Before I begin let me first offer my condolences to the family of Ms. Coester, a Purple facility worker who tragically died in mid May.
Are TA akin to reading and believing in horoscopes? In my opinion yes, so that is why I don't care for them and nor will I include any chart related info in this post.
What is Purple and what do they make? They make mattresses you can comfortably lay down and make long passionate love with your hand on. According to the CEO, Joe Megibow, the tech molds and makes it so it responds to your movements and adapts so you always feel comfortable; whether it is masturbating whilst in a spread eagle position or when sitting on the edge and watching your wifes boyfriend satisfy her. (The last part was not said by the CEO of Purple, Joe Megibow).
Where is the well researched dd? I came across the company after reading two dd's that caught my eye. The first by the mattress king himself u/dhsmatt2 (go through his account to read the DD) and the second this https://www.reddit.com/r/wallstreetbets/comments/o6cggf/prpl_dd_a_catalyst_awakens_an_ancient_meme/?sort=new . If you are looking to invest in this company it is highly recommended you read these as well as doing your own research.
What else do you have to offer, I've already read these you bozo? My conviction leads me to believe PRPL is coiled and ready to explode. Here is why:
- The analysts love it, one in particular I respect is Brian Nagel. Days before Nike shattered earnings and people were able to cash out 10 and 20 baggers, Brian issued a $150 buy rating (As of me typing this it sits at $160). Brian days after the June 28th drop (caused by the guidance revision(caused by the facility death)) issued a buy rating for PRPL with a $45 target.
What a trustworthy smile. Bless him.
- Brian was not the only analyst who still believed PRPL was undervalued. Here are others:
For transparency Brian works for Oppenheimer
- Another reason I have conviction in PRPL is who owns it, how much they own it and at what price they own it. Over 91% of the shares and over 92% of the float are owned by institutions. Which tells me people who are paid to do research have come to the conclusion that this is a stock you want in your portfolio.
- According to the 10K form the total free float is about 66 million, 60 million of which are owned by institutions (many if not most with a $32 cost basis). That means right now based on the PRPL 10K and the institutional 13F filings there are only 6 million shares out there; I should add that the 13F don't show what has happened in the last month and a half or so.
- I believe to the best of my knowledge (NOT A FINANCIAL ADVISOR) that the low volume in the last several weeks support the 6 million shares statement.
- As I mentioned above a worker tragically lost her life and if you are keen on value investing and/or investing in companies that take steps to address employee safety then I believe PRPL is the company for you. After the accident OSHA came and cleared the facility and what did PRPL do? They did not immediately start up production again (Even though according to the CEO everything they produce is sold), they instead took even more time to ensure this tragedy does not occur again.https://kutv.com/news/local/4-workplace-safety-issues-reported-this-year-at-purple-mattress-facility-where-woman-died You might say but this will negatively effect earnings in August, and you would be right. But a wise person can make another argument instead, and that would be that this means future accidents are mitigated and if the aforementioned statement by the CEO is true then we are going to see a well oiled machine from here on out.
- If you listened to the June 28th investors conference then you would also recall how Megibow played coy when an investor asked if their are 3rd parties looking to partner with PRPL. Joe smirked but didn't directly answer. Any body language expert will tell you that his exchange with the investor was a sign of a person hiding something they really want to let out. This is all conjecture of course but it helps with my conviction.
- For the following statement I have no pictures. In my experience watching PRPL I have noticed that anytime volume increases from the average the price starts to move up; this I've seen occur several times. And this is why I say PRPL is coiled, just waiting to bust.
- If what I believe is true then I think with volume PRPL has the ability to skyrocket to 35-40 even 45+.
- The options are dirt cheap, super duper cheap, but if I was a responsible person I would not buy em. If I were a responsible person I would buy shares and wait a month or two. But I am not a responsible person and I also have conviction. That is why I have bought 55 8/20 40 dollar options with an average price of $44 (currently trading at $13 lol)
If you have conviction then why don't you average down? Well I might not be into TA (astrology) or even numerology but there's something I like about seeing numbers that just seem right; 55 for 44.
TLDR: I have conviction baby. Low float, even lower free float. Low market cap (1.8 billion). Cheap options. Analysts have $30+ buy rating. With volume equals rockets. And as always, don't just blindly invest. DO YOUR OWN RESEARCH AS WELL and remember no matter what you do in life DO IT WITH CONVICTION!
EDIT: Forgot to add the ownership picture, I've added it now. You can see the $32 average majority of the shareholders are sitting on.