Verus International Inc (VRUS)

[Renegades17]

KBSF- A well received RS

This stock might sell off, but it's got a great balance sheet despite deteriorating revenues. I care less about this stock and more about the implications for RBIZ. I think the RS will be very well received, particularly if the CEO provides additional information on contracts or more detailed EBITDA guidance.

I personally think a food company with strong growth should trade at least aat 0.5x sales during its growth phase. The multiple could be higher depending on whether the operating margins end up being closer to a food company or distributor. Either way, the valuation should rerate a lot higher from here.