Fresh Vending International, Inc. (OTCMKTS:VEND) Chugs Along with New Paper Mailer
Fresh Vending International, Inc. (OTCMKTS:VEND) is making quite a ladder upward, again surpassing the $3 levels. VEND added a further 7% on Tuesday to $3.02, on buying volumes that reached $2.7 million after consistently rising in the past two trading weeks. VEND has been ready with its usual press releases coming in every few days, and despite the fallout from promotions in the past, the ticker gained a foothold again. The question now is how long the higher price would hold.
The only difference from the promotion-fueled climb back in November is that now, the price growth is less steep. Investors’ forums are mostly silent about that company. While VEND itself constantly boasts that it is expanding the franchise network, it still remains to be seen how well the financials reflect that in the new year.
For now, VEND still focuses on healthy snacks, and surprisingly, has not caught on to the trend for other companies to add at least a mention of cannabis products distribution. AVT, Inc. (OTCMKTS:AVTC) is also a vending company that operates a variety of specialized machines, and it jumped significantly on plans to redesign some of those machines to supply medical forms of marijuana. AVTC trades around $3.90 after a few choppy days.
And there are also rumors that VEND is using again the old strategy of advertising itself through a paper mailer- which would explain in part the slow, steady climb as the message reaches more doorsteps
The Tim Lento site registers a pump with a $1.3 million budget paper mailer that first started on December 17th. And Twitter trader accounts show that VEND may have expanded the campaign to a price of $1.8 million, as new brochures in color are enticing investors.
In the mailer, VEND does a little trick, mentioning Medbox, Inc., a large pharmaceutical vending machines operator- and suggesting it could have comparable success.
But VEND has little original to offer, as ordinary machines could be easily restocked with the much-touted healthier versions of convenience foods.
Still, the cannabis sector has great strength, lifting up formerly floundering restaurant company Latteno Foods, Inc. (OTCMKTS:LATF) once it changed its business model. LATF is struggling again to remain at the double-zero levels, as in the past days it slipped a bit.
If you like VEND for its short-term climb, keep in mind that it is unpredictable how long the paper mailers will work their magic. Choose your time frame well, so as not to get caught in the reversals that happened about a month back and will almost certainly happen in the near future.