Huge revenues, increasing by leaps and bounds: if you’re going to invest in start-up companies for quick gains, you have to look for these things. This should be a non-negotiable part of your screening process – focus on companies with outstanding revenue growth, both now and projected for the future.

Legendary investor Benjamin Graham once said that the stock market is a weighing machine, particularly in the long term. By this he meant that good, solid, profitable companies will rise to the top and reward patient investors handsomely. But in some cases, if you pick your stocks carefully, the rewards can come fast and furious.

Take a look at the Very Good Food Co. (CSE:VERY, OTC:VRYYF) and you’ll see this principle in action. This is an emerging company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives.

After researching the company carefully and observing the revenue growth, I sent out the signal for VERY stock at CAD$1.29. I did this not only because I believe in the company, but as a pre-earnings play. Honestly, it didn’t take a rocket scientist to see that this was going to be an earnings blowout.

Just take a look at the highlights of Very Good Food’s second-quarter stats:

• Revenues of $1,100,816 million, an increase of 225% quarter-over-quarter and 395% year-over-year
• Gross profit margin of 42% over the six-month period, marking an improvement from 34%
• Total assets of $6,757,062, including a cash balance of $3,508,826
• Outstanding debt was reduced by $1.1 million

You can easily predict what happened next to the stock price:

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Courtesy: Yahoo Finance

People sometimes want to compare Very Good Food to Beyond Meat, but when you look at the numbers, you’ll see that Very Good Food is the better buy – for instance, you can compare the 42% six-month gross profit margin to Beyond Meat’s recently announced 29.7% gross margin on revenues.

CEO Mitchell Scott has every reason to be proud of Very Good Food’s quarterly results. “We were extremely pleased with our financial performance this quarter, with revenue growth and gross margins both producing industry-leading results. With a very healthy balance sheet and quickly growing demand for our products, we are in a position of strength as we charge forward with our international expansion,” he explained.

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That last part is key as Very Good Food is poised to grow, not only in terms of market share but also geographically. The CEO stated, “Over the coming quarters, investors can expect to see significant progress on our next phase of growth, as we transition to becoming a much larger company with global ambitions.”

You’d have to be crazy to sell your shares now, even if you got in prior to the blockbuster earnings release. When Mitchell Scott said his company is charging forward with international expansion, he wasn’t kidding around.

In fact, this expansion initiative is already under way. The news dispatch just came across my desk: Very Good Food officially announced that the company has already purchased its first production facility outside of Canada.

The facility, located in California, will produce 2,000,000 pounds of premium-quality plant-based food products each and every month. The company already operates a bustling manufacturing facility in Victoria, Canada, which produces 32,000 pounds a month and is projected to raise that number to 76,000 pounds in a matter of months.

On top of all that, there’s the Vancouver facility that Very Good Food recently announced – which, starting in H1 of 2021, is set to produce 400,000 pounds of plant-based food products per month.

Given those incredible numbers, you can see how the CEO’s global ambitions are already coming to fruition. Consider the revenues that will come in and what the next earnings report will look like – all I can say is, you’d better take action now if you want to participate in the run-up that’s about to happen.

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Best Regards,

Lior Gantz
President, WealthResearchGroup.com