Every day, we scour through North American-traded stocks looking for movers. Of course, once we see the movement, we check to see if it is news driven to try and gauge how sustained the movement could be.
Over the past couple of days, little Goodfood Market Corp. (TSX:FOOD) has come up on the radar as a leading TSX gainer. The rise has been on relatively low volume, which could suggests that someone, somewhere is adding to or starting a position. In fact, the Montreal-based meal-kit company has a pattern of being very low profile, rarely releasing news since coming public via a reverse takeover early in June and an associated private placement that put $19.6 million in corporate coffers.
The meal-kit industry has been in the spotlight lately with the IPO of Blue Apron (NYSE:APRN) and its subsequent collapse in share value from over $10 to around $5 currently. Analysts have been down on Blue Apron due to the competitive nature of the space and the company forecasting a net loss in the range of $121 million to $128 million for the second half of 2017 on sales of $380 million to $400 million.
Goodfood Market, who is focused on the nascent Canadian meal-kit industry, certainly is tiny compared to the Blue Apron figures (for both revenue and loss), but growing in its own right. As reported in July, the company experienced 592% sales growth to $6.43 million during the fiscal third quarter ended May 31, 2017 from $928,433 in the year prior quarter.
Adjusted net loss during that period increased to $860,830 from $194,350.
During the first nine months of fiscal 2017, revenues climbed 582% to $12.31 million from $1.81 million, while adjusted net loss was $1.49 million, compared to $568,742 a year earlier.
The company also added 10,000 new subscribers during the quarter, raising its total to 23,000.
While this is not a typical news-driven mover that we bring to our audience daily, this new TSX issue certainly is an industry that the markets are infatuated with and seems to be gaining a little bit of traction with a gain of 15.2% so far today at $1.90 per share.
