After 6 Month downtrend Solo Brand was able to make a trend reversal. Look like a really good opportunity. check it out.


Hi there,

Take a look at Solo Brand (DTC) which is an Online retailer, that also focuses on the brick and mortar retail sector.

They mainly focus on Outdoor equipment, like solo stoves, Kayaks, Paddle board, and athletic wear.

I know that doesnt sound too amazing at first, but their growth and number are amazing, to back it up.

Some of their household names are Solo Stove and Chubbies, which have a dedicated following and use mouth to mouth propaganda as their main advertising tool.

After their IPO 6 month ago at 17$ the stock lost over 75% and was in a falling mode until May, when it reached 3.88$, now for 2 month the stock is consolidating nicely and because its way undervalued atm, chances are good the stock price is going to rise in the future. Many Investors didn't want to touch $DTC because it was unprofitable, but that is only half the truth. While on the bottom line making net losses Solo Brand used its IPO money to make two critical acquisitions, which should bolster their bottom lime from now on.

In anticipation of the Q2 earnings Call the CFO and CEO bought over $500k of their own stocks on the free Market, which is always a bullish sign and they reaffirmed their guidance to make $550M revenue and $70M earnings end of year. This puts the current Forward P/E at 4.4x, which is very undervalued. Also the Price-to-expected-growth rate is with 0.2 far below the industry average of 0.7. This shows us that Solo Brands has great inartistic potential and accumulating cheap shares in anticipation of Q2 earnings in Aug. might be a good bet.

Many investor point out that $DTC has only %15M cash on hand end of Q1, but this is due to the expected profitability of Q2, so the company has to make as little debt as possible. In any case there is a $297.5M revolving credit for usage, but the Cash burn rate is quite low after the two acquisitions, so they might not need another cash infusion, which would be good for shareholders.

On the technical side, the 6 month graph bottomed out near the 4$ mark and started a trend reversal for the last 2 month, which so far seems to be successfully going. The company has 2.6M Short interest, so there is high demand of its stocks and the chances are pretty high, $DTC`s share price will go back into the 6.50$ range after Q2 earnings.

This is only my opinion, I appreciate any constructive feedback, if you have any questions feel free to ask!


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