Differenza wrote: TAAT Moving Fast 4500% STRONG BUY
The latest news were simply excellent. Well done Setti & team!
"In Q2 2021, CROSSMARK will service over 7,000 convenience stores in the state of Ohio."
So from having something like 150 stores (which are not Crossmark stores) as of today to more than 7000 in Ohio. Wow, that's an increase of like 4500%!!!! Let's say each of these stores only buys one cartoon per each (original, smooth & menthol) per year. 1 cartoon consumer price is like 40 USD, 3 cartoons = 120 USD
Per year 120 x 7000 = 840.000 USD.
If they instead buy 3 cartons each month then it's 840.000 USD x 12 = 10.080.000 USD per year.
And if they instead buy this amount of cartons each week then we have 840.000 x 52 = 43.680.000 USD. Apart from this we have the online sales covering most states in the US. Let's say TAAT will sell around the same amount online as the total store sales in Ohio. That would be around 90.000.000 USD in sales from the online store and Ohio combined. Image (not if, but when) we move to the other states through Crossmark's channels with their 97.000 stores outside Ohio.
If we give TAAT a low 10x sales valuation (should be higher since TAAT is growth company) we are talking about a Market Cap of 900 MUSD. Market cap as of today is around 400 MUSD. That's an increase in share price of 125%.
If we compare to JUUL when Altria invested in them they got a 25x sales valuation. And if we compare to RLX, the Chinese vaping company that Setti mentioned, they have like 100x sales. And Beyond Meat is around 25x sales.
If we apply 25x sales to TAAT we should have market cap of 2,250 BUSD in Q2/Q3. And that would mean an increase in share price of 460% in maybe 3-6 months.
This will happen and like I've written before TAAT will become a billion dollar company already in 2021.
TAAT is making all the right moves. The risk/return is extremely good from here.
STRONG BUY IMO.