Chewy Inc (CHWY)

[MikeBK205]

Not selling any shares under $100. This is easily $135 by end of
2020

[velcro]

I suspect Buying slowed and the Shorts took over. Price has gone so low that Shorts must cover and price looks to be rising again.

[GergM]

What is going on here this is a great company with Profit why are they getting hammered??

[T695]

$26 and change coming

[CountryMac1]

Added 27.50

[daddydo]

Thanks !! I feel it is a great future ahead for them also.

[CountryMac1]

Chewy is acquiring hundreds of thousands of new customers every month. Good things coming

[daddydo]

Any thoughts on earnings? I am seeing alot of chewy boxes everywhere??

[Dragon year]

Just saw a stack of CHEWY boxes on my neighbors stoop !! Go CHWY

[Dragon year]

I agree velcro

[velcro]

Could be a buying opportunity?
Chewy hasn't done any real serious advertising as yet.

[eMotion]

Chewy – HEEL!

Chewy, Inc. ($CHWY/NYSE) is a recent IPO that has all the makings of a train wreck for minority shareholders.

The Company raised several hundred million dollars in its initial public offering of 46,500,000 @ $22/share; however, the bulk of proceeds were taken by Chewy’s owner Petsmart and sponsors. Petsmart maintains majority economic and voting control through super-voting shares and will be free to sell more of its 273,500,000 shares on December 15, 2019 when its lock-up agreement expires.

The stock is buoyed by an overheated market and incomplete and misunderstood information, including inflated e-tailer comparable valuations such as ETSY ($ETSY/12x sales) and Amazon ($AMZN/50x EPS), a minimal beat to the guidance given in the Company’s SEC filings (reported as a miss by news services), a belief that auto-reload revenues (67% of sales) are sustainable into perpetuity (in fact cancelable at any time), views that repeat customers will continue to increase spend (the law of large numbers catching up now), and an overall avoidance (or ignorance) of the significant competitive threats around including WalMart’s ($WMT) launch into the pet care space with thousands of in-store vet clinics with PetIQ (VetIQ of $PETQ).

Repeat business and rising average spend per customer have been drivers of growth, but we believe this trend by existing customers has peaked and the law of large numbers will now decelerate top line growth. Note that management’s first post-IPO guidance calls for low single-digit % top line growth in the next three months as per the most recent report.

The Company is free cash flow negative and has little leverage in its operating model especially in a commodity pet food/products world demanding next day shipping from the likes of $AMZN, $WMT and $TGT. The market is characterized by substantial price competition which shows no sign of abating. Despite the fallacy of the argument, pet owners’ loyalty to their animals does not translate to loyalty to $CHWY products and services or its brand. With less than $150MM in cash and burning funds for the foreseeable future, we believe there is little room for error for this online kibbler as it navigates its way to the world of the “big dogs.”

There is no fundamental basis for an online pet food company to trade at $13BN valuation or 3x sales while burning cash. We recommend investors SELL $CHWY based on an IPO that has essentially taken a bankrupt company public while allowing its control shareholder to unload hundreds of millions of dollars of paper in an unprecedented sign that the overall market is in a “second dot.com bubble”. Our price target is $11, which represents 1x annual revenues of $4.4BN based on roughly 400MM shares outstanding. That said, current Internet multiples are inflated, and in a normalized environment, we estimate CHWY shares are more fairly valued at 2x gross profit or 0.5x-0.6x sales, which represents an EV of $2.2BN-$2.5 or $5-$6 per share.

[Dragon year]

Great couple days.. hope it continues . Go CHWY

[velcro]

July 24, 2019
2:03 pm ET
*Chewy shares are trading higher following an SEC filing showing Melvin Capital has taken a 6.9% stake in the company.
Benzinga

[T695]

I’m thinking $25 ish will be bottom

[Dragon year]

$$$$

[Dragon year]

????

[Dragon year]

No way .. patience ??

[T695]

Yea, go to $25 lol

[Dragon year]

Go.. CHWY!!!!

[#1pennytrader]

Woof... Woof... Go CHWY

[T695]

Out of CHWY for now. Expecting a pullback after earnings report to be a buying opportunity

[gangsterflavor]

Great post!

Earnings out on Thursday, ready to rock & roll.

[Dragon year]

Got my first Chewy.com marketing post card in the mail today! Impressive

[Bakerman_06]

Chewy initiated with a Buy at BofA/Merrill BofA/Merrill analyst Nat Schindler started Chewy with a Buy rating and $40 price target. Uptake of the company's Autoship program and its low market penetration should drive double-digit growth rates through 2023, Schindler tells investors in a research note. The analyst expects Chewy to reach free cash flow breakeven in 2019.


https://thefly.com/landingPageNews.php?id=2930449&headline=CHWY-Chewy-initiated-

[Golden Cross]

CHWY Daily Chart

[Alwaysbmikki]

Save the date ...https://investor.chewy.com/news-and-events/news/news-details/2019/Chewy-Announces-Fiscal-First-Quarter-2019-Financial-Results-Conference-Call/default.aspx

[T695]

35.40 resistance Friday and pre market today, we need to break it to run

[T695]

I won’t be surprised if we’re up over 10% tomorrow

[Dragon year]

Been looking good CHWY

[GergM]

Yep the last few days has been on the right path upwards.

[T695]

Yea I’m thinking we seen the bottom

[Dragon year]

I agree T695 ! This is the time to get in. I feel really good about Chewy!!

[T695]

Buy right now

[Alwaysbmikki]

'highstakes' on 'Chewy, Inc. (CHWY)'
Once all the big boys average in there shares then they will announce the upgrades. There not going to say anything good till they are done loading . IMHO GLTA

[highstakes]

What about downgrades?

[T695]

I said it before them lol

[T695]

Stop playing and hit $30 already got dammmit

[cintrix]

CHWY downgrade:

$CHWY Wedbush says wait for pullback before buying and gives it a $30 target.

— cintrix26 (@cintrix26) June 21, 2019

[Alwaysbmikki]

I think this stock going to be a winner. Buying now before the big boys start to upgrade. Thinking this is about the bottom after JP remarks. IMHO

[Dragon year]

Thoughts?

[stocky101]

She’s running out of steam, after 10 o’clock this thing is going to tank

[stocky101]

She’s going to drop like a rock, the puts on this are going through the roof

[TechWhiz]

Good day in Chewy Land...

[KristenTrades]

Glad to own shares here ... Hope it runs like a mad dog!

[T695]

Eventually..... but head fakes until then

[stocky101]

Chewy will run just like beyond meat Did... there is an ipo craze

[T695]

I wish this thing would just drop like a rock so I can get in already

[gangsterflavor]

By the end of the year?

Easy

$CHWY

[powercrush86]

In here with a few shares looks like a lot of market sentiment and a hot area to be in right now