Blueberries, Gold Bond, Ovaltine and Obesity: The Makings for a Very Good Story (Part 3)

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This is the third and final article in a series. To read the first article, click here: www.benzinga.com/node/2613801. To read the second article, click here: www.benzinga.com/node/2615863. In the previous article, we were left with the question of what was so exciting about a small laboratory in Colorado that had prompted the investment of a billionaire named Dr. Phillip Frost.
As it turns out, all of that legacy business provides Chromadex
CDXC
one very important asset: information flow. As Dr. Phillip Frost continued explaining, Chromadex is located at the intellectual intersection of everything happening within the nutraceutical industry. If a laboratory suddenly orders a bunch of Compound A, Chromadex knows. If twenty other laboratories order Compound A, Chromadex knows. If a bunch of secondary testing is completed on an existing product on the market, Chromadex knows. As the nutraceutical industry evolves, Chromadex receives real-time updates and order flow about the essential building blocks for almost every nutraceutical product in the U.S.
Wake-Up Call
That is interesting indeed. Something like that might just be enough to convince a retired millionaire who sold massive brands like Ovaltine and Gold Bond to join the team. Which he did, after giving the company $1 million out of his personal savings. What would you do? Say you were a business leader who you knew that a chemical compound was suddenly being ordered en masse by major labs around the nation who were also requesting urgent quality tests? Would you scratch your head? Would you, perhaps, walk down to your lab and ask a few colleagues what they thought about the compound and its possible uses? Without a doubt. See, Dr. Frost knew that Chromadex's legacy business was only exciting for one reason: information flow. It generated cash flow for the rest of the business, sure, but the real-time pulse on the nutraceutical market was the good stuff. Up to that moment, that corporate story had not been told about Chromadex. Every normal investor evaluated the company using conventional metrics like revenue growth or earnings per share. Actually, Chromadex was (and is) something quite different altogether. Chromadex is an intellectual property investment. Moreover, the intellectual property is not specific ideas, products, services, or patents. It is the continuous ability to know what is happening in nutraceuticals right now. Oh, and blueberries.
Conclusion
We never got to blueberries, did we? In all this talk about information flow, billionaire Dr. Frost, and information flow, blueberries never made it into the story. Well, we will have to save blueberries for another time. Blueberries are healthy, and Chromadex is doing some interesting things with blueberries; but alas, the conclusion to this three-part series is already far overdue. You, the reader, have been patient enough by reading this far. For now, at least you know what is really happening behind the scenes at a little company called Chromadex, a little company that everyone thinks is a basic testing laboratory but is actually an information hub about everything nutraceutical. In conclusion, what will Chromadex do with its knowledge? What shareholder value can it create? What has its laboratory done with the knowledge that they have collected from insiders in the nutraceutical industry? For another time, dear reader.
Epilogue
Do you remember when Dr. Oz said that açai berries were good for you and supported weight loss? Remember when açai berry products started popping up all over the place as demand exploded and sales skyrocketed thousands of percentage points? In case you never knew where it all started, the açai really can be traced to Dr. Oz's TV announcement. Did you also know that a few months later, after no scientific study could prove that açai berries had any significant correlation with weight loss, Dr. Oz retraced his statement and
publicly apologized
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on the Oprah Winfrey TV show? Wouldn't it be interesting, then, if there would ever be any
verified, scientific studies
about the weight loss effects of a natural compound within berries? Maybe not as prevalent in açai berries but, perhaps, blueberries?
This is the third and final article in a series. To read the first article, click here: www.benzinga.com/node/2613801. To read the second article, click here: www.benzinga.com/node/2615863.
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Posted In: Small Cap AnalysisMediaTrading IdeasDr. OzOprah WinfreyPhillip FrostUSDA
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