TAAT Smokin' Hot Summer
What's not to like about this company? Both brains and beauty. They seem to be doing all the right moves and this will, in my opinion, lead to great success. Also their speed of execution is simply amazing. As always do your own DD but I personally love the company at this price, right here and right now. Here is perhaps some inspiration for those of you who are still standing on the sidelines and watching TAATs sexy moves:
* More Analyst Coverage. Canaccord has already started coverage and we'll soon get some recommendation, rating and a price targets. Maybe this week or next. Other analysts will follow. Fundamental Research Corp has also initiated coverage with a BUY recommendation with a fair value of 5.17CAD (more than 60% up from today’s price of 3.18CAD). Based on this first real report (the Q2) we will see more analyst coverage and price targets giving new investors more knowledge and confidence.
* Nasdaq listing in July is my guess. Announcement within a few weeks. Nasdaq will simply love this company.
* The new facility will be up and running in July. TAAT is today being manufactured at a rate of more than 57,000 ten-pack cartons per month (over 690,000 cartons per year), which reflects a 233% increase from the earlier production rate of 12 pallets per month to 40 pallets per month. This production rate will continue to increase as TAAT is scaling up as we speak...
* The new and improved base material "Beyond Tobacco" will also be announced in July. The "recon", the reconstituted base material is expected to be revolutionary.
* More stores. Today 300 between Ohio and Illinois. My guess is 600-1000 stores by end of August. Both in Ohio and elsewhere in the US.
* Entering more states in the US. I think we'll also see California soon ... those 4 million "health concious" Californian tobacco smokers will simply love TAAT.
* Entering more markets in the EU in Q3 and Q4. I think we'll hear about at least one new country already in July. My guess is Germany.
* TAAT will be in the UK in about 4-6 weeks. UK has around 7 million smokers. Around 30% or 2.1 million of those are MENTHOL SMOKERS, well at least they were before the ban last year. Six billion menthol cigarettes were sold in the UK in 2018. TAAT Menthol will be their best selling product IMO. The menthol market was 10 billion CAD in the UK...
* The Q3 (May-July) will come in September and will most probably reflect the high demand and the result of the latest marketing activities. I expect 100-300% growth in revenue from Q2 which could mean 1.4-2.8 Million. I see exponential growth in TAAT coming quarters. The hockey stick formation will eventually become evident. Setti has talked about a 7 figure revenue for this year (which would be easily reached according to himself) and management has also stated that they prefer to be conservative and under promise and over deliver... Personally I think we'll see 8 figures when we end the year on Oct 31. And wow, the gross margins of around 60% are amazing. Around 65%.
* More sponsorships and also product placements in Hollywood movies and series.
* Big national-scale marketing campaign targeted towards smokers in the US in Q3/Q4. This would be massive. Simply huge. TAAT knows the value of brand-building. The goal is to make the brand known to everyone, not only among tobacco smokers. The more well-known and stronger the brand and the more demand the easier it will be for TAAT to enter a deal with a big convenience store chain like Circle K. They have like 153,000 convenience stores in the U.S. and those outlets sell the bulk of the country's cigarettes. All in all there are over 400.000 outlets in the US that sell cigarettes... Eventually TAAT will be in most of those.
So, lot's of things to look forward to during Q3 and Q4... and beyond. Setti looks happy and so am I. TAAT is smokin' hot and in my opinion this disruptive super growth play has it all.
Have a great summer!
Forza TAAT & Forza Italia tonight!