hey guys how's it going with Andy from Magoo investing happy Tuesday today we're going to
be talking about a stock that was requested in the comments section of a previous video
so if there's a stock you guys would like me to cover in a future video be sure to leave your
suggestions in the comment section down below so today we're going to be talking about tattooed
chef stock (TTCF Stock) ticker symbol $TTCF this is a stock that I have not seen talked
about a lot and it has been requested a couple times and it has popped up on my suggestions for
some other youtubers talking about it but I really wanted to dig into it today because
this is a company I think there's a pretty solid competitor or something like it beyond
me a company that I’ve been very bullish on in the past couple videos as being a fantastic company to
invest in for a long term potential and this is a company that has done relatively well since it is
gone public via an SPAC acquisition back in October of 2020. so as always today's video
is going to be broken up into three parts with timestamps in the description if you'd like to
bounce around the first part of the video I’m going to be talking about kind of what the
company is talk about the numbers that have been released via earnings reports or just the future
guidance part two I’m going to be hopping on the computer and talking about where I see as being
a decent opportunity to buy in based off of what I see for the technical analysis
and then part three I’m going to talk about what I think about the long-term potential
of something like a tattooed chef stock (TTCF Stock) compared to a made competitor like beyond
meat stock (BYND Stock) that I’ve been very bullish about in previous videos 2020 has seen
a lot of changes for the ways that companies have gone public in the past companies have gone public
via a traditional IPO process but in 2020 we have seen a major switch from the numbers I could find
there were 219 SPAC acquisitions which raised a total of 73 billion dollars and from the numbers
that I could find this is the first time that a the SPAC acquisitions have raised more money
than the traditional IPO’s it only brought in 65 billion so this has become a very popular way for
companies with high growth potentials to go public in a relatively quick manner compared to the
traditional IPO process so tattoo chef was one of the companies that did this they went public via a
space merger back in October of 2020 and since that point it has been a very exciting stock
usually when you see the SPAC companies they have very volatile moves but compared to a
lot of the other ones that we've seen with some well-known companies like DraftKings
virgin galactic Nikola. tattooed chef stock (TTCF Stock)has been relatively calm in the kind of ways
that it's been moving if you don't know what this company is tattooed chef is a company that creates
plant-based frozen food products I’ve only had one of their products in the past I had
the cauliflower pizza a couple months ago and I gave it like an eight out of ten but the whole
reason that you're trying to invest in this type of sector is that there's explosive growth
potential and this is a place that people aren't looking for complete alternatives to maybe some
meat products but they're looking for products that are potentially better for the environment
and taste relatively similar so as of right now I would give this a thumbs up even though it was
not the best thing I’ve ever had as I mentioned Tattooed Chef Stock (TTCF Stock) went public back
in October and since that point there has been some drama surrounding a major company shorting
the stock charisdale capital which came out and said that they were shorting the stock back
in early November and basically the reason that they were doing it is they thought that some of
the numbers that were released about the company for the guidance going forward we're overly
optimistic and there have been some shady things that companies have done by shorting companies
just look at the GameStop situation but basically the company comes out and shorts the shares
releases some negative things about the company and in theory the stock price will go down
it got to the point where the short interest for the company was up to 41% which is extremely high
but since that point the numbers I could find from the middle of February it's down to 8.7%
and this comes after the company has doubled down on some of the numbers that they released
when the company originally went public and the stock price has remained relatively high we've
not seen the major short squeeze but we have seen the stock stay relatively high let's talk about
the numbers because this was the main reason why the company was shorted in the first place
the first nine months of 2020 saw an 87% growth in year-over-year revenue this is an incredible
number when I look for well-established companies I want to see double-digit year-over-year revenue
growth but since this is a relatively new company it kind of makes sense that they would have
explosive growth within the first couple years of being a major company
and that growth has come after spending zero dollars on marketing overall so this is a number
that seems a little strange I don't know why they would spend zero dollars in marketing but
the company has come out and said they are going to be spending on marketing in 2021
so this should see future growth for the company they've grown their revenue to compound annual
growth rate of 68% which is incredibly high as I mentioned relatively new companies so it makes
sense to have that high of a number but 68% for a company that's been around for a couple years
is extremely impressive and this graphic shows how quickly they've been releasing products since 2017
and it makes sense based off of their revenue growth that they would be releasing a lot of
new products but just to see down a graphic it's pretty impressive to see all the products that
they're putting out and this graphic shows how many locations of their products are being sold
and they slide 155% increase in the location sold from 2019 going to 2020 and based off the numbers
and their goals for 2021 of reaching 65,000 locations that would be almost a 3x increase
in the number of locations sold so based off the numbers there is a lot of growth potential for
the company and the contracts that they have in the locations that they're being sold are major
places like Costco Stock (COST Stock) Walmart stock (WMT Stock) target stock (TGT Stock) so
these are major companies that have a lot of reach around the country and there are
places that a lot of people go to shop so the growth potential seems very possible for them
and the graphic that really caught my eye is that they're expecting to not only 5x their revenue
in the next couple years but they're expecting increase their gross margins up to above 35
percent so anytime you see a company that's increasing their revenue you want to see if it's
impacting the amount of money that they can bring in so based off of the numbers that they've been
releasing it seems like they expect to be able to increase their revenue significantly and also be
able to make more money and be more efficient at the turning revenue into actual income so all of
the boxes that I look at for the growth potential of a company I’ve all been checked so and then
let's talk about the overall industry because this is an industry that I’ve mentioned with beyond
meat stock (BYND Stock) that has a lot of growth potential and as of right now the plant-based
frozen food market has a market of around five billion dollars and the numbers that I could find
is that's expected to reach 74 billion dollars by 2027 which would result in a compound annual
growth rate of around 12 percent so this is a relatively new industry and this is a company that
has gotten relatively early you have companies like beyond meat stock (BYND Stock) and impossible
but there's not that much of a competition at this point it's going to explode and since they've been
able to get in relatively early there seems to be a lot of growth potential for the company so let's
hop on over the charts and I’ll talk about what I see as a potential entry for this company because
as I mentioned within SPAC there is a lot of volatility so the company has been moving a
lot since it's gone public in October but I think there are some interesting spots that you could
consider to buy in for my portfolio and I wanted to talk about what I see there okay so here we are
looking at the charts as you can see things have been very interesting for the past year so this is
when the company first starts going public back in the fall of 2020. so you get this boost up as the
announcement's made pushes up falls here are three kind of zones that I’m looking at going in
to 2021 as being potential entries I have this as the upside potential going up to $26 maybe $27
but the area that I’m looking to enter potentially is around the $18 and 90 cent mark if we get to
the earns report next week and things go poorly if it stays above this level I think that could be a
fantastic entry point also the very bottom that I’m looking at is around the $15 mark
some of the articles that I’ve been seeing online talking about the price targets for
this company or the fair value is down around $15 so I think a potential entry could be around
the 1860 or down to 15 if it falls out low but based off the numbers that I’ve been seeing
and the way that it's respected the 200-day moving average which is this yellow line over here
so far it seems very bullish we had some sell-offs recently but it seems to have bounced nicely out
of this zone so there was a potential that if you wait for the perfect entry you're going
to miss out on some short-term gains so as of right now I’m going to be waiting to see what
happens with the earnings report because if it can stay above $19 I think it's a fantastic idea
a very maybe a potential short term play or depending on how bullish I am in the long term
and especially from the numbers that come out I think this could be a fantastic entry around 19
so let's talk about what I think about tattooed chef stock (TTCF Stock) because the numbers that
have been released have been incredibly impressive when I look for investing in a company for the
long term I’m looking for growth opportunities and I’m looking to see what they've done in the past
and so far tattooed chef checks all those boxes they've seen incredible growth in the past couple
years they're in an industry that's relatively new and is expected to grow at a company annual growth
rate of 12 percent through 2027 and all of the numbers that they've released have been incredibly
impressive looking forward the fact that they expect to increase their revenue at a compound
annual growth rate of 68% is nuts I don't think I’ve seen a number that high before as of right
now I’m not sure if I would put it above something like a beyond meat stock (BYND Stock). beyond
meat stock (BYND Stock) has been around for a little bit longer but both of these companies
have fantastic futures when you look ahead but as of right now beyond meat stock (BYND Stock) is a
company that I think I’ve just known about longer one of the problems that I see with
tattooed chef stock (TTCF Stock) is I’m having a really tough time finding valid information
and discussion about the company overall I want to be able to look online and find information
about you know the earnings reports and some of the numbers but I also want to see other
people discussing the long-term potentials of the company because I think it's always important to
look to see what other people are saying about the company and when I do some research when I
google the ticker not that much information comes out but I’m going to be very excited to see what
happens with the earnings report next Wednesday on march 10th because that'll tell us a lot about
the long-term potential of the company to see if they kind of cut back on some of their guidance
anytime you see a company cut guidance it usually results in a massive hit to the company
and if that happens we'll have to see how bad it is but I think that could be a fantastic buying
opportunity because I always like buying after stocks fall as a result of an earnings report
because in my mind people are looking too much at what's happening now and not looking enough to the
future so march 10th is going to be an interesting date to watch some of the valuations that I found
put the fair price of the company at around 15 but when I look around the overall stock market
the evaluations looking at specifically price for earnings I don't think that's a good way to look
and value a company for the long term especially for a relatively new company and a an expanding
market so as of right now I don't exactly know where I’d say the one year potential for this
company is but looking at something like a beyond me I think they're going to be on level playing
fields for the next year or so let me know if you guys have a preference between something like a
beyond meat Stock (BYND Stock) ticker symbol $BYND compared to something like a tattooed chef stock
(TTCF Stock) and let me know what you thought about my analysis overall let me know if there's
a stock you guys would like me to talk about in a future video and I will see you next time