Element Nutritional Sciences (ELMT.CN)  is an innovative and research driven Canadian nutraceutical company specializing in the development of science-based products for the global consumer packaged goods market, with a portfolio focused specifically on men and women over the age of 50. Element’s lead product, Rejuvenate, is a proprietary formulation that is clinically proven to assist in the rebuilding, restoration and rejuvenation of natural loss of muscle mass due to aging or other medical conditions.

As a man now past the age of 30, I find myself spending more on healthy food and supplements. Protein powder is a monthly expenditure. This is something I am seeing with my age group. Protein powder has always been big, but now just general supplements are also being bought increasingly. Perhaps the pandemic got people researching more on boosting the immune system?

My father is over 60. He is now taking a protein supplement and various other supplements. He is vegetarian so certain supplements are a must. B12, Iron, Magnesium, Omega 3’s and yes, protein. This is actually something that all vegetarians and vegans need to consider. My father is finding his energy levels definitely do increase with his protein supplements. My brother is a professional trainer and has a degree in Kinesiology. He has been pushing my father to up his protein intake. Simple but a game changer for my father. I understand the market and value that Element Nutritional brings.

The North American nutritional market is worth $50 Billion US and will just continue to grow. Element Nutritional Sciences says that 63% of consumers are looking for plant-based foods as a healthier source of protein.

Element Nutritional products stand out from the rest. Sugar free, low calories, organic plant protein source, and dairy free. With a consumer base that is more educated on nutrition, and is therefore more picky when it comes to what they purchase, Element Nutritional is catering to these demands.

And it appears to be working. On May 30th 2022, Element Nutritional Sciences reported record revenue for Q1 2022:

• Realized revenue growth of $2.3 million in Q1 2022, an increase of 559% versus Q1 2021, with a gross margin of 40%
• Expanded distribution through partnership with large retailers and brand accelerators including Publix, Pattern, Sam’s Club, and Walgreens
• Innovation pipeline now includes JAKTRX™ PROMINO, and Rejuvenate™ Muscle Activator, targeting high potential nutrition and consumer markets such as sports nutrition, orthopedics, immune health and oncology
• Improved operating income to $(0.8) million and net income to $(1.0) million
• Announced and closed its short form prospectus offering raising gross proceeds of $3.5 million.
• Secured automatic warehouse replenishment for its Rejuvenate™ ready to drink plant protein beverage at Sam’s Club, following Sam’s Club achieving full sell through of its first purchase order
• Accelerated sales on the Amazon platform through a partnership with Pattern Inc. (“Pattern”), the third largest global supplier to Amazon

More recently, the company announced the signing of a prominent certified clinical pharmacist. Dr. James LaValle signed an exclusive two-year agreement to represent the Company’s patented Rejuvenate™ and Promino™ products. He will appear in television and digital campaigns to highlight Element Nutritional’s unique product line. Dr. LaValle is the author of 19 books and over 200 articles, he has made over 1,000 media appearances, he has consulted for organization such as Proctor & Gamble and Bayer, and worked with athletes from teams such as the Toronto Maple Leafs, New England Patriots and Houston Astros. He was appointed to the Inaugural Dietary Supplement Information Bureau Board and was previously a Faculty of the Year award winner from the American Academy of Anti-Aging Medicine.

“We chose to partner with Dr. LaValle because of his excellent track record in the fields of nutrition and metabolism. Dr. LaValle understands the global opportunity in improving muscle health and is well acquainted with the research that supports the efficacy of the patented amino formulation that underpins our Rejuvenate™ and Promino™ products. In the next two years, we expect that Dr. LaValle with help generate awareness for Rejuvenate™ and Promino™ products and help consumers understand how Element can help them live their lives to the fullest.”

Record revenue and a big marketing campaign upcoming. Things look good for the company. What about the stock chart?

I have to say that all the technicals point to the beginning of a new uptrend.

The stock printed all time record lows on May 12th 2022 hitting $0.16. Since then, we have had a nice 100% plus gainer from those lows to the RECENT price. Much higher if you consider the recent highs printed on May 31st 2022.

Speaking about May 31st 2022, why did the stock close up 38% with a volume of 1,776,867 shares traded? The reaction to the record revenues. The market and investors like the numbers.

The break above $0.26 was crucial as it confirmed the reclaiming of what was resistance now turned support. The uptrend continues as long as we remain above $0.26. I smell another upwards leg coming, one that would take us above $0.44 and trigger another breakout. Lots of support levels below. I already mentioned $0.26, but there’s decent support at $0.33.

For those more technically inclined, Element Nutritional also confirmed a reversal pattern known as the cup and handle pattern. We also broke above a downtrend line. So many bullish confluences here indicating a new uptrend is beginning. Get excited folks. A close back above $0.44 takes us to $0.625. From there, the next resistance comes in at $0.815, then previous all time record highs.

Good technicals backed by strong fundamentals. Now it is all about maintaining this momentum.