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Jul 16, 2021
[5 min Read]
Hope all is well with you on this wild trading day.
I came across a stock I would like to share called BODY (known as Beach Body). They just completed a 3 way merger between Beach body,Forest Road and MYX fitness about 2 weeks ago.
A little info on this stock. The 3 way merger included Forest Road, MYX fitness which is a cycle bike company and Beach Body that is a connected fitness company who has over 20 years of growth under their belt. Beach body acquired Openfit in December of 2020 (Started by Lebron James and Arnold Schwarzenegger). This acquisition gave Lebron and Arnold a stake in the new BODY company. They are both going to be making their own content in the future for this company. Beach Body company is known for its exercises Insanity and P90X which helped countless people lose weight and change their lives for the better(Sean T is also a super trainer and he has been massive in fitness for as long as i can remember).
The (Forest Road Acquisitions) is phenomenal. Here is a list of a few of the people involved in the deal. You will probably recognize Shaq and MLK the 3rd are apart of this company which I think is huge. IMO anything Shaq joins always seems to make waves. (The ring company and Papa Johns Pizza just to name a few).
The Forest Road Acquisition Corp. team includes three former Disney senior executives — Tom Staggs, director and Chairperson of the Strategic Advisory Committee, Kevin Mayer, strategic advisor, and Salil Mehta, Chief Financial Officer — and is strengthened by the strategic connectivity and deal-making expertise of directors, officers, and strategic advisors like Shaquille O'Neal, Peter Schlessel, Keith Horn, Mark Burg, Sheila Stamps, Teresa Miles Walsh, and Martin Luther King III.
On top of this All-Star cast of people is the short interest. Yesterday I saw that it was over 40%! Today the stock hit its 52 week low due to the shorting that has been happening. This is the current Short interest (around %38.09).
The BODY company is now flush with cash around $420,000,000 coming from the closing of the merger. They are planning to do an advertising campaign in the coming weeks for around $75,000,000. I am not sure of the specifics but if they include Lebron, Arnold, Shaq or the Cycle bikes that should really send this stock in the right direction. Here is some info on the combined company.
As you can see this company is already profitable. The CEO called it the bargained price Peleton. This is the most cash they have had on their balance sheets and they were up to $880,000,000 without this added capital. The brand awareness should sky rocket after they start broadcasting the new commercials.
The biggest catalyst for the stock besides the short interest is the addiction of BODI live interactive. (Beta testing in August and rollout in September) Most likely they are trying to drive this thing down to get in cheap for this huge event) They are using the technology seen in the NBA and WWE to stream users live into a class setting and have them on a TV where the instructor can interact with them and help them with their form and encourage them. This should be a big deal as it bring interaction that has never been seen besides what the cycling classes are doing.
This is revolutionary for online fitness. It will bring the gym straight into your home and is a very exciting Segway into the future of fitness. I know most people who have tried to get in shape have bought gym memberships that they barely use at some point in their life and they spend money every month on nothing. Beach Body has 2.6 million paid subscribers at this time. It should continue to grow.
Needless to say the companies that have been invested in lately for short squeezes haven't been profitable or sustainable. This one seems to fit the bill of Short Squeeze candidate and a good investment for the future! When I first came across Peleton it was at $17.50. The 52 week high within a year of this low was a high of $171.09. They don't nearly have the library of workouts that BODY has. They don't have the star power of the people I mentioned above. Their exposure started with a controversial commercial that got people talking about the company. This went almost 10x without a short squeeze and any real spokesperson for the stock. Needless to say it seems that BODY could moon! (Peleton commercial below)
I apologize for the long DD but this company is so low right now I feel I have to share everything that I have learned about them. This isn't financial advice just someone trying to be on the cutting edge of a new public company I think has some great promise!
There is a ton of room to grow in all segments of this business. I believe the cycle bike is the best Peleton alternative and it is much cheaper compared to the Peleton bike. Peleton recently had issues with their treadmill sucking kids, pets and other objects underneath them. This leaves some people that would rather find a nice alternative. The swiveling screen on the bike connects to other fitness classes and you can use that screen to get other workouts in as well as cycling classes.
I am now a shareholder in the company and very excited to see what the future brings! Happy investing and hope you guys learned something from this DD!