Solo Brands ($DTC) is a consumer lifestyle brand that includes Chubbies, Solo Stove, a funky kayak brand, and Isle paddle boards.
$DTC is trading nearly 67% below fair value and nearly 50% below the lowest analyst expectations, featuring a 100% buy rating and $23.33 consensus see source. PE is just 3.6; price fell from IPO of $17/share largely due to inflationary pressures. Very strong earnings and growth.
Lowest price target is $10, highest is $33. Current share price is $6.00.
Some important info:
- Gross margins ~ 66%
- Strong emphasis on product innovation
- Expanding worldwide – next stop Australia
- Continuing to acquire lifestyle brands
- Worth noting that this is a relatively lower-volume stock
- CEO purchased $440K of stock @ $4.89 avg. in May and 200K of stock @ 14.12 avg. in December 2021 source
Some takeaways from today's earnings:
- Net sales up 53.3% to $136 million from previous three months
- Gross profit up 45.2% to $86.7 million from previous three months
My positions, as of today:
- 10x 9/16 $5c
- 15x 9/16 $7.5c
- 10x 2/2023 $7.5c
- and also 21 shares
Curious for your thoughts about this company and its future prospects.
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