CVSL Rings the Closing Bell at NYSE + Named #1 Focus Stock
At the close of today’s yesterday’s session, sales reps from each of CVSL’s companies helped to ring the closing bell at the NYSE.
We think this was very telling in that CVSL C-level executives were not ringing the as we would typically see when a company gets such an opportunity. Instead of taking the glory of such an opportunity for themselves, they sent sales leadership from the partner companies along with some of their top sales reps. This speaks volumes to the mindset of CVSL management and further illustrates this management team’s commitment to investing in the true drivers of value in this company – the sales force. This is just one more very high-profile example of how this management team “gets it” better than any other in the direct sales space and comes just two weeks after acknowledging on the earnings call that the board had already hired an expert to help develop more creative ways to get CVSL stock into the hands of its sales force. Bravo CVSL leadership.
We also think it is fitting that CVSL would be part of ringing the closing bell on one of the most bullish trading sessions (Dow up 600+) in the history of the NYSE. We believe this is a harbinger of things to come for CVSL and we feel that the strides management has made over the last 90 days justifies our making CVSL the Groove’s #1 Focus stock. We are making CVSL our #1 focus stock today as we believe that the rally in CVSL shares since we first introduced it in June at $1.09 has been the equivalent of a “dead cat bounce” and that the stock has not yet begun to reflect that the company’s difficulties in Q1 have been addressed, that the company’s largest divisions have turned a corner and that each significant line of business is now growing again. The stock continues to be overlooked by investors and currently trades in the $1.55 range (yesterday’s closing price) despite the remarkable improvement in all aspects of the company’s operations verses where we were back in January when the stock traded much higher.
In summary, CVSL is in a much stronger position from an operational and financial standpoint than they were when the stock was trading above $6 per share earlier this year, but the shares have continued to languish in the $1.50- $1.60 range. We see any opportunity to buy this stock below $2 per share as a steal and we fully expect many more investors to discover the CVSL story very soon and events like yesterday’s ringing of the NYSE bell just gives the CVSL story that much more exposure. We believe that Groove participants would do well to buy more shares at current prices. CVSL sales reps who have started to participate with the Groove community should also jump on this opportunity to buy CVSL shares at these prices and make sure that other sales people in your organization are aware of this opportunity. We think CVSL will be a great investment opportunity for many years to come if management continues to execute at this level, but we don’t think the opportunity to buy the shares below $2 will be with us for much longer.
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