Yes, you read the headline right - the newest breakthrough in intimate apparel technology is embedding skin care products directly into the fabric used to make the undergarments. Sounds crazy I know, but it might just be crazy enough to work. The intimate apparel market was worth $10 billion in the U.S. alone last year, and I’m sure it was proportionally bigger when adding in overseas markets. Even carving out a tiny segment of that market could be a multi-million dollar opportunity….even with something as novel as lotion-laced underwear.

What’s it got to do with small cap stocks? One of our following - Applied DNA (APDN) - is at the heart of the breakthrough. Remember the Dermal RX line of products they were working on? The venture we all knew a little about, but nobody knew much about? I think today’s news is the culmination of much of that work.

Here’s the deal - one of the Dermal RX products is designed to lock in moisture in the covered areas of the body, which in turn will preserve the appearance and health of the contacted skin. It’s called HydroSeal, and while it offers the same benefit that a lotion might, it’s much more permanent than that. HydroSeal can be embedded into the fibers used to make intimate apparel, so each time that garment is used it provides skin care to the person wearing it.

The product is being test-marketed right now. However, I can see it catching on well enough to establish a permanent space in the industry’s product mix.

I don’t know which brand of intimate apparel is co-venturing with Applied DNA on this deal. However, I’m guessing that’s a ’secret’ to be told later. Like I said though, it’s just a guess.

Will this get the stock moving? Probably not right away. The market’s got bigger things to worry about anyway, and there’s no immediate benefit to Applied DNA’s bottom line. It’s just another revenue stream for the company to cultivate. However, that’s been the case all along…the APDN story is about quality growth over five years, not overnight growth.

On that note, I do think the concept could be marketable beyond underwear. Healthcare, sports, and who knows what other venues may eventually see value in fabric that does something else as well.

Anyway, if any of you come across what appears to be HydroSeal-laden intimate apparel, please report back. I think we’d all like to learn more about how it’s being introduced to the consumer. The test market was simply described as ‘major metropolitan areas’, if you were planning on keeping an eye out for it.

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