Fresh Healthy Vending International, Inc. (OTCMKTS:VEND) Bets on New PR to Boost Price
For a while now, Fresh Healthy Vending International, Inc. (OTCMKTS:VEND) has looked as if it overstayed its welcome. So the latest downward trend starts to look like a deeper unraveling of the company’s post-promotional positions. VEND slid down another 10% last Friday, and has more than wiped out any gains made during the March rebounce. In the last day of trading, VEND reached $3.69 on dollar volumes of $2.02 million.
But VEND has not completely abandoned its self-promotional efforts. The latest awareness-raising event was devoted to one of the major talking points for the company- the regulations about healthier snack options in US schools. VEND announced it had presented at the 69th Association for Supervision and Curriculum Development Conference, in Los Angeles, March 15th — 17th.
While we don’t know how this would affect the bottom line, at least the PR effort may stave off a deeper crash, as VEND already shows flagging volumes. The new legislation is expected to take hold this summer, and it is possible that VEND will ride the news to boost its impression. But the recent good days are nothing compared to the gains made when the company was touted in two waves of an influential paper-mailer.
In addition to the PR, VEND received a boost from Stockpalooza.com at the end of February, which caused the initial days of March to be amazingly good. But as it is easily seen, the party did not last for long, and VEND could not stand more stable on the $4 position.
For VEND, investors’ forums are relatively inactive, as the high-priced ticked does not allow too active trading for short-term purposes. Still, the outlook is mostly positive, with a bent toward a longer-term view.
Compared to other OTC companies, VEND has a relatively stable business model, and has done well given the large scale of its promotions, managing to keep a part of the gains. In the case of Bebida Beverage, Inc. (OTCMKTS:BBDA), there was everything going right in terms of a working business model and a distribution chain of soft drinks. Still, the overly-diluted share structure would not let BBDA get above its dismally low positions, keeping it at $0.0026 after a few volatile months.
VEND slightly recalls the case of The Alkaline Water Co., Inc. (OTCBB:WTER), which went up on very optimistic promises about its distribution chain and the potential of its products in a health-conscious society. But WTER could not stem the leak, and crashed down from the $1 levels at the height of the promotion, toward the current positions at $0.17.
VEND has shown that it is reactive to positive publicity, and especially promises of developing its franchising network. Presentations to investors and other public activity often work well to lift the share price to a higher range. Still, if you look for the quicker gains, keep in mind that this stock has had its negative or stagnant periods, so estimate the preferred time frame well.