Saturday, February 16, 2019

Vystar Corporation - An amazing hidden gem!

I recently literally stumbled across this company by a fortuitous glance at a message board unrelated to markets, where I came across a post about a pink sheet penny stock currently priced at .004.  Yes, you read that right.

 The post seemed sincere and had some leads for information, but I smirked and moved on thinking ... 'dude why are you posting about a penny stock here??', but I mentally added it to my list.

The next day at some point I pulled it up out of sheer curiosity, and it was up a big %. I thought, hmm.  Did some digging.  Kept digging.  Filings. Websites.  Names.  Hmmm 'this looks legit'. . .

Turned out to be the biggest mistake ever not just getting in when my newfound friend dropped the amazing tip based off his excellent due diligence.  Nevertheless, I bought, and now I hold and am a believer in the potential of this company to truly do future wonders, despite their past.

Now let me be clear - I still don't know enough and plan to learn much more about the past of the companies (I will explain that further).... but charts do tell tales.

VYST is a company that by all rights has a great idea and invention, and the "better mouse trap" of Latex. It has a patented process to remove the proteins from the latex, making it virtually non-allergenic. 'Virtually' because 99.x% of the proteins are removed, and they continue to work on methods to remove closer and closer to 100%. Attractive qualities of the latex, like resiliency and tensile strength, are also greatly enhanced and it reduces the "rubber" smell to almost nonexistent.

Not only that, but it is natural derived latex from the rubber tree, which biodegrades (Synthetic latex sticks around forever, like plastic!).  This is a green product and rubber trees are sustainably harvested, and rubber farms can even sell those "carbon offset" things.  Obviously, the fact that it is down in the pink sheets below a penny and has at least been filing with the SEC since 2012 means that their concept of selling just raw commodity Vytex® Latex didn't succeed in generating sufficient revenues, and it has declined to this point.

Fortunately, the future looks nothing like the past, and let me explain why.  In February of 2018 Steve Rotman became the CEO of Vystar.  Steve and his family own Rotman's Furniture, a behemoth family furniture company in Massachusetts generating over $38 million in annual revenues.  They had previously been involved with Vystar and Steve was on their board because they were interested in Vytex® latex for furniture products.  Since becoming the CEO, Steve has cleaned up the balance sheet, eliminating millions of dollars of convertible debt as well as recently announcing a share buyback plan.

Further, since Steve became CEO, VYST has acquired multiple different companies and their assets/patents, which are all intriguing companies with similar backstories as VYST - great ideas and patents, but they never got off the ground.  I look forward very much to learning more about the "why" of these earth-changing inventions never getting the proper attention in the market that they obviously deserve.  I have reviewed these patents, and I'm trying to contain my excitement about the literally world changing implications of some of this technology.  I can't wait to talk to Greg Rotman, the CEO's son and a brilliant man, again and ask about all of this.

Setting these astonishingly powerful patents aside, which I see a valuation of in the hundreds of millions, lets get down to the here and now.  Steve Rotman obviously sees amazing hidden value in these entities & patents he has acquired in these severely depressed companies (in terms of valuation). He spent the past year cleaning up the balance sheet after he took the helm and now he and the board have committed to consolidating Rotman's furniture company into VYST. This brings substantial net profits to the balance sheet along with all the experience of managing supply chain logistics and a company with 200 employees.  One factoid I learned that gave me insight into the character and business acumen of the Rotman Family was that the average length a time an employee has been with Rotman's is over 10 years - and that speaks volumes to me, because such low turnover is exceedingly rare.

After I invested in this company, and I am invested - unless material facts change, I want this to be a 'forever stock' - I set out to determine the quality of their products.  I bought a mattress topper and pillow. For comparison purposes - know that I had purchased a memory foam mattress topper and "my pillow" in the past.  I will not speak to them directly, but know this - I spent far more on the memory foam and my pillow than I did the Vytex® Products and I absolutely love these products and greatly prefer my new Vytex® products.  I cannot understate how much better my sleep is with this topper and pillow.  I have been using them for almost 3 weeks now and have fallen in love.  I plan to order their Bed-In-A-Box mattress soon.  There will probably be more forthcoming articles on this company just because of how much I love their products.... if I don't get too busy.

Read the only review of their new entry to the Bed-In-A-Box market mattress.  It's glowin, and having slept on their topper it makes me really excited to get one and transform my sleep.  Here's a great quote about Latex mattresses:

 Now think about that.  Natural rubber latex mattresses are already best in breed and Vytex® Latex adds onto that with even more durability and less odor (I believe this odor generally goes away over time for any product, but my Vytex products arrived having barely any odor to begin with, I literally had to stick my nose into them to smell rubber).  Now look at the price again and go price shopping.  Go ahead, I dare you.  Goldbond and Tempur-pedic, you've met your match... in every category.

I don't want to go too long.  Perhaps if there's some interest I'll write a follow-up down the road.  I'm always available in the comments section to field questions.... but suffice it to say that after having a ~40 minute conversation with Greg Rotman after doing my own due diligence... I am a strong hand investor that looks forward to seeing and helping this company execute on their vision.

Full Disclosure:  I was not paid for this article and I would never accept compensation for any article I write.  I am long the common stock of VYST.  This is all my opinion and to the best of my understanding.  You should do your own due diligence.