than 10,000 retail outlets.
“Incredible interest from the media and from consumers shows we’ve struck a nerve… the reviews and feedback on the product itself tell me this is going to be a home run. Now that we’ve confirmed strong product-market fit, all that’s left to do is execute the national roll-out. When I left the R&D lab back in September, I knew we had created something very special,” said Nightfood CEO Sean Folkson.
Distribution Agreements
In a bid to take advantage of the growing demand, Nightfood has inked a distribution agreement with Wonder Ice Cream Company. The agreement paves the way for the company to make an entry into the northern California market. The fact that Wonders owns thousands and convenience stores should allow the company to target a broader customer base
“The amount of media the Nightfood brand has received in recent weeks made this relationship very attractive for us. We anticipate this product to be very much in demand among the clientele serviced by our upscale, independent supermarkets,” stated Eric Capuchino, General Manager of Wonder.
In addition to pursuing sales opportunity in California, Nightfood has signed a distribution agreement with supermarket chain Meijer. With the new agreement, the company’s ice cream products will now be made available in more than 200 grocery stores throughout Michigan, Ohio, Indiana and Illinois
Bottom line
Nightfood focusing on growing its distribution channel underscores its push for sales in the multi-billion-dollar sector. Growing demand for the company’s ice cream products all but highlights what could turn out to be a breakout year when it comes to revenue generation.The company remains on course to meet its distribution and revenue goals thanks to the strategic distribution partnerships inked so far. Given that the stock is trading at three-year highs, one should avoid the temptation of buying at current highs. For that reason, any pullback to the $0.60 level should provide a good entry.We will be updating our subscribers as soon as we know more. For the latest updates on NGTF, sign up below!Disclosure: We have no position in NGTF and have not been compensated for this article.
Discover Hidden Gems
Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.
