Luvu Brands Inc. (LUVU)

[blindman28]

Another note that is really encouraging. It sounds like with JAXX and Avana . They will continue to post Positive Net income in their slow Quarters Q3 and Q4. When in previous years they would lose money.

[blindman28]

you can watch here. https://ve.mysequire.com/recording?session_id=0d387ab3-418b-4a15-a306-3ff2e9de7899

CEO said they can do 20 million more in revenue per year in their current facility. with the new equipment coming in and expanding production. He also said they could do $150,000 a day in revenue without significant increase in cost.

Yea it sounds like they averaging 100k+ a day in Revenues in December.

Remember they already said October was +25%-30% in sales from previous year.

Operating margin will be around 30-35%.

It seems like their only hiccup is their sewing operations. But this looks like they are starting to outsource some of that to Mexico to save on cost. (i read that in a previous filing).
Everyday is non stop busy from 6:30 am - 7:30 pm

It looks like LUVU has the ability to do 40 million in revenues with 35% operating margin in their current expansion production at their facility.


If they averaged 100k a day in revenue this quarter that would be $9,000,000 in Revenue..........

It really is laughable that this is only a 7 million dollar company

[hweb2]

Anyone catch the LD Micro presentation today? Nice to hear the CEO talk about how busy they are before Christmas. Early in the presentation think he said a good day right now is over $100K in sales. Later in the Q&A, thought I heard him say they were looking at $150K in sales for today. Either number sounds pretty bullish for a company that did $5.4M in revenues last quarter.

[blindman28]

Although that guy Kramer has owned 5.3 million shares since 2014..... I would like to ask how he became involved in the company because looking at his track history it is not a good one

[blindman28]

I found it. I finally some interesting evidence on what might be going on with LUVU "panic selling"

So there is a guy named Curt Kramer who owns 5.3 million shares as of October 22nd 2020.

https://backend.otcmarkets.com/otcapi/company/financial-report/260910/content

This guy has been involved in some shady shit over the years.

link here https://www.sec.gov/litigation/admin/2016/33-10239-s.pdf

its the same guy. They are both from Great Neck NY

more info

https://www.reuters.com/article/us-sec-pennystock-settlement-idUSBRE9AO11420131125

[hweb2]

Maybe tax loss selling a factor here? Lots of volume on that big run over .40 in May. If anyone's still holding those shares, would make sense to take the loss. To offset gains on other stocks (def plenty of those this year). Hopefully the panic selling abates after 12/31.

[PennyStockTrader2]

this has been a tough one I have to admit, all I can do is average down, but I seem to keep missing the bottom sales due to poor planning.

[blindman28]

My personal opinion . No one knew about this stock Pre Covid.

It was an extremely illiquid stock with flat line Rev's and basically a break even or slightly losing money company in the 5 years prior.

Luvu got pumped up way beyond its value and marketed as a Covid PPE play among the internet community.

LUVU has lost its hype and by looking at the chart it has been left for dead.

The thing is, if you exclude the PPE now LUVU business is actually growing at record numbers and their products are in the perfect market to take advantage of the shift from working in the office to working in the home.

But traders don't find that aspect "sexy" pun intended

With covid cases rising i could see this pop to 30 cents if they get another government contract. although it would have no material long term implications for the company

[blindman28]

Their is no reason not to bid sit here currently. Someone is panic selling hundreds of thousands of shares it seems every week. IDK maybe its stock options exercising. But that would only be a couple of million shares in total and this has been going on for a while it seems like now.

Until that random seller proves they are gone. LUVU stock price is not going higher.

Maybe the virtual presentation on Monday will help a little showing how god damn undervalued the company is.

I was right should of had a bid in the low 0.07s yesterday...... my yearly car insurance bill came up..... so was not able to do it this week.

But don't worry we will hit the low 0.06s range next week.....................

I will continue to add every week on this selling though

[jcseeker]

Latest earnings showed a 30% increase in sales and a 28% net profit gain. They recently purchased a new machine announcing they can't keep up with production yet the stock price has been in a decline mode. I'm sure glad the news hasn't been bad...no telling what this would look like.

My question for all is, what is it going to take to drive this price up?

[blindman28]

I added 20,000 shares at 0.081 bringing my average down to .098. Their is no reason to buy shares at the ask for people like us with all this selling.

The only way i see this reversing now is that volume has to completely dry up on the selling side for a couple of weeks. Then i can see people buying at the ask again. or some kind of positive news catalyst.

I'm going to put a bid in the low .07s because honestly it will probably happen next week also.....

LUVU was trading in the 0.05-0.07 cent range in Spring 2017 and spring 2016. when they had the same amount of shares. a stock deficit of 2.5 million and net income for the WHOLE YEAR being around 200k.

This year in their historically worst Q. LUVU did 330k net income for 1 QUARTER!!!

The fact they did more net income in their worst Q this year than all of any previous years combined net income and we continue to sell off is mind boggling.

I''m not even including the 880k net income from the one off PPE sales

[hweb2]

I don't get it either. Almost like panic selling. If you want to sell cheap, at least get .09-.10 for those shares. Wish I'd had some lowball buy orders in this morning.

[PennyStockTrader2]

Wow Luvu hit a low of .061 today, to me this low price doesn't make sense, and I am buying as best as I can at these levels

[blindman28]

Found a something regarding a home furniture boom going on right now https://www.npr.org/2020/10/16/924648203/furniture-industry-booms-despite-the-pandemic

" The pandemic has hammered some sectors of the industry, like commercial furniture. But home furnishing sales are booming"

"The boom has been driven by online sales"

LUVU specializes in comfortable foam filled furniture for the home. through ecommerce sales..

[hweb2]

Yep that would be my guess. LUVU also had that bullish PR recently about increasing capacity. And they don't even get the equipment til early 2021. Things look good here for the next several quarters imo

[blindman28]

So that would put Revenue over 6 million and Net Income around 500k? being conservative

[blindman28]

PPE is just a bonus here. They grew 30% with very little PPE sales. LUVU is a growing profitable company in the Ecommerce space and one of the leaders in the Sexual Wellness industry which is also growing.

LUVU is not worth 40 cents a share when it got over extended on the Mask hype. and people have left it for dead . A growing company projected to do 20+ million in Revenues + 1.3 million in net profit is worth alot more than a 8 million dollar market cap.

Read the summary of this report https://www.businesswire.com/news/home/20201005005329/en/Sex-Toys-Market---Actionable-Research-on-COVID-19-Increasing-Popularity-of-Sex-Toys-to-Boost-the-Market-Growth-Technavio

[hweb2]

LUVU financials look great. Revenues and earnings last quarter were up sharply vs. the prior year, and that's with hardly any temporary boost from PPE. The CC worth a listen. Guy was very monotone, but he said October sales were tracking 25-30% ahead of last year. With gross margins in the 28-30% range. Remember the current quarter is seasonally a strong one due to the holidays. So it should be another excellent comp.

[PennyStockTrader2]

I thought that the PPE was going to be the savior for this company, and I guess I got that totally wrong. Not that it cant stand on its own, but I was expecting this component to be huge. Hmm. So if we remove that part, we're back to where we started except the price is 3x where it was before all this started and maybe they finally are getting the sales that they had worked for for so long.

[jcseeker]

Net Sales and profits increase... demand is at an all time high. They have to purchase a new machine to keep up with production but the price goes down 10%. Sure glad the news wasn't bad if the price loses value on positive news.

If your accumulating on dips just curious as to what has to happen to move this higher?

[blindman28]

the problem is the stock got way over priced on the mask hype.

This 10-Q shows that they can be profitable 330k in net income with less than 1% in PPE sales like you said.

The next Q(historically their strongest Q) will be even better since it's the holidays and people will be spending more and more in the Ecommerce space. and that's where LUVU growth is

LUVU will have 20+ million in Revs and 1.5+ million in net income from now until next year.

I'm holding/ a strong buyer on any dips.

PPE is just a bonus here and not the true story

[hweb2]

Q1 earnings on Thursday morning. Should be another great comp based on the preliminary numbers provided in the Q4 earnings PR (below). Hopefully the stock will get a bump.


Preliminary Net Sales for the First Quarter of Fiscal 2021, ended September 30, 2020

Due to our diversity of brands, preliminary internal unaudited net sales for the first quarter of fiscal 2021 were over 30% higher than the first quarter of fiscal 2020. Preliminary first quarter unaudited net sales were approximately $5.3 million compared to $4.1 million in the first quarter of fiscal 2020.

Louis Friedman, Chairman and Chief Executive Officer, commented, "I'm pleased with the preliminary sales increase during our first quarter of fiscal 2021, despite sales of medical PPE being less than 1% of the total sales for the quarter. Our lines of consumer brands continue to attract new customers and, as a result, I expect to see continued strong demand across our three major consumer brands as we approach the holiday season."

[blindman28]

Alot of buying pressure on friday but was painted down at the very end of the day. i noticed mm PUMA finally disappeared on the ASK which may mean the seller is done. I have a really good feeling about this quarter.

Ive have gotten slammed trying to predict things the past week though

[hweb2]

Stock is super cheap with earnings over .01/share last quarter. Should have another favorable earnings comp this month. And we got that positive news recently about the company expanding their production capacity into 2021.

LUVU has the fundamentals to trade in the .20's or .30's, and it would still be undervalued. Yet there's a large seller below .10? I don't get it. Look at today's trading. Think I saw a couple of separate 100,000 share bids. Both times they got hit. Nice to see some buyers stepping up, but who the heck is selling! Hopefully they're almost out of shares. If so, stock could rocket higher from here imo

[PennyStockTrader2]

got filled at 8 cents on the downdraft the other day. I'd like to see this start to climb back to 15 cents.

[PennyStockTrader2]

well, there you have it, it has pulled back and I have started buying some, it could certainly have another drop so we should have GTC orders in place in case it does.

[swampboots]

Nice .02 find, paid me my .103 just to watch.

[blindman28]

someone on the yahoo msg board said they where selling 400k shares

[starkd748]

I'm a buyer below 10...This hit a 5 count

[Traderfan]

That flash crash yesterday was indeed scary. Good luck.

[PennyStockTrader2]

yeah I got so tired of waiting at 3 cent range, there was like no volume and it went on for a very long time, I should have been more patient with what I had. Anyway I have made money here, and I would like to continue to do so, it's risk and reward, and I dont like those sudden dumps and would rather be a buyer when and if they occur, need GTC orders in place to do that, maybe they're just flukes. Good luck to you and congrats on your patience here!!! Meet us over at Mr. GE if you want to see fireworks in the near future.

[Traderfan]

Note that I didn't say the stock necessarily goes higher, nobody can say that because nobody knows that. I was merely arguing about fundamental valuation and that has nothing to do with gut feelings, the stock is undervalued by a valuation metric IMO but again that doesn't mean the stock will continue to go up, different things. And yes at 03 the business wasn't much worse, it has better profitability for now than back then but back then it was about the most undervalued stock out there and I made a case about it often since I bought all the way down to below 02 and said so here.

[PennyStockTrader2]

Its just a gut feeling, not more than that. The stock traded at like 3 cents forever, and now that its made some improvement in revenues and profits it's trading 5x higher, ok, maybe its worth more, but I am letting the market determine that, especially after those dumps we've seen a couple times. I'd rather be a buyer on the dumps than be holding a lot of shares when those dumps occur, granted I still own shares now, but I would not be overboard at 15 cents and am a steady seller from here on up.

[redangus200]

Dip and rip
Let’s go

[Traderfan]

So fundamentally it's not clear to you that a company that does 5+ million in revenues now PER QUARTER being nicely profitable, is undervalued at 9 million market cap? What is your definition of fundamentally undervalued, just wondering?

[Traderfan]

Crazy with a market cap of about 9 million.

[PennyStockTrader2]

It's not clear to me based on these numbers whether the stock is overvalued, undervalued, or on-par. I want to see what the market thinks tomorrow morning. The mid morning dump was interesting, wish I had a bid out there to have captured something.

[redangus200]

It’s gonna bounce back strong tomorrow

[redangus200]

Net sales increased 37% to $5.5 million.

-- Total gross profit of $1.8 million, up $937,000 from the prior year.

-- Gross profit as a percentage of net sales increased to 33% in the current

year from 22% in the prior year.

[jcseeker]

The company posts record sales and the stock goes down 25%. This is one wacked up market. Still looking forward to the conference call in the morning.

[Traderfan]

Q4 out which was a monster quarter apparently. Q1 shaping up to be another quarter above 5 million in revenues and most likely big net income just like in Q4. Not too shabby.

[redangus200]

Nice steady rise
I’m still buying dips

[jcseeker]

It's been holding steady but I too believe it's going up by months end. Earnings are going to move this one. I'm also expecting some type of big news from them. We'll see... but I'm accumulating.

[redangus200]

I’m adding as much as I can before earnings Sept 28
This may triple

[PennyStockTrader2]

this is just stuck in the mud. Still hoping to see a pop to the upper teens.

[redangus200]

Adding a few thousand here
Great earnings projections

[redangus200]

I agree it’s just not flamboyant and flying all over the place this is a pretty solid little company with some very good projections

[jcseeker]

Why has this fallen out of favor with so many? Not even a moderator anymore. Seems like a no-brainer accumulation with record earnings being released next month.

[stocktrademan]

LUVU buy 0.12775

https://www.luvubrands.com/

https://finance.yahoo.com/quote/LUVU/profile?p=LUVU

https://www.barchart.com/stocks/quotes/LUVU




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[redangus200]

BUY !
Co is doing EXCEPTIONALLY WELL this qtr. Sales should be $18 - $20 mln this year, may report PROFITS.
Current market valuation is just $8.5 mln
Hired ~25% more employees in last 3 months to keep up with demand of #Furniture #PPE #Masks
#Buy imo