Savvy Trades and Investments

[maxluke1]

BRLT/CTHR - just wanted to mention this stock for those who follow CTHR. Been trading BRLT (recent IPO) over the last two months and wife and I have some in our retirement accounts. Volatility is high, which is great.

It's a bigger and much better run version of CTHR. Additionally, a large ESG angle and moissanite angle too. Very popular with my cohort.

Like many specialty/internet retail plays, it trades at a high multiple, but I still think there's decent risk reward here over the next several years.

Some details:
~100 M shares outstanding (lots of errors with the market cap estimates on multiple sites because of the share structure)
~40 to 42 M in EBITDA this year
~15% adjusted EBITDA margin at this point (I think they can easily ramp this up over time, hell even CTHR does 15% margins quite often)
-Right now, it's 35 EV/EBITDA, but for 2022 it looks to be trading at somewhere around 20x EV/EBITDA, which isn't terrible.

Other context: online competitor Blue Nile was bought out for $500 million in 2015. It has less website traffic than BRLT (4.8 million vs. 6.8 million based on SimilarWeb) and is probably growing less quickly.

I'd say downside risk is 10 or 11 and would load up at that price (would take quite a market pullback to get there I think).

I'm also interested in CTHR in the 2.70s or so. Moissanite search traffic is trending well:

Moissanite Search Traffic

All is just my opinion.