Replies to post #66010 on Savvy Trades and Investments

[misterp]

Thanks! Q3 and especially Q4 are indeed seasonally slower.

I think that the stock remains really cheap, even after the 30% run up.

The stock trades at a PE<6 with several areas of potential growth:
- Further online sales growth (the company introduced a new online only product in october which grew to one of the top rankend products quickly).
- additional sales via Walmart, if succesful could open the door to add more products
- Small acquisitions (I believe that there are plenty of sub-scale competities)

The 10Q also shows that current shares outstanding are 77k lower, than the number used in the EPS calculation of Q3.

With regard to illiquidity risks, I agree that this can be managed by position size. It is also my experience that highly liquid stocks quickly re-rate with bad news and therefor not always provide the opportunity to sell with a limited loss.