New Article on CVSL + Update on “Ridiculous” Valuation
Great article out yesterday (click here to read) by one of our own pointing out how ridiculous it is for CVSL stock to trade in its current range. One thing to note – the “ridiculous” .2x revenue multiple that was calculated in the article uses a pretty conservative approach because it does not include the revenue from recently acquired Kleeneze. If Kleeneze’s revenue from the prior 12 months were included, CVSL’s cash/debt adjusted market cap would have been .1x trailing twelve months revenue. So even with yesterday’s move off the bottom, CVSL remains dirt cheap and arguably still below .2x trailing revenue despite the fact that CVSL is growing much faster than the other companies in the space and despite the fact that it has a much stronger balance sheet than the comparables used, including enough cash to pay off its debt, repurchase the entire public float and still have $1 million in the bank.
Groove investors who have yet to “back up the truck” for the full portion of CVSL shares they want in their portfolio should do so ASAP. The CVSL article was published by Seeking Alpha in the morning after the email newsletters were distributed, so today will be the first day that many are exposed to the CVSL story for the first time. Thus, the article will be much more widely distributed today and other investors may be drawn into the CVSL story just by noticing that it was one of the top 5 gainers on the NYSE Market yesterday. Additionally, today starts the annual Bee convention for CVSL’s largest division (Longaberger) and with the company’s increasing focus on helping its sales reps become “owners” through share purchases may result in several thousand other buyers out there competing for shares. CVSL shares remain dirt cheap and we believe that the time to buy them is as soon as you can.
A big welcome to all of our new friends who are entrepreneurs working with Longaberger and/or attending the Bee today! The Groove is proud to be investing in the iconic Longaberger brand through our ownership of CVSL shares. We hope you have a great visit this week!
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