Toughbuilt re-tested the all time lows and seems poised to run higher now.
Falling wedge: We see that TBLT broke out of the falling wedge and has been flatlining or consolidating in the $0.70s area. This is a bullish pattern.
Kilroy Bottom / Inverse Head & Shoulders: Coincidentally or on purpose, the consolidation in this range is also forming a Kilroy was here or inverse H & S formation. This is also a bullish reversal pattern.
The company's overall picture has not worsened. From their annual report, they stated they intend to release new tool lines in the first half of 2021. As it is almost June, the announcement can drop any day now and propel this baby higher. New products will boost growth, revenues, and move the stock. They also filed patents for new products down the line so the growth story can really play out long term.
The annual meeting is also coming up in late June to vote on a R/S and an increase in shares. I think if the stock regains compliance, management will not need to pursue a R/S or dilute shareholders YET.. They have 32 million in cash which can support them through the end of this year. Assuming the new tool lines add significant revenue and the company approaches becoming profitable, this is extremely undervalued at a 58 million market cap. Their yearly revenues are almost $50 million.
I forecast break even at around 80-90 million in revenues per year and that is not too far away.
Risk: Management being able to execute and take the company to profitability.
Reward: At 58 mil market cap this company is not trading at any multiple to sales or any type of multiple right now. If they prove they can turn the company around then we can see a 10 bagger in 1-2 years.
This company needs to step it up and bigger players will notice and probably buy them out. But come on management! EXECUTE!!!
Good luck to all.
Falling wedge: We see that TBLT broke out of the falling wedge and has been flatlining or consolidating in the $0.70s area. This is a bullish pattern.
Kilroy Bottom / Inverse Head & Shoulders: Coincidentally or on purpose, the consolidation in this range is also forming a Kilroy was here or inverse H & S formation. This is also a bullish reversal pattern.
The company's overall picture has not worsened. From their annual report, they stated they intend to release new tool lines in the first half of 2021. As it is almost June, the announcement can drop any day now and propel this baby higher. New products will boost growth, revenues, and move the stock. They also filed patents for new products down the line so the growth story can really play out long term.
The annual meeting is also coming up in late June to vote on a R/S and an increase in shares. I think if the stock regains compliance, management will not need to pursue a R/S or dilute shareholders YET.. They have 32 million in cash which can support them through the end of this year. Assuming the new tool lines add significant revenue and the company approaches becoming profitable, this is extremely undervalued at a 58 million market cap. Their yearly revenues are almost $50 million.
I forecast break even at around 80-90 million in revenues per year and that is not too far away.
Risk: Management being able to execute and take the company to profitability.
Reward: At 58 mil market cap this company is not trading at any multiple to sales or any type of multiple right now. If they prove they can turn the company around then we can see a 10 bagger in 1-2 years.
This company needs to step it up and bigger players will notice and probably buy them out. But come on management! EXECUTE!!!
Good luck to all.
