Quote:
Originally Posted by AllinPoker
BWMX seems very interesting
no debt, super high growth, capital light business trading at 11x annualized Q3 earnings. 6.5% dividend yield
Market cap is 970M and guidance is 92-103M EBITDA full year 2020.
Year on year revenue growth was 200% in Q3 vs 100% in Q2. With a long history of growing at 30% before that.
Not saying it's not a good investment, especially in this new paradigm where hype stocks that don't really produce anything outperform everything else, but this looks like an MLM for selling cheap home goods. I went to their website, and it looks like you can't actually buy anything there—instead you sign up and your distributor will send you a catalog. Who are these distributors? Get three customers ("associates") together and order $125 worth of products to become a distributor. It seems all distributors and customers (who, as far as I can tell, must order via distributors) receive a 24% discount on what are already surprisingly cheap products.
So something seems pretty fishy about this company. I'd feel like a moron losing money on a Mexican MLM stock. Then again, I'd also feel like a moron losing money on a farce like NKLA, and there was plenty of money to be made there.