Seems like it's a good business with lots of room for aggressive expansion. However, I'm seeing market caps from $2B to $8B. I'm curious what their real P:S ratio and market cap is.
Real numbers? a real number is a value of a continuous quantity that can represent a distance along a line. The adjective real in this context was introduced in the 17th century by René Descartes, who distinguished between real and imaginary roots of polynomials. anyway, Butch Bros has been ranging for the past few weeks. so it will continue to range until the chart says otherwise.
I'm wondering if it's investable, not tradeable. I think it will grow to several thousand stores over the next decade, but if it's already at an $8B market cap, the company doesn't seem like a good deal.
Technical analysis is the last thing I look at to invest. I only believe in investing when I believe something is of good value fundamentally. It's a recent IPO that doesn't have much of a chart to work with.
Page 22 here: https://www.sec.gov/Archives/edgar/data/0001866581/000162828021018116/dutchbross-1a1.htm 165MM x $51 ===> $8.4B market cap (+/-) Using December's TTM revenue, ballpark of $500MM, call it a P/S of about 16.8 They're forecasting 125 new shops this year and high single digit same store sales, so just ballpark, add 20% to that revenue so a forward P/S of about 14 You can expect same store sales to come in hot when they report March 2nd, so it'll probably run on the news. Just beware this on March 15th: We, all our directors and executive officers, and the holders of substantially all our Class A common stock and securities exercisable for or convertible into our Class A common stock outstanding immediately prior to the completion of this offering, have agreed, or will agree, with the underwriters that, until the earlier of (1) the opening of trading on the third trading day immediately following the date we have publicly furnished our earnings release for the second quarter following the most recent period for which financial statements are included in this prospectus (so long as such date is at least 120 days from the date of this prospectus), or (2) 180 days from the date of this prospectus, we and they will not, subject to certain exceptions, without the prior written consent of BofA Securities, Inc., J.P. Morgan Securities LLC and Jefferies LLC, offer, sell, contract to sell, pledge, grant any option to purchase, lend or otherwise dispose of any shares of our Class A common stock, or any options or warrants to purchase any shares of our Class A common stock, or any securities convertible into, exchangeable for or that represent the right to receive shares of our Class A common stock; provided that up to 25% of the shares held by current employees and consultants immediately prior to this offering (but excluding current executive officers and directors) may be sold beginning at the commencement of trading on the later of (x) the first trading day following the 40th day after the date of this prospectus and (y) the third trading day immediately following the date we have publicly furnished our earnings release for the first quarter following the most recent period for which financial statements are included in this prospectus. And with the current low float, you can bet they'll exercise this soon too: Registration Rights In connection with this offering, we intend to enter into a registration rights agreement with our Sponsor and Co-Founder, pursuant to which we grant them the right, under certain circumstances and subject to certain restrictions, to require us to register under the Securities Act shares of Class A common stock delivered in exchange for Class A common units. Following completion of this offering and assuming exchange of all Class A common units held by the Continuing Members, the shares covered by registration rights represent approximately 71.7% of our outstanding Class A common stock (or approximately 70.0%, if the underwriters exercise in full their option to purchase additional shares), assuming exchange of all Class A common units. These shares also may be sold under Rule 144 under the Securities Act, depending on their holding period and subject to restrictions in the case of shares ++++++++++++++++++++++++++++ Lots of potential growth, but at $51/share, it is priced to perfection and then some. This Q will probably run the stock, but if same store sales ever come in weak down the road... watch out below.
Sorry couldn't resist the previous reference. Anyway IMO there is not enough history as a public company to give an opinion either way - technically or funnymentally.
Thank you very much. This is a very useful post. I was all excited when I thought it was a $2B company. I thought I found a diamond in the rough that had an easy path to quadrupling within the next 5 years. That's a big offering to further dilute the share value. I'll stay away.