Beauty products companies often command premium valuations. LOreal (LRLCF) and Estee Lauder Companies, Inc. (EL) trades for more than 55 times earnings, while e.l.f. Beauty (ELF) sells for 90 times earnings. ELF price to sales 8.1 EL price to sales 8.05 LRCLF price to sales 7.4 COTY price to sales 1.6
Therein lies the opportunity. Price discovery will happen ! CONCLUSION: BUY COTY ITS CHEAP (especially in this market)
C
I have all their products great formula
C
a good company for acquisition
D
It was featured this weekend on a popular Youtube channel as a top buy. said channel has 300k subscribers of mostly amature investors who buy whatever this guy talks about...could be a factor given the tiny market cap
h
how many thumbs up for $11
A
BUY BUY BUY HERE. IT WILL GO BACK UP TO 11 TODAY
B
If you listen to the call you can tell this is an overreaction on guidance. The new CFO is clearly more cautious and I like that. After taking out their one-time expenses I would imagine we would see the 3% growth continue to trend this year. As a millennial/gen-z brand this eventually looks like a good acquisition target.
d
ELF actually pays quite a bit in federal taxes and should get a pretty good boost in earnings from the lower rate. Don't know if the conference call shed any light on the exact increase but it could be in the 40% range.
R
The big guys will start circling if they haven't already.
P
Jeremy nailed this one in the short-term.
M
So... Buying opportunity? Going into brick and mortar definitely not a good idea. Up from here (after drop tomorrow)?
M
Also them closing the stores is great news long term. Stores were a waste of time. Focus on digital sales and resellers. Actually a good move which will play out well...
P
Almost doubled my money
R
e.l.f. is a disrupter in a business with conventions that feather the nest of many special interest groups, such as celebrity endorsers, and sets the prices of its products too high. Therefore, e.l.f.'s pricing undermines business of established companies in this space. Obviously, this makes the company a target for the companies being disrupted. The Cramer interview of the CEO was telling because Cramer was able to state, in a few short sentences, that the growth story still remains and it is getting shelf space in the major chains. This will be the dominant company in this space in time. It just might take a year or two more time than expected.
j
Is the CEO still looking long term? $17 buyout was not enough?
L
Cramer called out that ELF is a great company. Real stock price growth anticipated.
t
To the moon
d
A little bird indicated that there could be blowout earnings this quarter. I really think the empty display shelves are more the result of heavy demand versus poor merchandising.
R
Nice article in Barron's looking for a move up in this stock. Let's see a double from here.
ELF price to sales 8.1
EL price to sales 8.05
LRCLF price to sales 7.4
COTY price to sales 1.6
Therein lies the opportunity. Price discovery will happen !
CONCLUSION: BUY COTY ITS CHEAP (especially in this market)
Real stock price growth anticipated.