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$EMGE Best Cheap Stocks On The Rise

OTC:EMGE   Emergent Health Corp.
Emergent Health Corp (OTC: EMGE) is focused on the discovery, development, and marketing of regenerative medicine, neutraceuticals, and phytonutritionals. Through its line of products, EMGE believes it could emerge as a leader in the regenerative medicine field. Following the execution of an LOI with Regen Biowellness, EMGE stock rallied more than 200% intraday thanks to the bullish sentiment surrounding this deal. With the company constantly expanding its business, EMGE stock could be one of the best cheap stocks to buy this year.

EMGE Fundamentals

Through its portfolio of patented products, EMGE is aspiring to become a major player in its industry. These products include Hungarest for weight loss, Vita-Stim for boosting the immune system, as well as Neuvitale which helps in adult stem cell propagation.

While such products already have high demand, EMGE expanded its offering to include Infinity Plus Multi that supports adult stem cells, telomeres and anti-aging oxidants. By offering this new product, EMGE is entering into the growing anti-aging market. Given that the anti-aging market is expected to grow to $60.9 million by 2027, EMGE has the potential to grow financially in the future if its product is able to secure a significant share in this market.

PharmaZu

Although the company is specialized in the human medicine market, EMGE ventured into the veterinary medicine market by acquiring PharmaZu Corp. Focused on pet medicines, PharmaZu provides e-commerce products and services related to pet pharmacy, vet telehealth and pet wellness. Given that pet health awareness increased significantly over the past years, PharmaZu has the potential to become a leader in the pet medicine industry based on its platform. Since the veterinary medicine market is expected to grow to more than $50 billion by 2028, this acquisition could be setting EMGE up to become a major player in the pharmaceutical industry as it now offers medicines for both humans and pets.

Shortly after this acquisition, PharmaZu partnered with DynaCord, LLC for the co-development and exclusive marketing and distribution for several pet treatments targeting arthritis, joint care, wound care, and inflammation. Based on this agreement, DynaCord will be the exclusive manufacturer and PharmaZu will be the exclusive distributor of these treatments. Considering that pet spending is projected to reach $275 million by 2030, PharmaZu could provide EMGE with major revenues in the future. In light of this expansion into a new market, EMGE could be one of the best cheap stocks in the long-term.

Fusion Specialty Pharmacy

Looking to expand its offerings, EMGE signed an LOI to acquire Fusion Specialty Pharmacy subject to financing and execution of definitive agreements. A nationally accredited compounding pharmacy, Fusion is licensed in 27 states and develops medicines that improve compliance and reduce the cost of healthcare. Fusion also offers personalized services to its patients where it works with their physicians to develop a customized formula to treat these patients.

With this in mind, acquiring Fusion is expected to allow EMGE to fulfill orders in all states and expand the online pet medicine offerings through PharmaZu. Since Fusion realized $3 million in revenues in 2021, EMGE could have a major revenue stream under its umbrella once the acquisition is closed this quarter. In light of this, EMGE could be one of the best cheap stocks to watch this quarter in anticipation.

Regen Biowellness

Following these acquisitions, EMGE executed an LOI to acquire Regen Biowellness – a product distributor in the regenerative medical field. By acquiring Regen, EMGE has the potential to become a major player in the OTC human and pet products field. With this in mind, EMGE will be able to commercialize Regen’s existing portfolio of patented products upon the completion of the acquisition.

One of these products is Immuniain which is an FDA cleared immune booster. Meanwhile, Regen has an FDA approved medical device – Silverpro – in its pipeline. With several products pending patent under Regen’s umbrella, EMGE could become one of the best cheap stocks if these products receive patents.

Despite the potential of the company’s expanding pipeline, investors are more bullish on the expected appointment of Regen’s president Jim Morrison to EMGE’s management team. Considered to be a legend in the personal care industry, Morrison was the president of L’Oréal where he oversaw an average growth of more than 20% annually.

In addition, Morrison was responsible for L’Oréal’s lucrative acquisitions of Redken and Matrix. At the same time, Morrison worked with several celebrities in the beauty space including Kylie Jenner, Britney Spears, and Katharine McPhee. Given that this acquisition is expected to close upon the dismissal of Regen’s bankruptcy petition this month, EMGE stock could be one of the best cheap stocks to watch in anticipation.

EMGE Financials

Looking at EMGE’s financials, the company’s assets declined to $283.9 thousand in Q1 compared to $411.1 thousand in the previous quarter. Meanwhile, EMGE reported an increase in liabilities to $421.6 thousand from $367.5 thousand in the previous quarter. In terms of revenues, EMGE reported $14.2 thousand and had $345.3 thousand in operating costs. Based on this, EMGE reported a $334.3 thousand net loss.

Technical Analysis

EMGE is currently trading at $.0163 with supports at .0137 and .0082. Meanwhile, EMGE shows resistances near .0194, .0249, and .0318. After signing an LOI to acquire Regen, EMGE soared by as much as 200% intraday thanks to the expected appointment of Morrison to the management team. With this in mind, EMGE could witness a similar run when the acquisition is closed later this month.

As for short-term traders, EMGE recently retested its 50 MA support and is approaching the 200 MA resistance. If the stock continues to witness high trading volume, EMGE could break through this resistance and reach a level near $.02. Meanwhile, failure to break through this resistance could send the stock to retest its support which could be a good entry point for bullish investors.

In light of the EMGE’s parabolic run, accumulation went on a steep downward trend due to investors taking profit before witnessing a slight uptick. Meanwhile, the MACD is bullish to the upside. The RSI cooled off from 71 to 54 which could signal a continuation of EMGE’s run. As is, EMGE has an OS of 55 million and a float near 46.6 million.

EMGE Forecast

With the company expanding its offerings of human and pet OTC products, EMGE’s acquisitions could be setting the company up for financial growth in the future. Considering the company’s acquisition of Fusion, EMGE is well-positioned to grow PharmaZu by increasing its e-commerce platform’s offerings. Meanwhile, the anticipated acquisition of Regen could be a significant deal since Regen already has a pipeline of patented products and has several products pending patent. If these products are granted patents, EMGE could be positioned for substantial growth in the future.

Moreover, Regen’s president Jim Morrison is expected to join EMGE’s management team upon the completion of the acquisition. Considering his success as L’Oréal’s president, investors are bullish Morrison’s appointment could help the company grow its business significantly. Given that this acquisition is expected to be finalized later this month, EMGE could be one of the best cheap stocks to watch in anticipation.

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