Best LEAP Play for nice tendies
I’ll start with the TA on $LOTZ first, since I’m a day trader before anything. Currently it’s positioned at a nice fib pivot and support area. MACD positioned well below 0, but just recently provided a buy signal as of today. RSI isn’t healthy enough for me to become bullish, but this isn’t necessarily a bad thing, considering that it still gives other retail traders time to get in at a nice price, and not near the high. There were some been dark pool activity near recent support levels, and there was some interesting bullish flow as well. I’ve yet to see institutions leave that flow, so I like the idea that smart money is pouring into $LOTZ as well. I’d say that there’s a great chance that $LOTZ has reached a bottom, and has strong support established and that it should began to consolidate here leading into it’s next earnings.
Now let’s go into a tad bit of FA. As we all know currently, they have 300M cash on hand from their SPAC deal. This can help greatly with them expanding their footprint, but there are variables out there. We don’t know the cost of expansion per hub. The company expects revenue of $42M-$46M in Q1 and $335-$375 for the full year of 2021. Their sales in their last quarter increased 40.15% from the same period last year. Their unit sales (1,815) for their last quarter beat expectations. This was a 12% increase from the same period in the year prior. Gross product increased by 25% from the same period in the previous year.
These are the expectations for their Q1 2021 Earnings being reported on May 10:
- 3 Hub openings (Seattle, Nashville, Orlando)
- Retail units sold of 1,900-2,100
- Net rev of 42M – 46M
- Gross profit of 1.6M-2M
- Retail GPU of $1,300-$1,500
- SG&A expenses of 17M-19M
- Net Loss of 16M-15M
A few recent highlights– Hubs in Orlando & Seattle was recently opened as planned. The Nashville Hub was opened as planned, and currently Charlottesville is scheduled to have a hub opened in May. A relationship with Ally Financial was expanded on and announced on March 11.
Bottom line upfront: I really like the technical setup with the potential that $LOTZ currently has. LEAPS are very cheap and affordable right now for retail investors looking to expand their portfolio in the consumer sector. $LOTZ is expecting to report Q1 earnings on May 10, 2021. I am currently long/bullish on $LOTZ. I do hold commons, LEAPS, and May 21 (10 strike) calls that I’m currently up 194% in
Processing img tzy8zw8nbmx61…
via r/wallstreetbets https://ift.tt/3qhG8Zq
May 6, 2021 at 08:33PM