and Why Are Apple Investors Buying It?https://finance.yahoo.com/news/cool-holdings-awsm-why-apple-202708278.html
Shares of Cool Holdings AWSM were up about 42% through early afternoon trading hours Monday, adding to a recent run of momentum which has seen the stock gain more than 115% since bottoming out near its 52-week low in late August.
Cool Holdings has skyrocketed as investors have begun using the stock as a low-priced method for betting on Apple AAPL. The little-known retail holding company owns OneClick International and OneClick Argentina, which operate Apple product boutiques primarily in Latin America.
OneClick stores look similar to Apple’s retail outlets—including the familiar white color scheme—but are neither operated nor owned by the Cupertino, California-based technology behemoth. Cool Holdings was founded by Apple’s former head of enterprise sales in Latin America, which likely explains why it trusts the retailer to sell and service its devices.
This trust is an integral part of Cool Holdings’ business—and it is not easy to come by. Apple does not want other brick-and-mortar locations to compete with its own stores, and it takes a unique amount of pride in delivering the same Apple experience in any space displaying its products.
Still, piggybacking off of smaller retailers can help Apple break into places where it might be unfamiliar with local practices or otherwise unwilling to take a risk.
And Cool Holdings has clearly impressed Apple in this regard. The OneClick owner has become one of the tech giant’s key partners in Latin America and now operates a total of 17 stores which sell Apple products.
Those holdings include a few stores in the United States, and the company has been selected as one of Apple’s premier partners in the Americas to expand that portfolio. Cool Holdings now wants to become the largest authorized Apple reseller and plans to open over 200 new locations by 2020.
Cool Holdings says it brings in about $3,750 in revenue per square foot, making it the second-most efficient seller of Apple goods behind only Apple itself. Plus, at just above $7 per share, the stock probably looks a lot more accessible to smaller traders, and its prospects for international expansion are likely not matched by any other Apple partner right now.
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