Why is tattooed chef stock plummeting Thursday?
Shares of recent IPO and plant-based packaged foods maker Tattooed Chef ( NASDAQ:TTCF) plummeted in early trading on the NASDAQ Thursday after Kerrisdale Capital, an entity that promises to "tweet investment ideas," announced this morning that it is " short " shares of the company. As of 10:50 a.m. EST, Tattooed Chef stock is down 5.5%.
Should you be worried about tattooed chef?
However, Kerrisdale says it has seen Nielsen data showing that "Tattooed Chef retail sales in recent months are *lower* than summer levels, underperforming other emerging brands," so doing the opposite of what you'd ordinarily expect them to do. These are all worrisome comments, and judging from today's sell-off, investors appear to be worried.
What are tattooed chef's margins and EBITDA?
However, Tattooed Chef's management had previously guided for full-year gross margin of 20% to 25% and adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) of $2 million to $4 million.
Is Tattooed Chef a good long term investment?
No, Tattooed Chef is not profitable, it reported a net loss of $53.2 million in Q2. Keep on top of all the investing trends by using MyWallSt's shortlist of market-beating stocks so you too can accumulate long-term wealth. Start your free access today.
Is Tattoo chef a buy?
Key Points. Tattooed Chef is rapidly expanding but still had to lower its revenue guidance. The company is far less profitable than it initially expected to be. The potential upside makes Tattooed Chef interesting, but it's a risky stock.
Does Tattooed Chef have debt?
Tattooed Chef long term debt from 2019 to 2022. Long term debt can be defined as the sum of all long term debt fields....Compare TTCF With Other Stocks.Tattooed Chef Quarterly Long Term Debt (Millions of US $)2021-06-30$32021-03-31$22020-12-31$22020-09-30$212 more rows
Is TTCF short squeeze?
Weber (WEBR): Weber has been negatively affected by the volatility of broader markets and its disappointing performance. Canoo (GOEV): Reddit's WallStreetBets community helped Canoo thrive after a dip in the share price....6 Potential Short Squeezes to Keep on Your Stock Radar for April.TTCFTattooed Chef, Inc.$9.96BYNDBeyond Meat, Inc.$40.28ATERAterian, Inc.$4.973 more rows•Apr 20, 2022
Will TTCF stock go up?
Stock Price Forecast The 3 analysts offering 12-month price forecasts for Tattooed Chef Inc have a median target of 13.00, with a high estimate of 13.00 and a low estimate of 12.00. The median estimate represents a +102.81% increase from the last price of 6.41.
Who owns Tattooed Chef?
Sarah Galletti - FounderSarah Galletti - Founder & Chief Creative Officer - Tattooed Chef | LinkedIn.
How much is Ttcf debt?
Balance Sheet (Annual)Year20212019Total Long-Term Liabilities8.133.11Total Liabilities49.933.82Total Debt15.0614.13Debt Growth587.85%27.91%28 more rows
What is the most shorted stock right now?
Most Shorted StocksSymbol SymbolCompany NameFloat Shorted (%)BYND BYNDBeyond Meat Inc.40.17%VERV VERVVerve Therapeutics Inc.38.69%BGFV BGFVBig 5 Sporting Goods Corp.37.73%ICPT ICPTIntercept Pharmaceuticals Inc.37.73%42 more rows
What is the biggest short squeeze ever?
What Was the Bigggest Short Squeeze in History? The biggest short squeeze in history happened to Volkswagen stock in 2008. Although the auto maker's prospects seemed dismal, the company's outlook suddenly reversed when Porsche revealed a controlling stake.
How high can a short squeeze go?
If you short a stock at $10, it can't go lower than zero, so you can't make more than $10 per share on the trade. But there's no ceiling on the stock. You can sell it at $10 and then be forced to buy it back at $20 … or $200 … or $2 million. There is no theoretical limit on how high a stock can go.
What happened
Shares of recent IPO and plant-based packaged foods maker Tattooed Chef ( TTCF -5.76% ) plummeted in early trading on the NASDAQ Thursday after Kerrisdale Capital, an entity that promises to "tweet investment ideas," announced this morning that it is " short " shares of the company.
So what
In a six-part tweet, Kerrisdale listed its concerns about Tattooed Chef, which range from slowing sales growth, weak profits, and a rich valuation to the alliterative "customer concentration at cost-conscious Sam's Club."
NASDAQ: TTCF
Elaborating, Kerrisdale notes that ">70% of $TTCF branded sales go to one customer – Sam's Club – and ~75% of *that* is just 4-5 products." Valuation-wise, the short seller warns that Tattooed Chef's 13x branded revenue valuation is "far in excess" of that of other meatless foods makers, and estimates that the stock is worth "less than half its current price.".
Now what
Looking ahead, Kerrisdale notes that "frozen food sales usually bottom in summer and rise into fall/winter," which would ordinarily be good news for sales right now.
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What happened
Shares of food company Tattooed Chef (NASDAQ: TTCF) tanked on Friday after the company reported financial results for the second quarter of 2021. Growth was good, but the market appears to be focusing on some negatives with the company's revised outlook. For this reason, the stock was down 15% as of 12:45 p.m. EDT.
So what
For Q2, Tattooed Chef generated revenue of $50.7 million. That's up 46% year over year. One of the primary drivers during the quarter was the company's increased product distribution. Its products now have over 48,000 points of distribution, which is more than double what the company had at this time last year.
Now what
Tattooed Chef's management doesn't appear to doubt its ambitious 2026 guidance of $1 billion in revenue. However, with a market capitalization already at $1.4 billion, the company will have to make meaningful progress on profitability between now and then for this to be an attractive investment opportunity.
When did Tattoo Chef go public?
Tattooed Chef went public via a special purpose acquisition company ( SPAC) in 2020. SPACs have a unique feature called public warrants. The holder is entitled to redeem each warrant for a share of common stock at a set price, usually $18 per share.
How many tattooed chefs warrants were redeemed?
14, Tattooed Chef announced its redemption date would be Feb. 16. Over 10.7 million warrants had been redeemed voluntarily before that date. More than 9.1 million were then redeemed by Tattooed Chef on Feb. 16, taking total exercised warrants to almost 19.9 million.
