The Very Good Food Company Is a 10X Stock in the Making

As a hypergrowth investor, I spend a large portion of my time analyzing emerging small-cap stocks that could turn into the “next big thing.” I’m constantly searching for big 10X winners and the next Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Facebook (NASDAQ:FB).

"Vegan" spelled in vegetables against wooden backdrop.

Source: Shutterstock

Indeed, I’ve found more than a few 10X winners. Like Advanced Micro Devices (NASDAQ:AMD) back in 2015 when it was a penny stock, or Chegg (NASDAQ:CHGG) back in 2016 when it was below $5. Or Shopify (NYSE:SHOP) and Square (NYSE:SQ) in 2017 when those stocks were below $100 and $20, respectively, or Nio (NYSE:NIO) and Tesla (NASDAQ:TSLA) in 2019.

Right now, I think I’ve found my next big 10X winner: a tiny vegan meat company by the name of the Very Good Food Company (OTCMKTS:VRYYF).

I alerted my Daily 10X Stock Report subscribers about VRYYF stock back in early October. Since then, VRYYF stock has soared as much as 250%.

Sure, that’s a fantastic return in less than a month. But I think this rally in VRYYF stock is just getting started — and that long-term, this stock is going to rally by more than 1,000% (to learn about more potential 1,000% winners, click here).

Here’s why.

A Plant-Forward Future

I used to be like a lot of you; reading headline after headline about the rise of veganism … and I’d laugh. I’m a big meat-eater. I enjoy steak dinners and fast food burgers. Which meant I couldn’t see past my own biases to envision a meat-free future. That is, until I saw the potential in the vegan megatrend.

In the past year, dozens of my close friends have gone vegan. Star athletes and celebrities — like NBA superstar Kyrie Irving and Tennis legend Venus Williams – have taken the vegan plunge. Pretty much every fast food chain has rolled out some type of vegan burger or chicken sandwich. Heck, I’ve even taken the plunge to trying plant-based meats myself.

Not for the health benefits. Rather, because I’m interested in saving the environment (cows produce a lot of greenhouse gases) and improving animal welfare (my dog has made me a sucker for all things on four legs). For the record, lots of consumers are making the plant meats pivot for the same reasons — the health stuff is tangential.

In any event, guess what I discovered after I made the plunge?

Plant meat is pretty good.

Of course, I still eat my burgers. I still have steak dinners. But now, I mix in the occasional plant-based meat (maybe a few times per week). The same can be said of young consumers. About 80% of Generation Z consumers go meatless once or twice a week. Some are doing it for health benefits. Some are doing it for environmental purposes. Others are doing it with animal welfare in mind.

And that’s the point. Plant meat’s benefits are so wide ranging that it is attracting an increasingly wide net of young consumers.

These young consumers represent the future driving force of the U.S. economy. So, their “hybrid” model of vegan and animal meat consumption is the future of eating. It’s a future wherein vegan meat — which today is very niche at sub-1% penetration — could one day easily comprise ~20% of total meat consumption.

The investment implication here is clear.

It’s time to buy vegan stocks, before young consumers spark a global explosion in the vegan meat market throughout the 2020s. And the best vegan stock to buy today is VRYYF stock.

Meet The Very Good Food Company

With a market capitalization of just $260 million, Very Good Food Co. is relatively unknown. The Canadian vegan meat-maker started out in early 2016 with a chef selling his own plant-based meats at a local farmer’s market in British Columbia. His products were a major hit, and by early 2017, that chef teamed up with a business executive. And thus, The Very Good Butchers brand was born. Its unofficial slogan became “we butcher beans, not animals”.

Now, Very Good Food is a vertically integrated vegan meats producer with arguably the market’s best branded vegan burgers, sausages and more. On the company’s online shop, the burger has a 4.5-star rating (73% 5-star ratings), while the taco stuffer has a 5-star rating. Across all the reviews, it’s clear that VRYYF has arguably the best products in the vegan meat world.

In other words, The Very Good Food Company is built on rock-solid fundamentals, which imply that this company could turn into a major player in the booming vegan meats market — something like the next Beyond Meat (NASDAQ:BYND).

Yet, the company is worth just $260 million today. Beyond Meat is worth more than $10 billion. This difference, while huge, is on the cusp of rapidly closing, and VRYYF stock is on the verge of an enormous breakout.

A Big Breakout Is Imminent

Investors should buy Very Good Food Company’s stock for one simple reason — a big breakout in VRYYF stock is imminent.

The catalyst behind this breakout is increasing supply. Despite the increasing demand (sales are up 226% in 2020), Very Good Food still operates in a tiny 4,000 square-foot production facility in Victoria, Canada. The supply constraints that have held the company back are about to be fixed, however, as Very Good Food Co. has leveraged its growth to raise a bunch of capital. Capital that the company is committing toward the opening up of two new production facilities: a 10,000 square foot facility in Vancouver and a 25,000 square foot facility in California.

In Vancouver, this facility will help the company meet robust demand on the west coast of Canada.

In California, Very Good Food Co. will be able to expand in the U.S. for the first time.

This will lay the groundwork for Very Good Food Co. to go from small-scale to Beyond Meat levels of success.

Huge Long-Term Upside Potential

VRYYF stock has enormous long-term upside potential.

Conservatively, I think this company can grow to $1 billion in sales and $50 million in net profits in the long run. A 20X earnings multiple on that implies a potential future valuation for the company of $1 billion.

That implies about 4X upside potential in VRYYF stock.

But, I also think that if a few things go right, this company could be looking at $5+ billion in sales and $500+ million in net profits in the long run. The same math yields a future valuation of $10+ billion, implying almost 40X upside potential.

Big picture: The Very Good Food Company appears to be on the cusp of huge North American expansion which, if executed correctly, will send VRYYF stock up several hundred — if not several thousand — percent.

Bottom Line on Very Good Food Co. Stock

10X winners are tough to find in the market. There simply aren’t that many of them. But VRYYF stock could end up being one of those elusive 10X winners, meaning this stock should — at the very least — be on your buy radar today.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

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