Nice find on SGMA and Wagz. $1.5M revenue last year for Wagz. Very paltry like I figured. I don't know how much upside there is, as a $200+ dog collar isn't something a regular person can afford.
Why'd they do the deal? SGMA & Wagz have had a business relationship for years. SGMA was making the collars. Management of both companies might be buddies. Maybe Wagz was going under. Who knows. I think SGMA thought this may have been a good deal a year ago when the stock was at $3 and their business wasn't doing too hot. Now they're seeing strong demand. Maybe that's why the deal took so long to close. Not sure.
Anyway good luck with it. I think it'll be a good one into the September earnings report as they're gonna recognize a huge PPP forgiveness gain. My last SGMA post for awhile as I've made way too many posts about it lately.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.