This Low Float Stock Could Move 300-400% Based on New Social Media Star Endorsement

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Accesswire 17-Oct-2017 7:30 AM
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New, Immense Social Media Reach with Addition of Jen Selter as Brand Ambassador Sets Little RGNP up for Big Potential as Investors Realize the Marketing and Sales Implications. Stock Could React Like GLUU in 2014, Which Tripled in Price as Traders Understood the New Marketing Coup with Kardashians
NEW YORK, NY / ACCESSWIRE / October 17, 2017 /With the addition of social media star and fitness guru Jen Selter as a brand spokesperson, tiny Reign Sapphire Corp (OTCQB: RGNP)could be setting up for a huge move.
The small company has undergone an overhaul in the last two years, self-listing and ramping up three distinct, niche, direct-to-consumer jewelry brands under the Reign umbrella. The products are uniquely positioned to target and appeal to a young crowd, including millennials; sustainably sourced colored gems historically made up just a few percent of the $50 billion retail gem market in the U.S., but millennials are engaged in new approaches, and the shift away from the typical diamond with this younger audience is rapidly underway. RGNP is capitalizing on this with both jewelry and the business streamlined to appeal to this audience - including price points of $75 to $200 and an exclusively online sales process - it's no wonder Reign has seen such early success.
Reign operates with a lean infrastructure, focusing on e-commerce through direct marketing and, more recently, highly successful "influencer" promotion through social media. In a pilot program this June, the company saw a 4.2x return on customer acquisition cost and a 114% Return on Investment, according to their recent investor deck. With that kind of ROI, it's just a matter of how many potential customers they can push through the funnel.
In the second quarter of this year, Reign saw their revenue increase by 60% sequentially over the first quarter, and the company recently reaffirmed their 2017 guidance for sales of $2 million. The company just outlined plans to quadruple the size of their influencer campaign as a result of the success they've seen so far, and they've already had commitments from other top social media influencers.
The appointment of Instagram influencer Jen Selter as Creative Director and Spokesperson for Reign's new Athleisure jewelry brand, called the ION Collection, just a few days ago has gone mostly overlooked by the markets.
But it could mean big things for investors and traders.
Could This Be The "GLUU 2014" of 2017?
The reach of celebrities and social media influencers is not trifling, and RGNP is positioned to benefit from this kind of endorsement in a big, big way.
Traders will recall the roaring success of Glu Mobile's (NASDAQ: GLUU)"Kim Kardashian: Hollywood" and its subsequent impact on the stock price of GLUU. GLUU climbed 318% from $2.20 to $7.00 in the summer of 2014 after the launch of this mobile game and subsequent success with the Kardashian seal of approval. Tha Kardashian social media reach is tremendous, and Jen Selter's rivals this kind of fan-base.
The product is different, but the potential impact is similar to that of Kardashian when she lent her influence and impact to GLU. "Kim Kardashian: Hollywood" drove GLUU's topline to an impressive $249.9 million in fiscal 2015.
That's not to say these marketing campaigns are without fail. Glu tried to replicate this success with celebrity chef Gordon Ramsay and a game called "Gordon Ramsay Dash", which fell on deaf ears. It's worth noting that Ramsay's social media reach barely scratches that of Selter (3.3 million Instagram followers to Selter's 11 million), so the risk is small and the comparison not great. In fact, Selter is one of Forbes' "Top Ten Fitness Influencers", and her social media following makes up the majority of this group's reach.
Another big difference between Reign and Glu is that RGNP does not have to contend with the large 30% cut of revenue that Apple (AAPL)and Google(NGOOGL) take from gross revenues, collected through their app stores, which can only improve their already-high gross margins of around 60-70%.
The sales implications for this new collection and celebrity marketing are obvious understanding the success of similar campaigns at companies like GLU, and its potential impact on RGNP cannot be overstated.
Low Float Stocks Move Quickly
Reign's 46 million common stock outstanding are misleading in that only a small fraction of this is freely trading. CEO Segelman holds more than half of the company himself, indicating management is properly incentivized to execute on the business in the long-run. Meanwhile, the stock's small float means a little investor interest could have an oversized effect on RGNP.
Market watchers will recall what this same kind of attraction has done for other small-float companies recently, like Izea, Inc's (NASDAQ: IZEA) 379% eruption higher from late September into the first week of October.
According to press reports, Glu Mobile generated $1.6 million in the first week after the Kardashian game launched in 2014 - the same kind of celebrity blessing would have huge implications for RGNP.
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