Posted by: randyhaaggolf | September 8, 2017

OPPORTUNITY CONTINUED

If you just read my last Post, then you will know why I am writing this one. I wanted to wait until LifeVantage reported its 4th quarter and year end results yesterday, and I listened to the conference call. What most investors are missing at this moment is LifeVanatge has turned the corner, and now will begin to gain the lost confidence back of the investing public.

LifeVanatge has incredible products and with its accelerated global roll-out we should see excellent results in the coming quarters. The bottom line is their guided yesterday to make between $.40 – $.50 a share next year. Which means they are trading at a very dismal 10X forward earnings. I am a shareholder, and I do believe they will move back to last years highs of $12-$15 a share over the next 12-18 months. This market is trading at historic high relative to earnings multiples and you all should be very careful what you buy and hold.

I have been in the Securities business for over 30 years, I make mistakes like everyone does, but I do believe I am right about LifeVanatage. Stock is fairly thinly traded with its daily ave volume of about 100,000 shares.

Below is an excerpt from LFVN’s CEO Darren Jensen speaking on the call. I found it very interesting the direction this company is going and the three initiatives he discusses.

You should read what he says:

Darren Jay Jensen, Lifevantage Corporation – President, CEO & Director

I began the call by saying that LifeVantage is entering a transformation period. Let me explain what I mean. There are several very powerful consumer trends taking shape here in the United States and globally. We have entered a new economy, powered by technology, e-commerce and social entrepreneurship. As a result, historical sales channels are converging, all while consumers are more educated and focused on health. The opportunity is significant and we are transforming our business in an effort to capture this opportunity.

Let me discuss the 3 major trends that are driving our strategy and initiatives. The first major trend is the rise of the health-activated individual. So what is this trend? It is the rapid democratization of genomic and other personalized health data that is giving rise to a new wave of health-conscious individuals. More than ever before, education and understanding about one’s own health is becoming widespread. In the future, we see that individuals will research, measure and manage their overall health much like their personal finances. This consumer trend is growing globally and is now stronger than ever as millennials have become a major driving force, empowered by ready access to genomic testing, health tools and a social network environment filled with influencers, all with the desire to hack the code to a healthier lifestyle. These trends have manifested into biohacking, the art of hacking your biology using nature’s built-in mechanisms to stack the cards in your favor and become the best version of yourself.

Biohacking is do-it-yourself biology using science and self-experimentation to take control of and upgrade your body, your mind and your life. Biohacking enthusiasts investigate tests to control their individual health with nontraditional therapies, nutrition and exercise. The health-activated individual understands how genomics is changing health therapies and is interested in nutrition and LifeVantage’s pioneering leadership in Nutrigenomics, which is the study of how nutrition in naturally occurring compounds affect our genes. This science could very well be the answer to hacking the aging code.

The third major trend is technology and how today’s digital revolution, the second major trend is technology and how today’s digital revolution is changing business. The most successful businesses are leveraging technology to remove macro friction. Macro friction sits at the industry level. It’s the gap between the way things are and the way things should be in an entire industry. Technology has enabled millions of people to have a more convenient tool for short-range travel with Uber. It is the mobile app and the technology infrastructure, not the driver of the car, that remove the friction that existed within the taxi business and changed the industry.

Technology is removing friction from how consumers shop, work and play. Not only is technology removing friction, but it’s also becoming more intelligent, learning and adapting to make people more effective. We are in the process of integrating these technologies into our business systems, distributor tools and training to enable us to better realize the opportunities of social commerce.

The third major trend is channel convergence. This is evident not only in how consumers shop, but how they also work and will work in the future. Network marketing is a dynamic and vibrant channel of distribution that has long offered what traditional employment lacked, which was the ability to work for yourself, when you want and how you want, with control of your own financial success. We are seeing the same attributes materialize outside of traditional network marketing today. For example, Uber is to traditional taxi what direct selling is to working in retail. This channel convergence is changing the landscape of network marketing but also increasing our target audience.

The convergence of channels and social media is driving the rise of social commerce. The combination of channel convergence and social commerce have also given rise to social entrepreneurship. Social entrepreneurs want to use their skills to benefit a cause, working in a way that is consistent with their life purpose. As a result, they are inherently more motivated and effective. Today, all around the world, social entrepreneurship is growing rapidly, leveraging technology, social networks and passions to change how people work. We are positioned to take advantage of these trends as our distributors already engage in social commerce. And we are transforming our business to even better position in social commerce going forward.

With these trends in mind, we have been realigning our products and selling methods and making investments to position ourselves squarely in the middle of these mega-trends. We plan to lead the network marketing industry in this regard and believe that our success will be transformational for our business, our distributors and our customers.

Now let me discuss the strategic initiatives driving our transformation. The mission of our company is to biohack life and biohack the aging code. We will accomplish this by continuing to relentlessly pursue science-based Nutrigenomic products and the research that backs them, coupled with a powerful business opportunity. Product innovation is an ongoing process and we have and will continue to develop innovative Nutrigenomic products with the intent of helping our customers biohack the aging code. Our mission is not merely aspirational, as we are already doing this today. We are pioneers in biohacking and Nutrigenomics. Our Protandim Nrf2 product is the only nutritional substance or supplement for that matter tested by the National Institute of Aging Interventions Testing Program that has demonstrated a significant increase in the lifespan of test animals. This study was first published in June of 2016, which is in the peer-reviewed scientific journal, Aging Cell.

In 2018, our primary product addition is going to be combining several of our powerful Nutrigenomic products into a single solution that will become the basis of our biohacking protocol. This protocol will be a comprehensive offering that will include the following 4 products in a single sachet for daily use: Protandim Nrf2 and Nrf1, ProBio and a new omega-plus product that we plan to launch later in fiscal 2018. This offering will provide an enhanced consumer solution and even more powerful story for our distributors, while increasing average order size.

Nutrigenomics is also part of our TrueScience skin care line. We recently enhanced this line with a limited-time offering of TrueScience Hand Cream at Elite Academy in July. The launch received a strong response, selling out our entire event inventory. We will be permanently including this product as part of our skin care line and rolling it out globally this calendar year.

We have also done considerable research understanding our existing distributors and customers as well as the next tier of potential new distributors and customers. We are focused on removing friction from every aspect of the distributor and customer — and consumer’s experience. The most significant initiative is on the development and implementation of new technologies that we believe will change the dynamic of our engagement with customers and distributors. Others talk about tools, apps and technology. We are going much deeper. We are developing a new platform in conjunction with a Silicon Valley technology company that will pioneer revolutionary ways to interact with our distributors and customers. This platform, which we believe will be the first of its kind in the direct selling space, will integrate artificial intelligence to onboard new distributors, assist them in finding new customers and tailor communications for them. The platform will be designed to learn based upon which activities prove most successful for the individual distributor, how best to tailor businesses — of business activities.

We plan to make the first phase of this platform available in this calendar year through a revolutionary app that will dramatically streamline efficiencies for our distributors and simplify processes for our preferred customers. This significant initiative has been advanced by the recent additions to our Board of Directors who have provided the expertise, skill and relationships to support this platform and aid our success.

With the addition of these transformational technologies, we are also focused on enhancing our distributor base by attracting a second wave of leaders who are technology adept and social commerce savvy. For example, we have recently deployed an enhanced effort to attract new experienced leaders to LifeVantage. These are existing network marketing distributors that have a track record of success in leadership. The program focuses on creating relationships with developed leaders with access to our corporate leadership team, while providing activity based incentives as they build their businesses.

Just as in any business, in any industry, we will incentivize experienced sale leaders to attract and retain accomplished salespeople to drive our business. We have a history of success with similar programs, which have demonstrated significant return on investment.

We are also embracing the channel convergence that is happening globally. As I noted, we are in a new global economy, one marked by social selling influencers and technology. One of the key initiatives we are undertaking is in China, where we are working to introduce a unique social entrepreneurial model based on e-commerce. This is not a network marketing model. It is a new social commerce model that leverages social entrepreneurs and e-commerce. Our goal is to launch as early as the second quarter. This clearly reflects a significant opportunity given the size and the growth of the Chinese market. In the future, this new sales model could also provide the foundation for new opportunities in additional markets, while also enhancing our network marketing success in existing markets.

In addition to our China initiative, we will also introduce a global customer program in an effort to provide broader accessibility to our LifeVantage products for personal consumption beyond our existing markets. We expect to begin this rollout, which will be organized by country and region, to conform to any necessary product approvals that are required. These products will be sold utilizing our e-commerce site and shipped from the United States.

Today, we also announced the launch of our network marketing model in Germany and plan to launch Taiwan later this year. Additionally, we’re pleased to report that we recently celebrated our formal opening of Québec. As you can see, there’s a lot going on at LifeVantage and we are excited to share more with you as each initiative is deployed. We see the mega consumer trends as a considerable opportunity to transform LifeVantage over the coming years.

THIS COMPANY HAS TURNED THE CORNER AND WILL NOW BUILD A VERY STRONG BASE OF SUPPORT!!!

STAY TUNED!!


Responses

  1. Isn’t this company a MLM? aka pyramid scheme

    • Chris, if MLM companies are pyramid schemes, then they would not be in business. LifeVantage has a great business, with amazing products that help a lot of people. They are growing their footprint globally, and are severely undervalued here.
      These are just my opinions, I raised money for this company in the 2008-2010 time frame. I know the story well.
      I look for companies that won’t get clobbered in a general downward move in the stock market. Companies with low earnings multiples will survive better in these downturns


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: