Avivagen Inc. (VIV:TSX.V; VIVXF:OTCQB) is the company that produces antibiotic free animal feed and the demand for its product is improving with the company getting good orders—consumers don’t like artificial meat products and have been rejecting them where they have been tried out.
The one cloud on the horizon for the company of course is the Globalists’ push to eliminate meat for the masses, to be replaced by insects, or nothing or even each other, but that will take time and for now the prospects for the company are improving and of course the globalists will want to continue eating the finest quality meat products themselves even as the proletariat are munching their way through tasty plates of crickets.
They will put this change into effect through the price mechanism, since the masses won’t be able to afford $500 for a piece of steak, but to the globalists this will be chump change.
Following this logic we can see that there will still be a market for the company’s products even if the masses are weaned off meat, since animals will continue being farmed, albeit in much smaller numbers, for the elites who will be happy to pay massively inflated prices.
The outlook for the company is improving. In addition to orders coming in, management has been cleaned up with positive changes and the company is implementing a Smart marketing program and all this together is making it an attractive takeover candidate, given its current low valuation.
Just how cheap the stock is historically can be seen on its long-term 20-year chart below. Way back in 2006 – 2007 the stock price was more than 20 times its current level.
This year it has ground lower and lower, making new lows but the strong Accumulation line implies that a reversal is incubating.
Zooming in somewhat we can see on the 8-year chart the bear market from the 2016 spike top in more detail. It tried to establish a base from the start of 2019 through mid-2021 but then broke lower again into another downleg that took the price to a very low level and this downleg is now believed to have run its course, especially given the continuing strength of the volume indicators—On-balance Volume is shown on this chart.
On the six-month chart we can see recent action in detail. We had earlier expected the obvious line of support at the CA$0.18 level to hold.
It didn’t but the break lower looks like a “head fake” especially given the positive volume pattern and volume indicators.
So this break lower is viewed as an opportunity to add to positions or make fresh purchases at an even better price—it looks like it is very close to breaking back above the CA$0.18 level.
The conclusion is that Avivagen looks like a Strong Buy here for all timeframes on both fundamental and technical grounds. So we stay long and this is a good point to add to positions.
Avivagen Inc website
Avivagen Inc. closed at CA$0.18, $0.135 on August 5, 2022.
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CliveMaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
Disclosures
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None.
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