Why TQLB May be a Prime Squeeze Candidate

New Opportunity:  Torque Lifestyle Brands Inc. (OTCMKTS:TQLB)

The idea of a short squeeze has become more and more prominent this year and more and more bears and shorts are learning the real meaning of financial pain. 

One of the key drivers is increasing participation in the market by an increasingly savvy retail investor contingent. Today’s retail investors know to look for small floats and high short interest, especially when those traits can be paired with a company that has genuine fundamental strength under the surface.

Our new opportunity, Torque Lifestyle Brands Inc. (OTCMKTS:TQLB), fits all of these ideas extremely well, with a tiny float, aggressive shorting, and a recent transition to very real commercial operations with multiple live brands and soaring topline growth.

TQLB is also engaged in a corporate strategy that seeks growth through frequent deal making.

That’s important because, not only does the stock have a sturdy fundamental profile, but it’s also a good source of headline risk for shorts – on any given morning, traders can wake up to news that Torque has made another significant deal to drive sizeable growth upside.

It’s an interesting story that’s well worth a closer look.

 

Symbol:  TQLB
Company:  Torque Lifestyle Brands Inc.
Quote:  http://finance.yahoo.com/q?s=TQLB
Latest News:  http://finance.yahoo.com/q/h?s=TQLB+Headlines
Company Website: www.torquelb.com

 

Who is TQLB

Torque Lifestyle Brands Inc. (OTCMKTS:TQLB) develops, manufactures, and markets nutritional supplements for the sports industry in the United States.

The company has a range of brands under its umbrella that create a diversified end-market focus, in terms of demographics, while embracing synergies across manufacturing and distribution strategies. The idea is to target non-overlapping consumer categories with products that have widely overlapping production costs, which is a strategy capable of producing wide profit margins as it matures.

The company’s current brands include:

Core Natural Sciences and Storm Lifestyles are both new brand creations, while American Metabolix is an established leading brand.

American Metabolix is one of the world’s fastest growing supplement companies, with sports nutrition and Keto products available at GNC, Bodybuilding.com, and top sports nutrition retailers worldwide. Its products have sold in over 550 brick and mortar locations across multiple countries, including the United States, New Zealand, Australia, and Russia, among others.

The Keto diet trend was ranked as the most popular consumer diet in the 7th annual Pollock Communications and Today’s Dietitian “What’s Trending in Nutrition” 2019 survey. The global ketogenic diet market is expected to reach nearly $15 billion by 2027, according to a recent report by Grand View Research.

This leadership role is already paying off for the company, as noted in recent guidance from Torque management showing that American Metabolix is on pace for annualized sales of more than $1.5 million.

Core Natural Sciences is a brand it launched for the over-45 demographic and features supplements like Keto-5, Turmeric, Cider, BioPerine, CLA, and emergency immune supporters. The brand has already picked up top NFL Commentator, Brian Balindger, as its brand ambassador.

Storm Lifestyles is a line of sports nutrition and fitness lifestyle products targeting the under-35 demographic.

Storm features apparel, sports nutrition beverages, pre-workout supplements, post-workout recovery aids, vegan muscle recovery supplements, and fat burning supplements, among other products. Storm products will be sold both through direct-to-consumer e-commerce channels and physical store distribution.

 

Big Picture 

The key idea through all of this is its diversified brand portfolio in a marketplace – health and fitness supplements – that is growing strong.

According to Grand View Research, the global dietary supplements market size was estimated at over $123 billion in 2019 and is projected to expand at a CAGR of 8.2% over the next 7 years, driven by factors such as rising health concerns and changing lifestyles and dietary habits.

Research also points to a positive outlook for the sports nutrition market driven by a rise in the number of sports complexes and gymnasiums and an increase in the number of global sports events, both of which encourage athletes and consumers to focus on peak health and physical strength.

TQLB already has strong sales growth and real diversified commercial operations, yet shares are only earning a market cap of less than $5 million for the entire company. This may be because the crowd hasn’t found it yet. The stock is still picking up liquidity and only started trading as Torque a few months ago.

To go from zero to the potential for millions in sales in its first few months is worth appreciating.

 

Recent Catalysts

Expanding Tier-One Distribution. Most recently, the company announced that it has started shipments into national locations from tier-1 health and nutrition retailers including GNC, Max Muscle Sports Nutrition and Vegas Discount Nutrition.

The new locations were won by American Metabolix, a Torque Lifestyle Brands company, which will begin shipping its Muscle Test, a testosterone support product, to the 1000+ national GNC franchise locations – as well as its full line of products into Max Muscle Sports Nutrition locations and Vegas Discount Nutrition locations nationwide.

“We are pleased to have significantly expanded our national retail footprint for our American Metabolix brand, building on our recent momentum to begin a significant new sales push going into the summer of 2021,” said David Lovatt, Chief Executive Officer of Torque Lifestyle Brands. “These new authorizations are a clear testament to the strength of our product offering and an indicator of a resumption in economic growth, as brick-and-mortar stores resume regular operations and gyms come back online.”

Lovatt added: “We are well positioned to seize the market opportunity facing us today and remain on track to deliver at least $1.5 million in revenue in 2021. In the months ahead, we will seek to further expand our diverse portfolio of in-house brands and drive more product placements across our family of companies into retail locations nationwide. I look forward to continued operational execution as we strive to create sustainable, long-term value for our shareholders.”

Expanding Sales Growth. As alluded to above, the company recently announced an update of the Company’s performance over recent months since its acquisition of American Metabolix on Feb 1, 2021.

Since closing its acquisition of American Metabolix, the Company has completed three months of operations under the new structure, with operations completed and closed for the two months including February and March 2021. In those two months, American Metabolix posted total revenues of $124k, which annualizes to $744k (if one assumes no rate of growth).

However, drilling down, March represented 70% sequential monthly growth over February. And unofficial data from April (provisional and subject to change in future reporting) suggests potentially very strong growth relative to February and March likely as much as a further 61% sequential monthly growth over March. Given this growth rate, early data suggests that American Metabolix may be on track to record in excess of $1.5 million in total sales in 2021 as increased investments in marketing and distribution show up in end-market data.

Expanding Brand Presence. The company also recently announced some influential supporters. We noted Brian Baldinger above. Just before that, the company also announced that it has signed up-and-coming social media superstar Mariam Olivera as a key influencer helping to promote its American Metabolix branded line of products.

Olivera has more than 2.3 million social media followers and fans across multiple platforms, including more than 1.9 million followers on Instagram, where she has cultivated a stunning 7.11% engagement rate – according to Digitalmarketingcommunity.com, the average Instagram engagement rate by audience is 1.22%.

Mariam Olivera is a top influencer on both Instagram (@mariam_olv) and TikTok (@mariam_olv). She will be doing Instagram posts and stories for American Metabolix as well as TikTok videos with swipe-ups for ordering from the American Metabolix website.

Technical Analysis

TQLB shares have started to show real technical traction over the past two months. The stock appears to have formed a nice head-and-shoulders basing/bottoming pattern during April and May, topped off by a bullish breakout above its now-flat 50-day MA. 

That forms the context of a rising trend channel that has been tested multiple times and has held in place, pointing to potential for accelerating upside if it manages to breach the channel topline on a future test.

Note that this is all happening on a tiny float of just 1.6 million shares. Any jump in interest could result in outsized gains for longs due to the scarcity of available shares knocking around on the inside market at any given time – similar to a short squeeze dynamic.

And, speaking of short squeeze potential, OTCShortReport.com points out that TQLB has seen more than 77% of its volume coming from short-side orders 5 times in the past month, suggesting that a genuine squeeze is possible here.

About TQLB

TQLB (Torque Lifestyle Brands) is focused on driving performance through acquisitions and by advancing original brands in the rapidly growing supplemental nutrition marketplace. The company develops, manufactures, and markets nutritional supplements for the sports industry in the United States.

The company has a range of brands under its umbrella that create a diversified end-market focus, in terms of demographics, while embracing synergies across manufacturing and distribution strategies. The idea is to target non-overlapping consumer categories with products that have widely overlapping production costs, which is a strategy capable of producing wide profit margins as it matures.

The company’s current brands include:


Core Natural Sciences and Storm Lifestyles are both new brand creations, while American Metabolix is an established leading brand.

 

Key Points:

  • TQLB is on pace to record as much as $1.5 million topline in 2021 in its first year of commercial operations
  • TQLB has a growth model that leans heavily on strategic action, so expect more deals hit the company’s news wire
  • TQLB is driving growth in multiple brands with overlapping fixed costs and non-overlapping end markets, which drives strong bottom-line growth potential
  • TQLB is trading on a super-tight float of just 1.6 million shares with recent heavy short-side trading activity, which could combine into some serious squeeze potential on any positive news
  • TQLB just finished a H&S basing pattern and broke above its 50-day MA

Conclusion

TQLB appears to be gaining traction in both technical and fundamental terms as the company diversifies its end market reach and moves up to tier-one distribution while embracing core synergies across brands on the production side.

That’s a robust model, and it’s likely to support further expansion through coming strategic deal-making.

Given the extremely tight trading float and the excess build-up of shorts in the tape over the past 6 weeks, the stock could be primed for some very interesting action and deserves to be on the radar.

Recent Chart Activity

Recent News

The Company incorrectly listed the distribution of these shares as a dividend in the July 8th Press ReleaseWHEAT RIDGE, CO / ACCESSWIRE / July 21, 2021 / Torque Lifestyle Brands Inc. (OTC PINK:TQLB) ('Torque' or the 'Company'), an emerging leader in the $150B+ sports nutrition and supplements market, today announced has a correction to the three-for-one forward stock split, which was announced on July 8, 2021.

WHEAT RIDGE, CO / ACCESSWIRE / July 20, 2021 / Torque Lifestyle Brands Inc. (OTC PINK:TQLB) ('Torque' or the 'Company'), an emerging leader in the $150B+ sports nutrition and supplements market, today announced that it has engaged international investor relations specialists MZ Group (MZ) to lead a comprehensive strategic investor relations and financial communications program across all key markets.

Stock Split to Become Effective July 16, 2021WHEAT RIDGE, CO / ACCESSWIRE / July 8, 2021 / Torque Lifestyle Brands Inc. (OTC PINK:TQLB) ('Torque' or the 'Company'), an emerging leader in the $150B+ sports nutrition and supplements market, today announced that the Board of Directors has approved and declared a three-for-one forward split of the Company's common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors.

Torque Begins Vertical Integration Efforts to Improve Corporate Margin ProfileJoint Venture to Service Successful Glaxon Brand, Realizing Millions in Anticipated RevenueWHEAT RIDGE, CO / ACCESSWIRE / June 16, 2021 /Torque Lifestyle Brands Inc. (OTC PINK:TQLB) ('Torque' or the 'Company'), an emerging leader in the $150B+ sports nutrition and supplements market, today announced its entry into 51% ownership of a new manufacturing joint venture partnership (the “JV”) with leading contract manufactur

American Metabolix, a Torque Lifestyle Brands Company, Now Rolling Out in New GNC, Max Muscle Sports Nutrition and Vegas Discount Nutrition Locations Nationwide Wheat Ridge, Colorado--(Newsfile Corp. - June 2, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque" or the "Company"), an emerging leader in the $150B+ sports nutrition and supplements market, today announced that it has started shipments into national locations from tier-1 health and nutrition retailers including GNC, Max M

Wheat Ridge, Colorado--(Newsfile Corp. - May 19, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque" or the "Company"), an emerging leader in the active lifestyle sports nutrition and supplements marketplace, is pleased to provide an update of the Company's performance over recent months since its acquisition of American Metabolix (www.americanmetabolix.com) on Feb 1, 2021."We have achieved clear traction with our recent American Metabolix acquisition, and we wanted to update shareholders as we ...

Wheat Ridge, Colorado--(Newsfile Corp. - April 9, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque Lifestyle" or the "Company"), an emerging leader in the active lifestyle sports nutrition and supplements marketplace, is excited to announce the launch of the Company's new brand, Storm Lifestyles (Stormlifestyles.com) ("Storm"), a line of sports nutrition and fitness lifestyle products targeting the under-35 demographic.Storm features apparel, sports nutrition beverages, pre-workout supplements, post-workout recovery aids, vegan muscle ...

Wheat Ridge, Colorado--(Newsfile Corp. - April 6, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque" or the "Company"), (www.torquelb.com) an emerging leader in the active lifestyle sports nutrition and supplements marketplace kicks off its marketing relationship with NFL Network Star Brian Baldinger whom it recently signed as the Brand Ambassador for its New Core Natural Sciences brand (CoreNaturalSciences.com).Mr. Brian Baldinger To view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/7369/79427_torque2.jpgBaldinger is an extremely influential ...

Wheat Ridge, Colorado--(Newsfile Corp. - March 25, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque" or the "Company"), (www.torquelb.com) an emerging leader in the active lifestyle sports nutrition and supplements marketplace, is excited to announce that the Company has signed Brian Baldinger as the Brand Ambassador for its Core Natural Sciences brand (CoreNaturalSciences.com).Mr. Brian BaldingerTo view an enhanced version of this image, please visit:https://orders.newsfilecorp.com/files/7369/78529_77a0792a243a3863_002full.jpgA well-known personality associated with the massive professional ...

Wheat Ridge, Colorado--(Newsfile Corp. - March 17, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque" or the "Company"), (www.torquelb.com) an emerging leader in the active lifestyle sports nutrition and supplements marketplace, is excited to announce that the Company has signed up-and-coming social media superstar Mariam Olivera as a key influencer helping to promote its American Metabolix (www.americanmetabolix.com) branded line of products.Olivera has more than 2.3 million social media followers and fans across ...

Wheat Ridge, Colorado--(Newsfile Corp. - March 4, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque Lifestyle" or the "Company") (www.torquelb.com), an emerging leader in the active lifestyle sports nutrition and supplements marketplace, is excited to announce the launch of the Company's new "Core Natural Sciences" (www.corenaturalsciences.com) brand of nutrition and health supplements designed to execute into high growth Affiliate Marketing platforms as well as utilizing Social Media Influencers. This move comes ...

Wheat Ridge, Colorado--(Newsfile Corp. - February 24, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque Lifestyle" or the "Company"), an emerging leader in the active lifestyle sports nutrition and supplements marketplace, is pleased to announce that it has fully completed its acquisition of American Metabolix (AmericanMetabolix.com), one of the world's fastest growing supplement companies, with sports nutrition and Keto products available at GNC, Bodybuilding.com, and top sports nutrition retailers worldwide.To view an ...

Wheat Ridge, Colorado--(Newsfile Corp. - February 18, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque Lifestyle" or the "Company") (www.torquelb.com) an emerging leader in the active lifestyle sports nutrition and supplements marketplace, is excited to announce the signing of a Letter of Intent (the "LOI") to acquire American Metabolix (AmericanMetabolix.com), a leading producer of sports nutrition and health supplements products.American Metabolix has become a rapidly growing premium supplement company in the ...

Wheat Ridge, Colorado--(Newsfile Corp. - February 4, 2021) - Torque Lifestyle Brands Inc. (OTC Pink: TQLB) ("Torque Lifestyle" or the "Company"), an emerging leader in the active lifestyle sports nutrition and supplements marketplace, issues the following letter to shareholders on behalf of its CEO:Dear Valued Shareholder,First off, thank you for your support, loyalty, commitment, and patience. Torque is set to move forward with a bold new vision as we near commercial launch of multiple brands ...

Wheat Ridge, Colorado--(Newsfile Corp. - February 1, 2021) - Torque Lifestyle Brands Inc. (OTC PINK: TQLB) ("Torque Lifestyle", "Torque", or the "Company"), an emerging leader in the active lifestyle sports nutrition and supplements marketplace, is pleased to announce that the Company is now fully Current with OTC Markets in terms of documentation and information and the Company's Reg A financing is now effective.The Company plans to release a detailed shareholder update in the coming ...

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