5 Cheap Stocks to Buy Now! Under $20
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Today we chat about 5 cheap stocks to buy now! These stocks are all $20 or under. I think these 5 stocks are among the most intriguing stocks under $20 in the entire stock market right now! LMK if you think these are stocks to buy now or just stocks to watch!
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Well guys, today in this video, we’re going to talk about five cheap stocks that I actually like a lot at their current prices. Nevermind if the stock has dropped anymore, I actually like them just at their current prices alone. I think these are actually five good money makers.
I know you guys love a video like this where we go really in depth on all five of these different stocks, we’ll look at them very in depth, I’ll give my bullish thesis around these five cheap stocks into depth.
So I know you guys absolutely love this case, all five stocks we’re talking about here in this video here they are under $20 a share. Okay, so you know, pretty cheap stock. So you know, it’s not like we’re talking about Amazon that’s $3,000 a share and Tesla that’s like 15 $100 a share.
And Google that’s, you know, 1000 plus dollars a share. Now these are, these are, these are pretty cheap stocks. And he does say okay, in all five stocks have nice growth potential over the next five years, in my opinion, all five of these stocks are actually going to grow revenues quite considerably.
Some of these companies are actually going to become profitable companies, in my opinion, some of them that are already profitable, will just become more profitable over the course of the next five years. So I love these.
And by the way, one of these stocks is actually under $5 a share. Okay, so we’ll go in depth on all five of these stocks. And I hope you guys enjoy this. As always make sure you smash thumbs up. If you love a video like this, I could do more of these type of videos in the future.
So that lets me know that and just so you guys know link down there in the description, the second link down there is going to be to a video that essentially shows you exactly how I use my system to make over $100,000 on just one stock.
So if you want to check out that video when this one’s over, second link in the description down there. Okay, stock number one of five of these cheap stocks is a stock named Upwork ticker symbol, and this one is UP Wk right now is a $13 and some change stock as of today.
And this one, I really like quite a bit, let’s put it that way. Okay, if you’ve never heard of Upwork, essentially, they’re capitalizing on the freelance economy. So imagine you have a business. And imagine, you don’t have the ability to hire a full time worker to do you know, some sort of tasks, but you need something done out there, you can actually hire a freelancer on upwork.com.
And this is a website in which you can see how much that person charges, you can see reviews, you can see ratings for the individual, all those sorts of things, which are extremely helpful. If you’re hiring out for a project or something like that.
Like I said, a lot of businesses don’t have the funds, or just don’t really need to hire a full time employee to do a task that they just need done, you know, once a year or once every couple years, or something like that.
So Upwork is phenomenal for the freelance economy, you think about with everything that’s going on in the overall economic landscape with Ronnie Rona, more and more companies working remotely right?
That we’re moving more and more toward this freelance economy that ultimately benefits a company like Upwork in a massive, massive way. And guess who’s the biggest player in this space in the world? When it comes to freelance economy? It is Upwork.
Okay, so it’s phenomenal. And they make you know, trends and they make a lot of different money from a lot of different ways. But anytime, you know, somebody booked through Upwork, they actually make money from that. Okay, when you look at Upwork, it’s not a big market capitalization company.
This is a $1.6 billion market cap here as of today, which when it comes to stock market, $1.6 billion market cap is actually fairly small. So we’re not talking about some gigantic Corporation, when you hear the biggest freelance company out there, you would probably think all this must be a 10 or 20, or $30 billion company.
Especially with the way a lot of these tech stocks have seen their valuations rise like crazy over the past several months. But no, this is actually a smaller company. But look at the revenue growth for this company.
You know, it’s very, very impressive when you look at that income statement from $202 million of revenue back in 2017. To this past year, that reached over $300 million in revenue for the first time ever.
What you also see is gross profit expanding quite rapidly, okay, from 137 million in gross profit back in 72, all the way up to $212 million in gross profit this past year. So what we can decipher from those numbers are revenues growing, you know, quite rapidly gross profits growing quite rapidly as well. Very impressive.
Okay, now we’ll get to some troubling numbers, as you’re gonna see selling general and administrative have gone up so much. Why is this okay? Because Upwork realizes they’re going after a massive opportunity.
They want to make sure they win this market, as long as they win this market over the next 510 years, you know, this company’s valuation, revenues, profits, everything’s going to expand quite rapidly.
So they’re funneling literally every dime they can possibly funnel back into the business right now. And it’s hurting the bottom line because the bottom line they are losing money, they lost $16 million on the bottom line last year.
But when your business like this, and you’re going after a massive opportunity, does it make sense just to be profitable in the short term and make you know short term profits or funnel all that money plus some back into the business so you can expand this business bigger and bigger and bigger over time and go after a multi billion dollar opportunity right?
Would you rather be stuck at three 100 mil, and revenues five years from now 10 years from now, would you rather get to a place where you have a 1 billion 2 billion $3 billion run rate on the top line, obviously, you know, you’re gonna want to, you know, see your business flourish over time. So you want to just, you know, flush all that money back into the business, okay.
So essentially, when it comes to income statement, this company could be profitable today, literally, if they want to be, okay, balance sheet wise, very, very good balance sheet on this company, $145 million in cash and short term investments.
I love that I love a company that is loaded up with cash and investments, you guys know that, that gives you a lot of protection, that, you know, essentially, especially if you’re going to lose some short term money, it’s great to have a balance sheet where you gotta, you know, just a cash flowed around.
So you can you know, you can make it to another day, let’s put it that way. Okay, long term debt of only $8 million on this company, so they could pay off that long term debt tomorrow and not even know. Money’s essentially gone. Okay.
So phenomenal, phenomenal balance sheet on this company up work. Okay. What’s their main competitor? That’s what you might be thinking, you know, well, this is a big growing market freelance economy, they must have competitors.
Yeah, their main competitor, in my opinion, at least when it comes to public companies is a company named Fiverr. Okay, this company’s ticker symbol is FV are our This is our main competition, that is a stock that’s priced at, you know, 80 plus dollars a share.
And this is a company fiver, that is not even close to being at the scale that actually Upwork is I think you’re getting a far worse deal. If you’re buying Fiverr stock right now than Upwork. Fiverr basically has revenue in the past year of 107 million, they would need a 3x.
Think about this for a minute, they would need a 3x their revenues just to equal the place where Upwork at here today, in the losses Fiverr takes much bigger actually much bigger than Upwork, this company lost $33 million in the past year versus Upwork.
Lost what 16 million. Okay, so they lose double the amount of money when it comes to Fiverr. And they have three times less revenue coming through the door than then Upwork. Okay, so Fiverr is not that attractive, in my opinion.
And I think Upwork has a great possibility of you know, definitely beating them in this market long term. No, I believe this company is going to grow in future years, but you know, 10% plus per year for several several years into the future, like as far as I can see, essentially, and analysts believe this as well. Okay.
The current year, the company is expected to have sales growth of 12%. That’s top line revenue. Okay, next year 2021, that growth rate is expected to accelerate, okay, accelerate, that’s huge when you’re talking about growth rates that accelerate that’s really, really exciting.
Okay, so next year, his company is supposed to have almost 14% sales growth next year. And don’t be surprised if that number ends up being a lot bigger than that. When I say a lot bigger than that. Don’t be surprised if that revenue growth actually comes in at listen to this 20% plus next year, okay, do not be surprised at all.
So needless to say, I really like Upwork I like its growth potential. I like where the company is at I like its balance sheet. I like its market positioning, I think it’s going to thrive in the future.
And I look at it as a cheap stock right now that is ultimately going to become a much more expensive stock over the next five years or so. So that covers up work stock number two a five up here is a company named revolve group ticker symbol, this was our V, l v, okay, it’s a $15 and some change stock here today, if you don’t know revolve, they operate essentially an e commerce website.
Okay, an e commerce website that sells you know, dress, they sell a lot of different items on there. And they sell mostly to female customer base like females really represent like 95% plus of their revenues right now.
And I realized, like, you know, 85 to 90% of people that watch my channel are males So a lot of you guys probably won’t know revolve that Well, except for when you follow all those different Instagram influencers. And they’re always tagging revolve in there. Okay? And that’s what that’s how this company is built.
Enormous customer base is actually understanding the attention is really around using influencers in today’s day and age and you actually if you don’t pay the influencer, you know, to advertise your product on their posts and have that post gets 50,000 likes and 100,000 likes and people actually can click on and things like that.
And they’ve done an amazing job. You know, think about all the other competitors or department stores, they’re they’re so old school and they’re thinking they’re like oh, we’re going to advertise on television stuff like that.
It’s like that’s not that’s like that’s so old school that might have worked in the 80s and 90s but we’re in We’re in 2020 Okay, you use influencers to advertise your product is way under priced you get way more bang for your buck okay so me in the discord chat actually posted this the other day and it was essentially a video showing that right through.
I believe it was FB or I think it was actually it they were on you can actually click on the picture go rate to the products that that person had posted on it on those photos and actually buy directly through ag going Through revolv it’s absolutely amazing technology.
This company is just so like up and up on everything that’s going on New Age and all these different New Age changes that are going on and everything like that. It’s just a company is on the forefront.
They just understand this stuff and how to move fast, so much better than the old school department model of JC Penney’s, and Macy’s and all the you know, the old school companies that you know, used to make a lot of money from physical retail revolve is so new age, these guys, they make changes and snap of a finger.
Okay. Now, Ronnie, Rona obviously is hurting their business. I mean, it’s almost hurting every single business in the world, right. And obviously, a Ronnie roenick this year is hurting their business. So they’re expected to see revenue decline.
Now a little over 7% in this current year, however, okay, this is a massive growth company. Next year 2021, this company is expected to grow 22% Okay, expected to have very strong growth. And this is another one of those companies that I can see growing revenues, you know, double digits each and every year for as literally as far as the eye can see.
I mean, they’re growing top line 10% Plus, year in year out, it was so many of these physical retailers, right, there’s so clothing items going out of business right now. And we’ll continue to over the next year to think about that.
That’s just a massive, more market opportunity for these companies. Because, you know, folks might have shopped at, you know, this retailer, that retailer and then all sudden, it’s like, oh, we can’t shop there anymore.
So where do we go? Oh, we go online. Maybe we go in when shopping revolve. So this company should be in massive growth mode for a long, long time to come. Okay, the company right now has a market capitalization of only 1.1 billion.
So another one that has a smaller market cap company, you know, especially when you’re talking about the stock market, and you know, we’re gonna be some of these companies can be at 10s of billions, or hundreds of billions of dollars in market cap, heck, there’s some region trillion dollar plus nowadays, right?
But look at how much the valuation has come down, just over the past, you know, few quarters, okay, this company used to be priced at a $2.36 billion market, right now you’re paying 1 billion or so for this company.
So it’s come down considerably, it’s a much, much better deal than if you’re buying it a few quarters ago. Let’s just put it that way. The thing that’s tricking people right now, is a Ford p looks super high. Right?
Well, super high is also a relative term. I mean, look at Shopify, they’re trading at a 10,000. Forward p, okay. But revolves trading at 112 right now. So people are looking at that and like, oh, man, that’s really high.
Well, what what they’re being tricked by essentially, is the fact that ronnie Ron is messing up the business short term that’s gonna subside as we go throughout 2021 profitability will return for this company, and probably in a bigger way than we’ve ever seen for this company.
And so the four p metrics, you should really be looking at my opinion, were what they were trading at a few quarters ago, I think, really, if you’re going up to quarters, plus, and you’re looking at a four p based upon 2021 numbers.
I think we’re really more in the 15 to 20 range on this stock as of right now versus 112, which is what you just look for in Yahoo Finance. And that’s why you really got to think about you know, these type of growth stocks differently than just looking at as simple as well, they’re gonna make this over the next quarter this over the next quarter.
You really got to be looking at 2021 What’s this company gonna likely make 2022 and you’ll start to realize, Oh, this deal is you know, this stocks quite a deal right now. Okay. It’s quite a steal. Let’s put it that way. Okay. Phenomenal balance sheet.
Okay. So we covered you know, income statement, great growth expect in the future, a management team that is so up on New Age changes, and just they move so much faster. Anybody else in the balance sheets, phenomenal, 100 and $3 million, just sitting around in cash. Remember, this isn’t a big company, what a $1 billion market cap 103 mil.
We’re talking about 10% of their market capitalization is just in cash and cash equivalents, right, current debt right now of 30 mil on this company. And that’s really all they have for debt on this company as of right now.
And that 30 mil is only because they took out a line of credit just because of the ronnie Ronan situation, they just want to make sure that you know made it through this and all those sorts of things so they can get to the other side where the massive opportunity is.
But speaking about the massive opportunity, I see a 5x 10x opportunity in the stock over the next five to 10 years, in my opinion, when I look at the growth rate of this company, when I think about the profitability.
This company is going to have three years out five years out seven years out, when I think about how less competitive the clothing industry is getting over the next few years with so many companies that are just going under right so many these companies have been, you know, the I’m talking about physical retailers, right.
So many of them have been barely making it for the longest time. And the Rooney Rule is going to be the last thing that just kind of puts a lot of those ones under, it gets out of that whole discounting model.
And just a very negative business model, when it comes to selling clothes in revolve is going to capitalize on that five to 10x opportunity. In my opinion, this is one of the few stocks I hold that I feel like has a true 5x 10x opportunity.
And I really feel like that with revolve. It’s a $1 billion market cap, I could easily see this company getting to a $5 billion plus market cap over the next 510 years as long as they continue to execute.
And from what we’ve seen with this management team, and how fast Same move and how, you know, they’re just up on all the new age changes, social media, understanding how to use influencers, like, like, this is a company that is primed for primetime.
And I think, you know, in another five or 10 years, I think this won’t be some little small company that only few people know about. I think this will be a massive brand that you know, uh, you know, massive amounts of people shop on let’s just put it that way.
And so I definitely love the revolve, okay, stork number three of five up here is take take take the Cheesecake Factory, so this was technically just barely over $20 is $20.57. Today, I really like this one as a value stock, you know, the first two stocks were really you know.
Around growth rates and, you know, exciting growth rates a 10% plus revenue growth for years and years come in the future Cheesecake Factory is a value play, let me be very, very clear about this one ticker symbol is cake.
By the way, if you didn’t know, Cheesecake Factory, I mean, you guys probably have been to their restaurants, you’ve seen their restaurants before. It’s just massive menus very profitable business model. And people literally from all over the world because they do have locations literally all over the world, but they’re mostly in the United States of America.
Okay, so they own that brand, which is their, their main brand, that’s massive, okay, they own a phenomenal growth brand called North at value, okay. And this is, this is a company with maybe 10 or 20 locations right now, that long term, they’re talking about 200 locations in the United States for this North Italy brand, okay.
And this brand, they actually are, cater a little bit more high end, folks get a little more alcohol there. So average checks a little higher for this brand, but it’s a phenomenal brand that I think has, you know, huge, huge expansion opportunity. They just bought this brand last year.
So it’s gonna be fun to see how you know, cake builds his brand out over the next 10 years, obviously right now with you know, Ronnie Ronan’s situation, Kate is so worried about getting through this situation. But as the company comes back starts thriving again, they’re going to be able to build out this brand.
This North Italia brand in a massive way, in my opinion, over the next decade, the company just has a you know, phenomenal inside outside vibe in their customer base is really everything across the board. I’ve seen folks there, you know, in their late 20s. I’ve seen folks they’re in their 60s 70s.
You know, it’s just, you know, it’s anybody if you know, somebody wants, you know, a nicer Italian experience, they go to North Italy, okay, then they want another brain called flower child. And their motto is a healthy food for Happy World. I haven’t tried this one yet. I’ll hopefully try this one within the next week or so.
And this is a brand just got a few locations right now. But if you’re thinking about where this company can go over the next decade, potential, you know, upside there, I’ve still got to experience that one for myself, they do own some other brands, as well.
But if you’re thinking about the three kind of main ones, you know, those are kind of the three main ones with North Italy being the huge opportunity to expand. And then obviously Cheesecake Factory, they can continue to expand that and bring that business back after coming out of this whole, you know, roadie run a message, just put it that way. Okay.
So when we look at cakes revenue, it’s just a solid value stock, let’s just put it that way. There’s nothing insane going on here what the income statements like just solid 2.2 billion and they do 2.3 billion and then do 2.4 billion, look at gross profit 963,000,960 5 million, then 1.0 to $1 billion in gross profit, right?
We look at net income 157 mil than 99 mil, then 127 mil. So basically there’s a company that’s going to have net income of anywhere from 100 mil to 150 mil in any type of normal economic environment, let’s just put it that way. Okay, solid, just a solid company, okay.
But here’s where it gets really interesting with cake. Okay, if cake was at a valuation of $2 billion, or $3 billion is not a stock that interests me. But when we’re talking about a market capitalization on the stock of less than $1 billion, it gets really, really intriguing because this is a company that usually trades at $2 billion or more when it comes to market capitalization.
Right now, here today, actually 935 million if you’re buying the stock here today, you’re paying $935 million market cap. And this gets into my whole perspective on the stock words of value proposition, it’s just a really, really good value.
There’s not like this, you know, there’s going to be a blow the top off growth company where they’re posting, you know, 3040 50% revenue growth, but it’s just going to be a really, really solid company that will be able to expand that North Italy brand as well as potentially that flower child brand bringing some nice growth and get this net income back on the right way.
And we’re only paying 135 million for this company has already adapted to the whole environment we’re in right now. Right which is you know, potentially restaurant closures to go food is a big thing at Cheesecake Factory.
They actually have you know, several spots in their parking lots dedicated just to folks that drive up and literally just you know, call a number and people you know, bring out the food to them. This is something they were already prepped for before this Okay.
Then they’re also prepped for delivery. Okay, they have a deal with doordash right now and expect more deals to potentially be coming in the future when it comes Cheesecake Factory so you know, people that just want to go in and out To order the food and have it delivered to their house is another big opportunity for the Cheesecake Factory and you think about this, right?
You know, look at this, this just came out of California recently California orders closure of bars and indoor operations of restaurants. Obviously, that’s a negative for Cheesecake Factory. But I can tell you it’s much less of a negative for Cheesecake Factory than it is for a lot of other restaurants that aren’t really ready for delivery to go food, things like that.
Okay, the restaurant industry is going to go from the most competitive effort which the last couple years the restaurant industry has been the most competitive it’s ever been wages have been going up. There’s been so many restaurants and quick serve places that have opened over the last five or 10 years and a lot of them barely make it okay.
It’s not like a lot of these places are making money hand over fist. So it’s going to go from an environment my opinion, where we’ve got the most competitive to the least competitive from 2021 to 2023.
I think the restaurant industry is going to be the least competitive. We have seen it, especially in the United States of America, and at least a decade or so if not several decades out there. A lot of these restaurants let’s be honest.
While a mom and pop restaurants, or a lot of these restaurants in general, even some of these chains that were barely making it before and Cheesecake Factory is not in that group. Believe me Cheesecake Factory is a company that makes 100 million plus a year on the bottom line.
I’m talking about these other companies that you know are losing money even in good times or barely making slight profits. A lot of them are going to be going under Look at this. Okay, let me read you this off here.
The NYC hospitality Alliance recently found 80% of the city’s restaurants did not pay full rent in June back in Los Angeles, Ty decided to close her Korean town restaurant for now the landlord for the spot has forgiven her rent for the time being her Silver Lake restaurant is still open for delivery and takeout.
She said her landlord won’t negotiate that rent, she’s had to layoff 60 people, she still can’t break even on the amount of business she is getting. She says quote, there’s just not enough. So what are we going to do, we’re just going to wait until we get kicked out.
I guess. And unfortunately, that’s the truth for massive amounts of restaurants right now. Okay, a lot of these quick serve restaurants and restaurants in general, they’re just not going to be able to make in this whole deal. A lot of them have already closed shop.
And you know, expect over the next six to 12 months, a lot more of these companies just unfortunately, just not going to make it and they’re going to end up going under Okay, they’re not like in a position like cheesecake factory is where Cheesecake Factory just raised $200 million on April 20.
Okay, $200 million, you know, these other little restaurant chains, or even the the mom and pop places that barely make it as it was, they don’t have access to capital like that they can’t just get $200 million in their bank accounts is completely unrealistic.
So which means you’re gonna see a lot of restaurants go under over the next six to 12 months. And what ends up happening in a situation like this is a strong get stronger, okay, the strongest stronger, the big guys like a cheesecake factory will get even stronger, this whole scenario, they’ll come out of this stronger than they’ve ever been before. And the weak get weaker.
So a lot of these restaurant chains, and a lot of these restaurant owners that were you know, just trying to barely make it and whatnot, and weren’t really focused on how to grow the business. And you know how to operate in the New Age with delivery and to go food and things like that a lot of those folks just won’t won’t make it.
They’ll get even weaker, and a strong get even stronger. And I think cake will be one of the strong that get even stronger in the restaurant industry as we come out of this whole situation. So when it comes to Cheesecake Factory, I don’t think there’s a massive upside here for the company.
But I do think, you know, to x opportunity over the next two to three years is pretty realistic in the stock, I can definitely see it going to $40 you know, within the next two to three years, business will start coming back somewhat in 2021.
And I think business will really start to pick up in 2022 and 2023 once running run is you know, a long distant event. And so for me to see the stock at $40 Plus, you know, basically in two or three years, I think it was very realistic.
The stock, you know, if you go back to 2017 this used to be a $60 plus stock. Okay, I can definitely see going back to 60 Plus, I think it’s going to take longer to get there but I’ll be completely honest with you. I think we’re looking more at about five years from now.
I think not only will the company have to get back to big profitability again 100 mil plus on net income, but I think they’ll have to get to a place where they’re expanding that North Italy chain from a place where you know they have 10 to 20 tools and 50 locations then 75 locations then 100 locations.
I think once that really starts ramping that revenue growth the comp store sales come back and then you add on the profitability that’s when it becomes a game changer for this stock. And that’s when the stock you know potentially reach $60 plus again but like I said I think that will take about five years on the stock 405 up here this one is real.
It is real, real real okay ticker symbol on this one, our e a l the real real Okay, this is a $12 stock here today stock number four of five. So if you don’t know who the real real is a company that essentially is a marketplace for folks that own some high end products out there but want to go ahead and resell them because maybe they have too many purses and too many pairs of shoes.
And so they’d rather you know, get some income from that either because they have to, or because they want to. And so they go ahead and can sell on something like the real real which is way better than selling on something like eBay when it comes to high dollar items.
You know, a Gucci bag, or you know, some some clothing item from Valentino or Louis Vuitton bag or some Christian Louboutin heels. product, you know, Stella McCartney, like all these different brands, right?
That are very high end brands, you don’t really buy something like that off eBay, because who knows, it could just be you know, a Chinese fake or something like that. The real real actually has people that actually look at these products, especially anything that’s on the higher end brand names, you know, anything that’s priced, like you know, $1,000 plus.
That’s you have people that look at them, inspect them, and actually make sure the real real okay. And I think that’s really, really big from a buyer sentiment versus buying on something like eBay or some of these other marketplaces, including my wife, you know, she loves a good bargain.
She loves a good deal. She doesn’t want to pay you know, full price for some, you know, Christian Louboutin heels or whatever, the red bottoms. And so what does she do, she actually bought he buys them off real real.
And, you know, she likes to do that she saves yourself money, and it’s good all around. So think about it this way. Okay? If you want a high end brand, you know, a Louis Vuitton, or any of these other brands, Gucci Prada, whatever, okay, you buy from the real world.
So think about it this way, it’s way better for the environment, right? rather than, you know, somebody’s just always buying new, it’s good that these these bags or clothing items, or shoes, high heels, dresses, whatever is much better.
They’re they’re, you know, sold to somebody else who actually use them, rather than just stored in a closet. I mean, we all know, you know, a lot of people that that have money will have 50 100 pairs of high heels and, you know, handbags galore.
And I say, Well, you know, that’s not really the best thing for the environment, it’d be much better if they had five or 10 of those, and they resold the other ones to people who would actually use them, right, it’s much better for the environment overall, rather than making new constantly, right, it’s better for your pocket, if you’re a buyer out there, right?
You know, you can get some times you know, 50% discount on something that’s lightly used versus buying it, you know, brand new, it probably doesn’t look that much different, you buy brand new, and you might pay a 50% premium.
So you could buy two things that are that are used on there, rather than just buy one thing, right, better for your pocket or just buy one thing you just saved yourself a bunch of money, right? It’s better for sellers think about it if you’re somebody that needs money, or would just you’re just looking at your closet and like I got too many fancy dresses.
I need this one of these dresses, it’s much better, much better for sellers they can go ahead and sell on there. It’s so much easier than dealing with something like eBay I mean, it’s like night and day okay.
If you’re coming from a seller perspective, much better for buyers like we already spoke about then buying off something like eBay the protection you have from the real real is at a much much higher level when it comes to these high end items.
Okay, and ultimately when all those things are produced, it’s better for the real real rate is much better for their business overall. Okay? No, Julie Wainwright she’s the one that runs this company.
I’ve watched several several several interviews with her now and I gotta say she’s a cool lady man she’s like that fun and at the party like just gets the party going is talking to everybody has got a glass of wine in her hand.
She’s a she’s a cool, but that way but she’s done a really good job growing this company taking it public. The I mean look at the revenue growth over the last several years for this company. It’s been amazing from 137 mil back in 2017 to 318,000,020 19 look at the gross profit from 87 mil back in 17 to over $200 million gross profit this past year.
Now the business has expanded operating expenses enormously. Why is this well the company went public you know, that was probably about a year or two ago now. And so they want to show you know unbelievable growth plus they understand you know, they just want to be the brand name when it comes to if you’re thinking about buying a luxury item that you know previously used.
They want to be the brand name for that so they’re trying to capitalize on this massive opportunity of spending like crazy on the business and it has produced a company massive losses okay massive losses look at the loss they took in the past year $100 million absolutely massive losses no doubt about that.
So amazing revenue growth, but amazing big losses still okay. However, in my opinion 2021 is a year this starts reversing okay. And the losses get less and less and less over the next couple years in this company will be able to get to a place where they’re profitable In my opinion, okay.
The company also has $300 million in cash sitting on the balance sheet right now which is a phenomenal phenomenal number four a company the size of real real which is a very small market cap company okay?
And they have no debt, no current debt, no long term debt all they have is a capital leases they have to put on there but you can’t in my opinion don’t really count that As long term debt, so in terms of real real, they’re in a phenomenal balance sheet situation, okay?
Now think about this back when the company went public or so, I mean, this used to be a 28 $29 stock compared to today as 12 bucks a share, you know, a lot of folks on Wall Street have been, you know, just quite scared of it, because they’ve seen the massive losses and not really understanding, you know, that’s just for, you know, those massive growth numbers.
And ultimately, once they get the brand name and customers shop on this service, over time, people will continue to come back and shop at the service. Okay. Now, remember, I told you guys, I think this is going to start reversing in terms of losses, and it’s going to become less and less less, the company will end up getting to profitability a few years from now.
Okay, so look at your GPS, negative $1.81. That was a massive loss. Okay. This year, even with Ronnie Warner analysts have them losing about $1.25. Okay, next year in 2021 company is expected to lose 82 cents.
So you see there, they’re likely going to make considerable progress over the next few years, on losing less and less money and hopefully getting that other side by like 2023 and actually reaching profitability. Meanwhile, the company should still grow rapidly top line, this is a company that is expected in 2021 to grow revenues by a whopping 43%.
Guys 43%. Okay, we’re talking about Oh, Holy smokes, this ain’t no joke is tight growth rate, okay. 43% is no joke is okay. Look at this comment. I’m just gonna leave it off here with this one. That’s, that’s true, that comment is true.
Okay. And so when we look at the market capitalization, his company is a billion dollar market cap. And I would kind of put this as a wildcard stock, I’m not sure like, like how big the upside potential is here with real.
I know, it’s a lot higher than where it’s at today. But I really, I can’t really like grasp how big the opportunity is, with this one, I’m not sure if this is like, could be a $3 billion company in the future, like a 6 billion or like a 10 billion. So I’m still trying to figure out how much upside potential there is here.
I’m much more confident revolve when it comes to just figuring out, you know, the potential upside. But at the end of the day, when it comes to this company, I mean, you know, they should grow a lot more than then where they’re at.
And the other thing with the real real, I think it’s a perfect buyout candidate, meaning I think this company could end up getting sold to a big tech company, eventually, I just think it I just think it’s perfect for that, especially since they’re losing money, and they’re really chasing a big opportunity there.
Something like Amazon, Amazon’s made several these deals in the past with their $1.5 trillion mark, having Amazon could buy this tomorrow, and not even know the money’s gone, okay, let’s just put it that way.
And you know, the price would obviously, you know, get a big spike off. Remember, when they bought Zappos back in 2009, you know, I could definitely see them potentially buying out something like the real real if we’re thinking about another big tech company that could potentially be interested in buying something like the real real, it could be a company that.
I owned FB, right, the FB with all their integration shopping, and then trying to expand the shopping category over time. Couldn’t make sense to buy out real real and then go ahead and you know, very flawlessly, kind of integrate that into the product.
So you know, who knows, I think a big tech company could be potentially interested in this look at FB, I mean, that’s the $60 billion in cash and cash equivalents. They could buy this company tomorrow, not even notice that money’s gone.
So real real, I think it has some some pretty good opportunity over the next five to 10 years. Okay, stock number five of five up here, I promise you guys a stock under $5. I did indeed do that. And this is actually a stock that’s under $2 here today.
And as the planet learned 13 ticker symbol p L, and h f on this particular one, I’m not going to go into a big presentation on the stock because literally just yesterday I talked about this stock on financial education too.
So if you want go to financial education to on YouTube, and go ahead and watch that video here, the video says I just bought 8500 shares that goes into my bullish thesis around let’s talk some breaking news that happened around that stock that I really like and things like that.
Okay, so anyways, I hope you guys enjoyed today’s video. As always, make sure you smash that thumbs up button. I can do more of these type of videos in the future and check out the second link in the description down there that goes into how I made 100,000 plus dollars on just one stock using my system. Thank you for watching and have a great day.