Replies to post #130515 on Savvy Trades and Investments

[SSKILLZ1]

MNTN

Brought back MNTN today at $8.31 after selling at higher levels before earnings. here is what I like.

1) MNTN reported seasonally weak q1, part of why I sold, was I thought the market wouldn't like the sequential drop in earnings from seasonally strong q4, and the stock has been weak since they reported there earnings. They earned .15 adjusted in seasonally weak q1, to be fair , I thought they would do about .12-.13 so they actually exceeded my expectations. With making the necessary apples/apples comp, they would of earned .06 last year adjusted. So growing EPS from .06 to .15 is nice growth.

2) MNTN Slightly raised adjusted EBITDA number although my belief is they are being very conservative. I thought they would earn about .95-1.00 before this quarter, but now I think they could earn $1.00-1.10 this year I see no reason why this growth story shouldn't get a 15x multiple at some point, but heck even at 12x would be a great return from current price. Putting FV in the $12-13 range when we are buying in the low 8's. Now each quarter gets seasonally stronger hence I think this will help the stock for the rest of the year. Longer-term though I think they will receive a 15x multiple which could eventually get the stock in the mid to upper teens over the next year.

3) MNTN has an excellent balance sheet with $2.71 in cash, so that is a plus.

4) MNTN is also growing rapidly and is one of the best growth stories in my portfolio. Look at the growth of the customer count here.

MNTN Active PTV Customers

 
 q4 2023 1,426 
 q1 2024 1,578 
 q2 2024 1,746 
 q3 2024 1,990 
 q4 2024 2,225 
 q1 2025 2,647 
 q2 2025 3,020 
 q3 2025 3,316 
 q4 2025 3,632 
 q1 2026 3,874 
 

Conclusion: I like MNTN here, it is a great growth story, with a healthy balance sheet, and a very cheap valuation given it's growth rate. All is just my opinion, and I could always be wrong though.

[SSKILLZ1]

SSKMP Trades

Buy 100 Shares of CNXC
Buy 200 Shares of FOUR
Buy 400 Shares of UPBD

Note that this is a fictional portfolio and is not a recommendation to buy or sell securities