[$TTCF] Tattooed Chef Stock Quick Pitch
Why I am INVESTED IN TATTOOED CHEF $TTCF and am a long term bull at a quick glance. - Stay Tuned for the DEEP DIVE!!
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Welcome to Momentous Insights where we
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Insight the Future | Speak the Truth | Change with Facts
To get outsized returns in the irrational stock market it all balls down to two of my favorite quotes by Thomas Phelps & Benjamin Graham which is 👇🏾👇🏾👇🏾
To make money in stocks you must have the vision to see them, the courage to buy them and the patience to hold them. Patience is the rarest of the three. - Thomas Phelps
The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists. - Ben Graham
You will see those quotes very often in my insightful docs because it's so true. Ok now on to the doc.. My goal is to find unjustified pessimism which leads to value and have the patience to hold that value unless the facts change. So that is what I'll focus on. Today I will try to explain the value i found in roughly 3 min. My name is Mya Parker and I’m a 14 year old investor, financial youtuber, enthusiastic gardener, and Christian, amongst other things but not a financial advisor.
Although really when it comes to investing, “I’m just a studier of history and a speculator of the future based on history.” - Mya Parker.
This is momentous insights and today I will give you my insight on the company Tattooed Chef $TTCF
———Insightful Diligence [Quick Pitch]———
Quick Pitch
Tattooed Chef $TTCF
Your health is your wealth
Tattooed Chef is a vertically integrated company whose mission to deliver high quality, great tasting plant-based foods to consumers who care about sustainable and ethically sourced foods aligns with me & what consumers are demanding.
The management at Tattooed Chef is amazing with a strong mix of innovators and managers that are humble as well as mission driven people, experienced, transparent, owner oriented with insiders owning 40%+ of the company, and extremely strategic as well as competent.
The product is amazing and consumers obviously want it which means everything else will fall in line as long as tattooed chef can supply. Which their balance sheet is loaded with cash ,more than 100M, and they have multiple facilities two of which they recently acquired which will further increase production capacity. I know the products are in demand because of the many case studies and by actually doing extra DD by buying a couple of the products as well as visiting costco, target, and walmart to see their products, etc. But here is a following case study to help put this in perspective.
The traction is great with revenues increasing from $47.3 million in 2018, $84.9 million in 2019, to $148.5 million in 2020, that being all organic growth, a history of profitability amid high double digit top line revenue growth, a growing branded product footprint, and a growing online presence.
The trajectory is great and conservative with 235M-250M in management guided revenues in 2021 to management's guided revenues of $1 Billion+ in 2026.
The value is great at a $1.8 Billion Market Cap & $1.64 Billion Enterprise Value as long as they execute not over execute just execute. I mean have you ever seen a vertically integrated public company that has had a good history of being profitable except Q1, growing at these rates, and trading at a current & fwd p/s of less than 10. I mean Beyond Meat $bynd is at about an average of 26.12 current P/S with the max being about 72 and min about 9.5 and the very good food company at about an average of 83.91 current P/S with the max being 210.7 and min about 33 but both of those companies arent even profitable whereas this company was profitable.
MY BET: is that the underlying fundamentals will continue to do amazing for Tattooed Chef as they have in the past through managements consistent execution and that as more people believe in this company although the current p/s multiple right now is currently at 10-11, future multiple expansion will lead to extremely outsized returns. Also Tattooed Chef has 35.41% Short Interest which should help amplify the multiple expansion. I mean Beyond Meat at about a 10 Billion Market Cap is expected by analysts to have about 1.2 Billion in Revenue by year end 2023 and using managements extremely conservative guidance im using 600M in revenues by year end 2023 for tattooed chef which is currently at a market cap of about 1.8 Billion. This puts beyond meat at about 8 times 2023 Revenue Estimates and Tattooed Chef at about 3 times 2023 Revenue Estimates. This just speaks tons. Ok If we were to further put a 10-20 times price to sales multiple on Tattooed Chef’s 2023 Expected Revenues of 600 Million you get a future market cap of 6 Billion to 12 Billion. Also by then the gross margin would be significantly higher to 30%-35%, adj. EBITDA at a high teens as a % of sales, and Net Income 7-11%+ as a % of sales. Considering all assumptions play out to be true this seems like a good opportunity at the current $1.8 BILLION MARKET CAP. Also do note this company could potentially pay out dividends longer down the line and as well as be around for 50+ years as people love the foods they love.
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{Thankyou for reading. Hopefully you found this as insightful [BTW I WILL DO A DEEP DIVE ON THIS SOON JUST I WAS WORKING ON IT AND THAT SUBSTACK GOT TOO LONG SO I HAD TO SEPERATE IT TOO A SEPERATE ONE WHICH IS THIS!] , if you did find this insightful you can follow me on various socials linked below for more}
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Disclaimer & What I’m Invested Into
Perfection is just a direction - Elayne Quirin
Do remember perfection is just a direction and i don't buy or sell stocks bc of relative or absolute valuations.. I use this as guidance nothing more nothing less.
As of June 14th, 2021 at 6:00 AM CDT im invested in $DBX $TTCF $IDKFF $PKKFF $FUV