That update coincides with the FDA entering the tobacco-flavored Classic BIDI® Stick into the final Phase III scientific review, which, when all is said and done, could lead to unrestricted marketing approval and open the door to a multi-billion-dollar U.S. market opportunity. If that becomes the result, KAVL share price valuations at current levels present a potentially enormous opportunity for investors to take advantage of a well-positioned company that could quickly transform from impressive to hyper-growth mode. And the court win isn't the only news fueling expected near and long-term growth.
KAVL also announced a business partnership with tobacco industry behemoth Philip Morris (NYSE: PM), leveraging into KAVL's market position to launch its custom-branded self-contained e-vapor product, VEEBA, which PM intends to market in
That's led to increasing interest in KAVL. And while KAVL shares may tend to follow broader market sentiment, it's been clear that when risk trades prevail, KAVL can outperform by significant measures. But remember that even the weakest market sentiment often can't hold fast-growing company prices down. That means with KAVL looking like it's in its best position ever for explosive growth in 2023, its shares could rise appreciably no matter the direction of NASDAQ markets.
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Positioned To Grow- Here's Why
KAVL has undoubtedly laid the groundwork for that to happen. In addition to Court wins and partnerships, KAVL announced extending a critical marketing deal that helps enhance a pathway to meet
They didn't play favorites, either. Juul, owned by
Thus, there are reasons supporting the bullish sentiment. Moreover, while potentially able to score massive market space wins on its own, it's no overstatement of how valuable KAVL's role can be for others wanting to stay business relevant in the sector. In that respect, speculation is already mounting that the deal with PM is the first of several, with other industry giants like
KAVL Grows Other Brands Get Smoked
Right now, that's a point to consider. While KAVL stands strong, small, independent brands may not have the financial muscle to meet new FDA requirements. Worse, most certainly probably can't pay the fines already levied. They can be enormous, evidenced by Juul's
They noted that Bidi(TM) Vapor's application included over 285,000 pages, including science-based evidence demonstrating that Bidi(TM) Sticks are Appropriate for the Protection of Public Health (APPH). In addition, the applications support the public need to provide alternatives to adult smokers of combustible tobacco products. KAVL met that filing burden by detailing 11 flavored varieties with 6% weight/volume nicotine concentrations as part of the company's proprietary e-liquid formulation. That's not all. From a competitive perspective, Bidi(TM) Vapor has engineered its electronic nicotine-delivery system (ENDS) products using its own patented technology, ensuring quality control and assurance from the raw chemicals and components purchased through the manufacturing process in a cGMP (current Good Manufacturing Practice) facility. The quality assurance doesn't end there.
Products then go through various in-vitro and in-vivo toxicity testing (including genotoxicity tests) at a GLP (Good Laboratory Practice) approved lab, as well as HPHC (Harmful and Potentially Harmful Constituents) analysis of both the aerosol and e-liquid in ISO 17025 certified labs. KAVL added more, saying that applications included data from Bidi(TM) Vapor conducting three independent surveys and one "combined" consumer survey of people aged 21 and over.
All told, the work highlighted separates KAVL and its products from 99% of the competitive field. Thus, saying that KAVL stock looks appreciably undervalued at less than a dollar isn't subjective; it's justified.
The more excellent news for KAVL and its investors is that the competitive landscape may not expand anytime soon. If anything, the FDA rules have become increasingly restrictive. That's coupled with ambiguous legislation being enforced by federal regulators determined to keep tobacco and nicotine products away from the hands of young adults.
While the proper intention, their inconsistent intervention and unclear regulatory guidelines have all but extinguished a multi-billion-dollar flavored electronic delivery systems market. Many small and large domestic brands have been unable to survive the challenges imposed by the FDA, with mom-and-pop vapor shops closing their doors across the nation. Not KAVL.
They are expediting growth by taking significant steps to ingrain themselves as a sector leader. And keep this in mind- it's not often that a multi-billion-dollar market cap company knocks on the door of a micro-cap for help. But that's what's happening now. And these developing relationships can do more than aid KAVL in maintaining and building its
International Markets Play By Own Rules
Another thing to remember, the rest of the world isn't bound to the
Moreover, they can expedite market penetration by allowing KAVL to concentrate their time and strategic efforts on marketing into these key international markets. The favorable dynamics in those markets, coupled with licenses in hand, should help transform marketing ambitions into revenues faster than many expect. Keep in mind, too, that KAVL may get a running start to market in the
But here's the more excellent news: penetrating the
A KAVL Proposition Too Good To Ignore
If so, KAVL stock at current prices may present a value investment opportunity too good to ignore. In fact, it would be hard for any investor or sector analyst to argue against KAVL being better positioned than most to exploit billion-dollar marketing opportunities in a beaten-down sector. Frankly, played correctly, KAVL could transform from a niche ENDS sector player into one of the more influential companies in the ENDS space.
That's not blind ambition; it's an assumption supported by an FDA that has dismantled the ENDS competitive landscape, leaving only a tiny handful of domestic or international companies positioned to do what KAVL can. Thus, those thinking KAVL doesn't hold tremendous intrinsic firepower to increase shareholder value and have enough leftovers to fuel the growth of others need to reconsider.
In fact, with plenty of news on the wires, and more expected soon to support that presumption, action instead of consideration may be better warranted. After all, the cumulative nature of what KAVL has said and is expected to say supports the premise that the path of least resistance for KAVL stock is higher. In other words, this valuation disconnect may not last, but then again, the biggest ones typically don't.
Disclaimers:
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
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