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Nepra Foods ( OTCMKTS: NPRFF ) is a vertically integrated food company with an operating production facility and headquarters just south of Denver Colorado. Nepra was formed in 2016-2017 and was the union of 2-3 different projects. The CEO of Nepra is Chadwick White, who invented Udi’s Gluten Free bread in 2008 and sold it for 125 million dollars to Boulder Brands, who subsequently sold it to Con Agra Brands. Udi’s Gluten Free is still one of the top three gluten free breads, 15 years later. Chadwick has developed a new gluten free bread, and he has licensed production to a 3rd party bakery. It “will be initially distributed through KrogerTM, PublixTM, and MeijerTM representing over 2,600 retail locations across the country.” (the news release is linked below) In addition to this white bread, a few different varieties of breads, hotdog and hamburger buns, rolls, cakes, cookies, and even tortillas are expected to follow. In the past 6 months, Nepra has produced and started selling a gluten free pasta.This pasta was recently awarded a gold medal by the American Masters of Taste panel, and is being sold on the Nepra website (after lighting quick SKU acquisition by Chadwick White, who obviously knows the business) The pasta has also been served and very well recieved in a high-caliber Denver restaurant for the past 3 months. You can read user comments about the pasta on Virgilio’s Facebook or Instagram page. These reinforce that this is marketable product, (it’s sold at an award winning restaurant) and that the pasta has already won an award for good reason. Pasta is normally made out of wheat, the same as bread, right? The fact that the pasta has been so well recieved bodes extremely well for ALL other products that are already in motion, (even to include the tortillas). Nepra is vertically integrated into their sector because the core of their business is not even selling gluten free bread or ProPasta – it is an ingredient development and wholesale business. They sell flour and other baking products – specificly formulated and protected products, to a variety of companies. They currently supply many different companies, but are not at liberty to discuss all of their clients One of the early ones was Quinn Snacks, who is having great success with gluten free pretzels. To validate the importance of this vertical integration, and the future size and profitability of the company, Nepra recently signed a contract with Scoular, the 47th largest private corporation in America. If you haven’t heard of the 47th largest private corporation before, you are not alone. There are many private corporations in the United States that are almost completely unknown, outside of their own sector. I’m guessing you haven’t heard of the 16th largest corporation, Gordon Food Services… Anyways, this is a huge deal for a company with a 2 million dollar market cap, and again, it just adds credence and credibility to Nepra, who already has sells products to other companies. I first did a quick evaluation of the company in late 2022 and found that the latest significant news release was about the commercial production of an egg substitute. This news release was no different than any other food venture company, or really, any other company at all. EVERY company that wants to sell a product like this is going to say it is the best, game-changing, revolutionary, etc. This is just a bunch of arm-waving with no substance. I got excited and started buying a few months later (in early 2023) when they announced this news release with the “2,600 retail locations.” So, if you read that news release carefully, it’s not just the egg replacement they are talking about, it’s the actual loaf of bread. Chadwick has created a new gluten free bread, and he has licensed a 3rd party bakery to sell it, while retaining all proprietary rights. (It seems like he has been down this path before) Chadwick talks a little bit about this in an investor conference call, which is linked below. So,
But – the stock went down. Weird, huh? Nepra has now spent 3-4 months in Wyckoff’s “accumulation phase,” and it looks like we just passed the spring. This will likely be amplified with the upcoming ProPasta announcement and updated financials, among other things. Nepra’s chart: And here is a chart of a typical Wyckoff Accumulation Phase: For reference: Wyckoff Accumulation: https://tradingcoach.co.in/richard-wyckoff-accumulation-distribution-phase/ Wyckoff Accumulation: https://stockcharts.com/articles/wyckoff/2015/06/accumulation-phase-absorbing-stock-like-a-sponge.html To back up this stock has been in the accumlation phase (by someone other than myself, lol) the share price has all the typical games being played (more than all other stocks) and they paint the tape at the close. Friday, the share price was at 0.055 cents an hour before close – and then, of course, someone painted it down to 0.04 cents. If you get nothing else from this post, the accumulation phase is very interesting – but of course – just because a stock is trading sideways like this – doesn’t mean it’s going to go up. lmao. Be careful. Disclosure: I have not been paid for this article and I do not work for Nepra or any associated entity – I am only umployed by the US Government, of all things. I do own Nepra shares, and I have been lucky enough to accumulate just over 4% of the company, which is wild. Maybe I own the employee breakroom and a small hallway, who knows. I always wanted to own a loading dock. I am only sharing this information because I am done accumulating. I do plan on selling ½ of my shares, and then riding the remaining free shares into the sunset. Chadwick is an accomplished businessman he seems driven to build and create, even after selling Udi’s Gluten Free. Oh – here’s the investor conference call – this dude works weekends. lol. https://drive.google.com/file/u/0/d/1Ioc53HC5PsGJ9V4a9DQnXcXRi7O2nap5/view?usp=share_link&pli=1 submitted by /u/CoconutLife to r/pennystocks |