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GPO Plus, Inc. Growth Pace Accelerates, Launches Mission To Expand Retail Presence In Eligible Yesway And Allsup Locations ($GPOX)

GPO Plus, Inc. Growth Pace Accelerates, Launches Mission To Expand Retail Presence In Eligible Yesway And Allsup Locations ($GPOX)

GPO Plus, Inc. (OTCQB: GPOX) stock may present a value investment opportunity that is too good to ignore. Yes, that's a decidedly bullish sentiment. However, it's supported by tangible evidence showing that GPOX continues to expand its revenue-generating footprint to make its retail presence more pronounced and, importantly, from a valuation perspective, can lead to another breaking of previously set performance records. 

Contributing to that presumption is a deal made with hemp smokables company Hempacco Co, Inc. (NASDAQ: HPCO) that can expedite GPOX capitalizing on an estimated $1 trillion industry. And it's expected to get even bigger, with consumer preference trends showing increasing interest in hemp-based products that offer a satisfying alternative to nicotine tobacco. The deal, which GPOX said will be facilitated through its distribution division Distro+, will promote, market, and sell Hempacco's entire portfolio of hemp products in Yesway and Allsup's stores across the United States. That's no small opportunity.

Yesway is one of the fastest-growing convenience store operators in the United States. The better news is that the deal strengthens GPOX's previously announced retail partnership, where it highlighted plans to introduce The Feel Good Shop+ in eligible Yesway and Allsup locations. The Feel Good Shop+ is an innovative "store within a store" retail concept offering an extensive range of CBD and other hemp-derived products. GPOX revenues could get a quick boost, especially with GPOX placing popular Hempacco products, including The Real Stuff Hemp Smokables, Rick Ross's Hemp Hop Smokables and Wraps, Cheech & Chong Smokables and Wraps, and Snoops Dogg's Dogg lbs brands.

Growth By The Numbers

If so, they will add to recent record-setting operating performance. GPOX announced the best-ever revenues in its 1Q for FY/2024 of $970,735, beating its forecast by roughly 12% and crushing the prior quarter's revenues by 126%. That performance followed the over 320% sequential revenue growth. GPOX reporting FY/Q4 revenues of $430,000 represented an over 320% increase compared to the three months ending April 30, 2023. Revenues aren't the only things getting larger. 

The store count is as well. GPOX is now operating over 570 locations in several states, a number expected to increase to 1,000 by the end of its current fiscal year. There's more good news. The average revenue contributions per location is surging, evidenced by the sales from the first 100 stores receiving the new "White Glove Direct Store Delivery" service offered through GPOX's Distro+ division, soaring over 365% from $580 per location to $2,120. That growth is being met with a GPOX service model and infrastructure that is more efficient than ever, resulting from creating what the company calls a Mini-hub business model, a hub and spoke design that leverages low-cost efficiencies to generate high store revenues. 

In particular, GPOX is realizing benefits through its mentioned "White Glove DSD," a hands-on, full-service business model that GPOX said has been an integral part of driving average sales per unit to record levels. That makes sense. The hands-on service approach facilitates enhanced product offering and allows GPOX to maximize the intrinsic value of its in-store concept, "the Feel Good Shop+," which offers customers CBD-inspired health and wellness products. Moreover, the GPOX team presence is leading to a potential windfall of revenue-generating opportunities by being on-site to provide clients with a service and benefit that others don't- primarily filling a product manufacturing and delivery gap for the 15% - 20% of items not typically provided by primary vendors. Technology enhancements are fueling the back end of that opportunity. 

GPOX announced live testing, implementation, and the rollout phase for MSRP+, its proprietary software empowering order management, logistics optimization, lead generation, sales analytics, accounting, inventory management, and e-commerce for DISTRO+. Those enable a strategy that maximizes intrinsic strengths, particularly those related to manufacturing and distributing consumer products, fitting well into the GPOX strategy to increase convenience store and specialty retailer client count. 

Attracting Clients Through Service

So far, GPOX has said that the service is leading many of its retail partners to ask what additional products can be provided through this uncomplicated and comprehensive GPOX service solution. That's helped GPOX model for significant near-term growth, saying its combined service differences should contribute to opening at least 500 new locations in its fiscal year. Even better from an investor's perspective is that by utilizing proprietary technology, real-time data, and efficiencies from its hub and spoke business services model, GPOX revenues from new and existing sites could fall faster toward the bottom line. And there could be plenty more of it to drop. 

GPOX believes increased product offerings could increase average sales per convenience store location to over $3,000, about 40% higher than current. Contributing to that cause, GPOX highlighted executing its plans to introduce proprietary new products, such as Yuenglings Ice Cream flavored gummies and High-Cloud gummies, expected to generate roughly 40% gross margins. The gross margins for general products are also impressive, typically between 20% - 35%. Strength in both should accelerate GPOX reaching cash-flow and/or bottom-line EPS, potentially by the end of this new fiscal year. They should get additional help. 

GPOX said it expects to onboard roughly 258 new locations in Texas, Iowa, and Kansas by the end of this year and another 123 locations throughout New Mexico in early 2024. With plans to serve the entire product line at each site, using a store-average sales estimate should add appreciably to near-term revenue streams. It could increase further from its mission to fill a service gap. According to GPOX, most retailers get about 80% - 85% of their products from just a few distributors, with the remaining products sometimes represented by dozens of separate vendors. 

As one might expect, that's a significant pain point for most corporate retailers, especially gas stations and convenience stores that sell potentially thousands of different products. For management, it's a tall order to handle. It's where GPOX intends to shine by using its White Glove DSD service to mitigate specialty retailers' challenges of identifying and qualifying new products, ensuring quality, and managing delivery. In the best case, GPOX believes its White Glove DSD service can help to eliminate 100% of the challenges faced, a stat that is doing more than attracting new business; it's contributing enormously to the growth of serviced locations by simplifying and optimizing client operations. 

A Growth Mission In Progress

That could lead to an already impressive growth trajectory to steepen. That's likely from GPOX's offering to do the heavy lifting for clients, including price negotiation, meeting minimum order requirements from large manufacturers, and providing uncompromising, hands-on service, from order placement to shelf stocking to end-sales management. Recent quarterly performance shows that that strategy is shifting GPOX's growth pace from hyperspeed to warp. 

The only thing lacking, which is not necessarily bad for investors since it exposes opportunity, is for the share price to follow that lead. By all measures, they should. GPOX is posting consecutive record-setting operating performance, is appreciably growing its retail presence with top-tier clients, and has simplified operations to make revenues more impactful to its bottom line. 

In other words, the disconnect between the GPOX share price and the groundwork laid, completed, and pending may be worth seizing. In fact, with GPOX better positioned today than when it scored its 52-week high of $0.29, about 81% higher than current, doing so sooner rather than later may be the best course of action.

 

 

IMPORTANT NOTICE AND DISCLAIMER: All investments are subject to risk, which must be considered on an individual basis before making any investment decision. This paid advertisement includes a stock profile of GPO Plus, Inc. (Nasdaq: GPOX). Primetime Profiles Direct, a property of Shore Thing Media Group, Llc. is an investment newsletter being advertised herein. This paid advertisement is intended solely for information and educational purposes and is not to be construed under any circumstances as an offer to sell or a solicitation of an offer to purchase any securities. In an effort to enhance public awareness, Shore Thing Media Group, Llc. was retained by Spyder Growth Strategies, Llc to create and distribute digital content for GPO Plus, Inc. Spyder Growth Strategies Llc compensated Shore Thing Media Group, Llc., and/or, its parent company, $5,000 to complete and distribute these services. This advertisement is being disseminated for a period of one month beginning on 12/4/23 and ending on 12/31/23. Shore Thing Media Group, Llc. owners, officers, principals, affiliates, contributors, and/or related parties do not own, intend to own, sell, or intend to sell GPO Plus, Inc. stock. However, it is prudent to expect that those hiring Shore Thing Media Group, Llc, including its owners, employees, and affiliates may sell some or even all of the GPO Plus, Inc. shares that they own, if any, during and/or after this engagement period. If successful, this advertisement will increase investor and market awareness of GPO Plus, Inc. and its securities, which may result in an increased number of shareholders owning and trading the securities, increased trading volume, and possibly an increase in share price, which may be temporary. This advertisement does not purport to provide a complete analysis of GPO Plus, Inc. or its financial position. The agency providing this content are not, and do not purport to be, broker-dealers or registered investment advisors. This advertisement is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a registered broker-dealer or registered investment advisor or, at a minimum, doing your own research if you do not utilize an investment professional to make decisions on what securities to buy and sell, and only after reviewing the financial statements and other pertinent publicly-available information about GPO Plus, Inc. Further, readers are specifically urged to read and carefully consider the Risk Factors identified and discussed in GPO Plus, Inc. SEC filings. Investing in microcap securities such as GPO Plus, Inc. is speculative and carries a high degree of risk. Past performance does not guarantee future results. This advertisement is based exclusively on information generally available to the public and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, Shore Thing Media Group, Llc. cannot guarantee the accuracy or completeness of the information and are not responsible for any errors or omissions. This advertisement contains forward-looking statements, including statements regarding expected continual growth of GPO Plus, Inc. and/or its industry. Shore Thing Media Group, Llc. note that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect GPO Plus, Inc. actual results of operations. Factors that could cause actual results to vary include the size and growth of the market for GPO Plus, Inc. products and/or services, the company's ability to fund its capital requirements in the near term and long term, federal and state regulatory issues, pricing pressures, etc. All trademarks used in this advertisement are the property of their respective trademark holders and no endorsement by such owners of the contents of this advertisement is made or implied. Shore Thing Media Group, Llc. are not affiliated, connected, or associated with, and are not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made to any rights in any third-party trademarks. Additional disclosures and disclosures can be found at https://primetimeprofiles.com/disclaimer/.

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