I'm Adding To This Micro-Cap
Hidden growth, zero debt, cash 20% of market cap , 8X EV/EBITDA
Industry leading same store sales growth in key brand (80% of system-sales)
Core brand system-revenue up 16% in full-year fiscal 23 vs. fiscal 22
Visionary CEO with track record of successful execution
Adjusted for PPP forgiveness in 2022, EBITDA and operating income +28% yr/yr
Repurchased 20% of shares outstanding in fiscal 2023
Cash equal to ~20% market cap, zero debt, 8X EV/EBITDA
Management is: 1.) Focusing on the core “gem” business 2.) Improving unit economics with low-cost product innovation 3.) Restarting the growth engine with new store openings.
If my bullish hypothesis is correct, this could be a substantial multibagger - 10X potential if the company can execute over the long term
Note: This article is about a company that is a true, “left for dead” micro-cap with a sub $100 million market capitalization. This is not a time sensitive idea. If the bull case works, it will take place over a period of years. Anyone who considers a position in the stock should factor in the limited liquidity in the shares as well as the risk/volatility of investing in sub $100 million market cap companies. Dollar trading volume has averaged $115,000 over the past three months.