Research Reports

Verity Corp. (OTCQB: VRTY) Analyst Report

There is nothing we like better than discovering a company near its 52 week lows with a low public float (only 5.07 million shares) and only 9.2 million shares issued and outstanding  with increasing trading volume AND a great business plan in a hot sector.  The pick is Verity Corp(OTCQB: VRTY)  an agricultural services company which assists farmers wanting to move to non-GMO food production.  

If you have not heard about GMO, you will–Guaranteed.  GMO stands for “Genetically Modified Organisms”–basically genetically altered crops. There is a rapidly growing concern about the health of the food produced with GMO.  And consumer demand is increasing for non-GMO food and the labeling of GMO foods on the grocer’s shelf.  Whole Foods Market (http://media.wholefoodsmarket.com/news/whole-foods-market-commits-to-full-gmo-transparency) announced they will require all their vendors to label their products GMO or non-GMO. But everyone knows that Whole Foods is interested in increasing their non-GMO offerings and are actively committed to steering their vendors to non-GMO sources. In other words, major companies and grassroot campaigns to enact GMO labeling laws are increasing Verity’s target markets.

Into this breach comes Verity Corp–a sustainable agriculture company gaining a reputation as non-GMO experts that help farmers transition to non-GMO farming. These farmers see that non-GMO crops will be in greater demand with premium pricing and are needing assistance in moving back to sustainable non-GMO crop production. With 93% of corn produced in the US currently GMO, the shift to more non-GMO translates into a huge opportunity for Verity Corp (ww.veritycorp.com)  The market is coming to Verity and the word is getting out. Verity has been highlighted in the New York Times (www.nytimes.com/2013/09/20/business/misgivings-about-how-a-weed-killer-affects-the-soil.html?hp ) and recently highlighted as non-GMO agriculture experts (www.non-gmoreport.com/articles/may2014/ag-experts-helping-farmers-switch-to-non-GMO-sustainable-production.php) .

Verity Corp has customers in over 37 states and have three facilities — in South Dakota, Iowa and Georgia. Since the beginning of the year, the company has launched a number of high margin proprietary products that promise to have an effect on their bottom line going forward.

But what really attracts us to the Verity story goes back to

  • Very low public float of 5.07 million shares and only 9.2 million shares issued  and outstanding
  • 52 Week Trading Range $0.14-$0.90 (now at $0.22)
  • Rapidly growing market sector in agriculture
  • Technical Chart shows Breakout at 0.227 (50 Day Moving Average)

Check out Verity’s website: http://veritycorp.com/news/

We are feeling very good about this one short and long term.