With Key Technicals Leaning Oversold, Past Champ (SPONF) Could Be Triggered To A Near Term Reversal
(US: SPONF) (CSE: SPO)
I've been eyeballing a specific past champ closely and want you to get it back on your radar this second.
To be blunt, there are 2 key reasons to soak in right now:
- First, when I brought this past champ to your attention back in January of 2021, it ran from a sub-penny $.007 level (which it is at once again), to a high of $.0318 high for an approximate run of 354%.
- Second, because I alerted you again in February of 2021 before it went on a run from approximately 272% from a low of $.0295 to a high of $.11.
Could its next big breakout be taking shape as we speak?
With this profile now trading at sub-penny levels again, it is displaying a stunning amount of upside potential to its 52-week high of $.11.
Now, I'm not saying this profile is going to soar to $.11 this week, but due to its disruptive advertising model, multi-channel distribution network, and several potential catalysts, I want you to turn your full attention again to this past champ for Wednesday, February 9th:
SponsorsOne Inc. (OTC: SPONF)
SponsorsOne is the leader in the next evolution of brand creation and digital marketing through influencer marketing, storytelling, and digital-commerce with the SponsorCoin platform and its highly scalable – smart contract-based digital currency.
Combined, this allows the brands to build and manage exclusive and highly engaged communities of influencers (from pro to micro-influencers) within the social realm.
And right now, this past champ has 5 potential catalysts that could lead to its next possible breakout:
The No. 1 SPONF Potential Catalyst
SponsorsOne Provides an Operational Update and Goals for 2022 Company
Waterloo, Ontario – TheNewswire - January 20, 2022 - SponsorsOne Inc., a company that utilizes its proprietary platform that combines digital marketing, wholesale and retail distribution, branding, and operational & funding capital, giving it a competitive first-mover advantage in rapidly growing its proprietary brands focused in the Alcohol, Functional Beverage, and He-mp Sectors is pleased to provide an operational update and focus for 2022.
Myles Bartholomew, CEO of SponsorsOne, said, "Last year, we launched Doc Wylder's in several test markets to establish product-market fit with major retailers like Costco and Ralphs. The table is now set to scale Doc Wylders in the USA and Internationally."
IWSR states: "The market for ready-to-drink (RTD) alcohol products continues to show traction and demand from consumers. RTD volumes have been growing faster than any other major drinks category since 2018 and are expected to significantly outperform the wider beverage alcohol market over the next five years, increasing their market share to 8% by 2025 (from about 4% share in 2020) in top RTD markets."
2021 Review – Summary
- Doc Wylder's product line was introduced and adopted by regional and national distributors. Costco and Ralph's test-marketed the product, and in both retailers, we exceeded the minimum sales required for additional purchasing.
- We introduced the Smithville, 4 Corners, and Riverview spirits products to test market demand among retailers and distributors.
- We created a new product division to focus on C-B-D He-mp Smokes and secured large-scale production capacity. Discussion among distribution and retailers helped us refine the launch strategy for 2022.
- 2021 Revenues represented the sample orders placed in retailers and our online ecommerce platform.
- The SponsorCoin platform was upgraded with a new software language to provide the scaling capability for security and reliability.
2022 Outlook – Summary
- SponsorsOne's capital structure and markets will be a priority in 2022, focusing on shifting the shareholder narrative to operational execution with visibility of financial metrics to map and track the Company's progress. The narrative in 2021 was about the build as we entered the Brand creation market.
- We are focusing on the distribution channels and regions that proved successful. In large national grocery, we are expanding our market coverage with Ralph/Krogers through the relationship with RNDC. In the national club channels, we are working towards a larger regional program with Costco. In the specialty channel, Doc Wylder's expects to replicate the success at Lee's Liquors in Nevada in high growth markets like California and Arizona.
- Debt versus Equity will focus on financing purchase orders and inventory. In 2021 we used equity to finance start-up inventory. As our client base grows and revenue becomes predictable, we can transition to debt financing (Purchase Order and Invoice Financing), which is much less costly than equity.
- New co-packer relationships are being developed that can more efficiently handle the bottling and packaging of the Doc Wylder’s product.
- Some packaging design changes have occurred, allowing for higher production capacity and maintaining the re-sealable lid on Doc Wylder's.
- The Spirits business will move to a control label strategy whereby we will sell the spirits Brands to distributors or influencers. Discussions are ongoing around the sale of the Smithville, 4 Corners and Riverview Brands. The sale includes all the inventory, brand design, goodwill, and our support to continue to supply the Brand owner with the product.
- With He-mp Smokes, we expect distribution agreements in place in the first half of 2022 and will use 2022 to scale up production, marketing, and general market acceptance of the three brands we created. Both USA and International distribution discussions are making progress.
- The SponsorCoin platform is intended to beta test around the Doc Wylders Brand this year, validating the community commerce model of digital engagement. We are seeing the shift of the influencer to the authentic community, which supports the idea of decentralization away from large, centralized influence. The data generated will allow us to tune messaging and engagement leading to increased sales.
In summary, 2022 will be a transition year from development to growth. With CV issues still present and taxing the supply chain, our management team will continue to balance the inventory levels to ensure quick order turnaround while managing the On-Demand supply chain, reducing the need for internal capital. It will be a challenging year for us, but the groundwork achieved in 2021 sets SponsorsOne up for a successful 2022.
Read the full article here.
The No. 2 SPONF Potential Catalyst
As of close on Monday, Barchart was reporting this profile to have several oversold leaning technicals.
These technicals could be signaling a healthy reversal in the near term for SPONF.
Here's the definition of a "reversal" from Investopedia:
"A reversal is a change in the price direction of an asset. A reversal can occur to the upside or downside. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside. Reversals are based on overall price direction and are not typically based on one or two periods/bars on a chart."
Now, here are some key technicals (as of close Monday) that could signal SPONF to be leaning oversold and on the verge of a potential reversal.
- 9-Day Relative Strength Index: 31.42%
- 14-Day Relative Strength Index: 33.34%
When these numbers drop down to the 30% range and lower, they can be viewed as being in oversold territory. While in this territory, they can paint the picture of a profile that is undervalued.
- 14-Day Raw Stochastic: 9.09%
- 14-Day Williams %R: 90.91%
As the Raw Stochastic nears the 10% range and lower and the Williams %R nears the 90% range or higher, these technical indicators may also be viewed as oversold and undervalued.
Keep an eye on these technicals closely.
The No. 3 SPONF Potential Catalyst
SponsorsOne Announces 2nd He-mp Smokes Brand Named Suede for Domestic Markets
He-mp Smokes "Suede" Brand joins Primero He-mp Smokes Brand
Waterloo, Ontario – TheNewswire - November 2, 2021 - SponsorsOne Inc., (CSE:SPO), (CNSX:SPO.CN) (Frankfurt:5SO), (OTC:SPONF), a company that utilizes its proprietary platform that combines digital marketing, wholesale and retail distribution, branding, and operational & funding capital, giving it a competitive first-mover advantage in rapidly growing its proprietary brands focused in the Alcohol, Functional Beverage, and He-mp Sectors is pleased to announce the launch of a second He-mp Smokes brand "Suede" for the domestic markets. This announcement is on the heels of a recent press release where the Company announced, Primero He-mp Smokes, designed for the domestic and international Latin American market/consumer.
Myles Bartholomew, CEO of SponsorsOne, said, "Suede He-mp Smokes is the second Brand of CB-D- rich he-mp product introduced to the industrial he-mp industry segment, and we are very pleased to offer high quality, organically grown products. SponsorsOne's manufacturer is an FDA - USDA certified manufacturer and organic industrial he-mp cultivator producing Suede He-mp Smokes. Consistent quality at high volumes to meet the growing demand among the expanding number of he-mp smoke customers, as well as to-bacco and MJ smokers considering a switch to he-mp smokes."
Read the full article here.
The No. 4 SPONF Potential Catalyst
SponsorsOne Launches Primero He-mp Smokes Brand to the Latin American Market
Initial launch set for export to Mexico, South America and Latin American markets in the USA.
Waterloo, Ontario – TheNewswire - October 20, 2021 - SponsorsOne Inc., (CSE:SPO) (CNSX:SPO.CN), (Frankfurt:5SO), (OTC:SPONF), a company that utilizes its proprietary platform that combines digital marketing, wholesale and retail distribution, branding, and operational & funding capital, giving it a competitive first-mover advantage in rapidly growing its proprietary brands focused in the Alcohol, Functional Beverage and He-mp Sectors, is pleased to announce the launch of the Primero He-mp Smokes brand targeted at the Latin American markets domestically and internationally.
Myles Bartholomew, CEO of SponsorsOne, said: "Pimero He-mp Smokes is our lead brand in this category and we are very pleased to offer a high quality, organic grown product to the He-mp Smokes marketplace. Our focus was to partner with high production organic growers and manufacturing to ensure consistent quality at high volumes to meet the emerging demand as to-bacco and MJ smokers consider switching to He-mp based smokes."
Read the full article here.
The No. 5 SPONF Potential Catalyst
SponsorsOne Secures Distributors in Illinois to Supply the US Midwest
The expansion of our national distribution continues adding the Midwest to Western, Southwest, Southeast, and Northeastern existing distribution partners
WATERLOO, ON / ACCESSWIRE / September 27, 2021 / SponsorsOne Inc., (CSE:SPO)(Frankfurt:5SO)(OTC PINK:SPONF), a company that utilizes its proprietary platform that combines digital marketing, wholesale and retail distribution, branding, and operational & funding capital, giving it a competitive first-mover advantage in rapidly growing its proprietary brands focused in the Alcohol, Functional Beverage and He-mp Sectors, is pleased to announce that Doc Wylder's will be distributed in the Midwest by Loius Glunz Beer, Koerner Distributor, and G&M Distributors all located in Illinois.
Myles Bartholomew, CEO of SponsorsOne, said: "We continue to build our national distribution channel for our Ready to Drink products and Premium Spirits, ensuring we can service both local and national retailers across the US. We continue to see demand for natural ingredients with sophisticated flavors in this high growth RTD market, and Doc Wylder's is centered directly in this market."
The following distributors are now approved to distribute Doc Wylder's:
Louis Glunz Beer (Lincolnwood, IL)
Over the last 126 years, Louis Glunz Beer, Inc. has adapted to the many changes in the industry from Prohibition, The Great Depression to the current day surge in Micro and Specialty beers and use of technology in our everyday lives. Adapting to these many changes in the community, market and industry is what sets us apart from the other distributors in the area. The Company is dedicated to quality service and to educating its customers and the public about beer tastes and trends.
Koerner Distributor (Effingham, IL)
Family-owned and operated since 1982, Koerner Distributor, Inc. has grown to become one of the largest beverage distributors of beer, wine, liquor, and non-alcoholic beverages in the great state of Illinois. The headquarters are located in Effingham with satellite offices in Carterville, New Baden, and Champaign. Four locations enable us to serve 66 of the 102 counties in Illinois.
G&M Distributors (Dixon, IL)
Since 1946, G & M Distributors, Inc. has been family-owned and grown to become one of the largest beverage distributors of beer, wine, spirits, soft drinks, and more in the state of Illinois. We're located in Knox County in Galesburg, IL, and in Lee County in Dixon, IL. We are proud to serve many Illinois locations with a variety of brand-name, high-quality products.
Read the full article here.