Investing in growth companies: The over arching statement is 'This is a growth stock, and by default a high risk investment', i myself have never stated otherwise, and have posted numerous times on the topic. Otherwise, my position after due diligence is this is company with much lower risk in the range of 'high risk' investments. The company has shown continued growth, only continues to increase everything about the company, ESPECIALLY accounting controls, for the PURPOSE of continued scale. That is the narrative, that is the story. Supported.
The second part is the pink market framework itself. Investors should be well aware it represents a range, and MM and other factors play a huge role in the valuation.
The OUTLOOK on a growth company should not even BE LESS than 5 years. Otherwise, it is not an investment, it is just trading a position. Period, the underlying ticker would not matter.
So the due diligence, give rise to the question: Is this a good risk profile for my personal tolerance of a company? From all my due diligence, experience in growth companies, including several start ups prior to ipo/acquired that THIS company is highly performing and highly undervalued FOR the current state BECAUSE in the long run the reward is MUCH higher.
NO different than a VC investing in a Silicon Valley Start Up
The difference is those options get fooled around in a range with in the public while waiting for the company to reach next levels. This is why it in critical to do due diligence against the company over time. Maybe it doesn't reach all its targets, NONE of them do, but how are the markers of success? The Growth, the revenues, products, services, capabilities, underlying infrastructure, are controls being put in place? FUNN has consistently moved towards and accomplished a TON towards these things. It is NOT hidden. If there WAS toxic financing, MASSIVE dilution, LOW OR NO revenues, ZERO news, no tangible verification, no audits, no growth, than YEAH I would bail asap. However FUNN does NOT and marches towards GROWTH. Are the fundamentals perfect like a mature 20 year manufacturing company? Of course not. Are they in line with growth companies? Absolutely, in fact MUCH BETTER than MOST. Even BETTER than many companies on the NASDAQ. This cannot be refuted.
So, for the risk / reward profile, this company has enough evidence to show it is quite a legitimate growth company, good financials for a company at this stage, proven to continue down a path of growth and scale with new process and infrastructure, been fiscally controlled with no toxic financing and dilution is minimal, all friendly financing.
All equals quite undervalued.
So just like buying real estate, one can NEVER perfectly time everything, but over time one understands real estate rises over time above the current range for housing. Because they have done the due diligence and the risk / reward profile is sound.
No different here. It has been undervalued since the day they acquired Snakes and Lattes, even at .23. Period. The company is 10x stronger now. Period. All supported, tons of due diligence available.
I look forward to continued growth and scale, and with that 10 location new kick off, its all happening. Born from all the work that preceded the ability to get such a deal in place.
Highly Performing
Highly Undervalued
$FUNN
