One stock that has started to gain increasing traction in recent days is Stemsation International Inc (OTCMKTS:STSN), with shares rallying as much as 300% in the past two weeks on a surge in trading volume. Given the sharp rise, we thought it would be a good idea to take a closer look.
Based on available information, Stemsation appears to be a direct sales company focused on leveraging advances in stem cell and cannabinoid research to produce and market supplement-based products with wide applications in the wellness marketplace “for people searching for natural ways to look, feel, and function at their best.”
A little digging will show that Stem Cell and Cannabinoid supplement products are both rapidly growing potential opportunities, and we have certainly seen several direct sales brands take off in recent years. Hence, STSN bears close observation at the very least as shares start to show signs of increased attention.
The recent surge in the value of the stock appears to be due to the launch of the company’s second big-market product: ProStem PSP, a stem-based all-natural whole-body wellness supplement now hitting the market through the company’s army of “advocates”.
Big Picture
It’s possible that, as more and more products stream out (and another core product is expected to launch very soon, according to company communications), we might see a series of bursts in attention on the stock given the direct selling engine that has been put in place. To help that engine fire – and this is probably the most significant point – the company boasts an A-level team with nearly 200 years of combined successful experience in the health and wellness marketplace.
We have seen how a well-orchestrated direct sales engine can power a brand through examples like Herbalife and Avon, among others. Stemsation is another company working with a similar model.
As the company recent announced, its home-based business model provides an opportunity for a primary or secondary source of income by utilizing web-based audio and video conferencing tools directly from home for marketing, communications, and training purposes.
Given the collapsing economic situation and the proliferation of service-sector workers now searching for new income, the company should see a functionally bottomless supply of eager advocates lining up to help push the brand.
As noted in its key release this spring, StemSation relies on person-to-person sales by independent representatives, often working from home utilizing various web-based audio and video conferencing tools such as Go To Meeting, Ring Central, Vonage, Zoom and Skype that allow users to meet online, with or without video.
“Stemsation’s direct selling business offers you the ability to build, track and manage a network of independent business partners to assist with growth of sales revenue and income, utilizing a proprietary “BackOffice” software platform with your personalized website included. Because direct selling is a low-barrier opportunity (it doesn’t require a large investment, minimum educational skills or prior business experience) anyone 18 years or older can start a direct selling home-based business. Success is driven by the amount of time and effort put into sharing the unique benefits of the StemSation products with others. This makes StemSation an attractive opportunity for those who wish to overcome certain risks associated with a recession.”
In terms of labor supply for mobilizing its direct sales engine, this is a remarkable moment in history for the company.
Building the Portfolio
According to company materials, STSN is mobilizing its R&D toward finding all-natural supplement solutions that harness both the stem cell system (SCS) and the endocannabinoid system (ECS), which have both been shown to positively impact many physiological features through non-chemical, non-pharmaceutical pathways. These are out built-in resources for restoring balance and rejuvenating damaged tissue in one form or another.
In the company’s most recent release, Stemsation International Inc (OTCMKTS:STSN) announced the launch of its second product, a fast-acting and exclusive formula named ProStem PSP for joint and muscle health is now in U.S. distribution and available for sale through its network of Independent Wellness Advocates.
According to the release, distribution will ramp up this 3rd quarter to include Europe, increasing revenue as consumers continue to take more personal responsibility for their health and wellness during these unprecedented times.
Ray C. Carter, Jr., CEO of StemSation stated “Our initial flagship product StemRCM, supporting immune system health, is being met with much enthusiasm by consumers and healthcare practitioners alike. Now with the addition of our second product, ProStem PSP, we enter the very large and fast-growing area of joint and muscle health. It’s topical companion product, StemFlexTM, will also be available soon, further making our products unmatched in efficacy and innovation.”
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