I JUST SPENT 2,000 on this STOCK

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Well howdy there folks and welcome into today’s video i hope you guys are doing great out there as always in this video i’m gonna reveal what stock i just put 22 000 into this is a two dollar stock uh the smallest market cap company i personally own and um the stock has just kind of been floundered and hasn’t really been doing much but meanwhile i’ve actually seen

Really good progress with the actual underlying business model recently and i’m pretty excited about it so i’m going to share that stock with you guys exactly how many shares i bought and why i’m buying that stock i’m actually going to take you into revenue models for this stock here today and what i think they can be doing here in the over the next few years as

Far as revenue goes and we’ll talk a little bit about price to sales ratio versus that market cap right now so hope you guys enjoyed this video as always all i ask in return is that you smash that like button that is literally yeah if you haven’t gotten a chance yet to check out the hungry bowl that is on the ios store and the android store that is a way to track

Your stocks and kryptos as well as read our daily newsletter inside there as well as listen to conference calls and do a little bit of research as far as stocks go in general so i hope you guys enjoyed that that is the hungry bowl already guys what stock is this up here well it is the very good food company i haven’t talked about this one in a long long time picker

Symbol on this one is v-r-y-y-f okay yeah i bought a lot of shares here today well over uh 10 000 shares in total 22 000 plus dollars of the very good food company here today now i told you guys i did already own this stock i just haven’t bought in quite a while and uh yeah i have owned this for a bit and i haven’t bought any shares for quite a while but now i’m up

To fifty thousand four hundred and forty four shares of the very good food company average cost and this one’s a dollar sixty-two um up a pretty decent amount from the first shares we bought up thirty 35 000 so far from those ones okay but yeah i mean there’s been some changes in the business recently that got me really really excited we’re gonna get into that right

Now and uh also gonna share some of my numbers with you guys my revenue projections okay so first thing is literally you know i i understand if somebody doesn’t know much about like consumer package products and whatnot they might not think this is a big deal but this is a huge deal the company i ordered from them last year late last year their their packaging was

Awful i mean just awful i mean it was like i ordered a bunch of different stuff including some hot dogs and these things were so hard to open they were like individually wrapped yet uh like it used scissors and it was it was a nightmare okay i nearly cut my finger off in the process okay it was a nightmare for consumer packages i was like the current packaging the

Company had at that time like there was no way there was no way that they were going to get on any type of real store shelves with that current packaging they had but what i have seen recently is this company has gotten their branding and packaging on point very recently and like i said this might not seem like a big huge deal for folks that might not know much

About this industry but if you want to get in a kroger if you want to get in albertsons if you want to get in walmart target whole foods these other stores in any sort of major way you got to have your packaging and your branding right if those things aren’t right you stand no dang chance in conventional retail you can’t just always count on people uh ordering you

Know through e-commerce because they they want your product that bad if you want to get in the big retailers you gotta have your packaging right and they have done that now and i’m super super impressed with their current packaging it looks great the branding looks great i can see if that was actually in a store like uh you know imagine walking in whole foods you

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See something like this like i can see that actually selling okay so which is the whole game for very good food because this is a super small company that hardly anybody knows about right and so it for them it’s all about getting somebody to actually try your product and actually go and say hey this looks pretty interesting let me get some breakfast sausages let

Me get a package of the burgers or bratwurst or whatever okay so this uh i saw this and i was like this is a major major deal by the way look at how much thing protein these things have i mean my goodness this got more than the real deal holyfield look at that 19 grams of protein in one patty my goodness you gotta be flipping my flapjacks that’s a flipping good

Burger there okay alrighty guys the stock has been doing a whole lot of nothing it’s just been kind of a vicious downtrend recently and there wasn’t anything to be insanely excited about the stock got probably way over pushed right and um you know the hype was building and that’s right when all the hype was building around pretty much anything that was super

High growth and this is probably my second highest growth company i personally hold and we remember back in january february my gosh okay it didn’t matter almost what it was if it was a high growth stock they were pushing to the moon right anything that had any sort of excitement around it was pushed into the moon and then they’ve all come back to reality right

Including the very good food company and now i’m looking at this company and it’s been trading recently at like no market cap between 200 mil in 250 mil 210 mil recently and i’m like okay this looks like a very dang good deal now based upon the type of numbers i have this company doing over time the company also just recently began production at the california

Facility okay patterson facility to initially produce the very good butcher’s taco stuffer product followed by unique skus stuffed beast and plant-based ribs which that product i haven’t tried yet but i actually heard some good things about that okay the very good food company a leading plant-based food technology companies today announced that it will begin food

Production at its patterson facility located in paterson california starting in september okay which is just uh around the corner we’re less than a week away now from september okay so this is absolutely big you know the united states is where this company’s real big opportunity if this is going to build into let’s say a billion dollar company over the coming years

It’s going to be because the united states okay now let me get into some revenue projections all right now i apologize for the the writing not being legible i was just jotting this stuff down on my ipad last night okay before i went to sleep so what i have here is a decent execution model and i apparently can’t even spell right at night time okay this is a decent

Execution model i have for the very good food company all right now in terms of very good food company i can’t even you know this is such a young company i can’t talk about this on a p e ratio we can’t talk about p e ratios for the stock right now it’s way too early days for this company this is a price to sales ratio story okay now for reference beyond meat trades

At about a 16 price of sales ratio where i saw that recently okay about a 16 for beyond meat this is just for reference obviously beyond meets the big dog in this space a company like very good food company is going to try to compete with uh beyond me over time right and beyond me trades about 16. much more mature company than something like very good food company

So this is a decent execution model the company’s already done 5.4 mil halfway through the year in terms of revenue so to push six point let’s say six mil in this back half of the year is not an issue at all in my opinion okay so if they just decently execute they should do 12 million dollars of revenue which would be uh over 200 percent growth year over year in

Revenue that would put the company on 18 price to sales ratio based upon 2021 numbers all right now let’s say we cut the the growth in half right from whatever they’re going to grow 240 or whatever this year down to 120 growth next year which i think is definitely doable i think i’m actually being really really conservative with that number and most folks that

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Are shareholders this would probably feel like that’s pretty conservative number coming off the type of years they’ve been putting up 120 percent revenue growth would put them at 26.4 mill revenue 2022 that would be essentially an 8.3 price to sales ratio based upon 2022 numbers okay now let’s say we cut that growth in half again pretty aggressive uh you know in

Terms of cutting it in half again so let’s say they do 60 revenue growth in 2023 that would mean the company does a 42.2 mill in revenue in 2023 that would put it at a 5.2 price to sales ratio based upon uh you know basically uh the 2023 numbers we’re at a 3.5 price to sales ratio for 2024 this would be knocking that growth all the way down to 45 percent here for

2024 that would mean they do 61.2 mil and then we knock it all the way down to 30 growth in 2025 that would mean they do 80 million dollars of revenue in 2025 if they did 30 growth at a 2.75 price to sales ratio based upon current market cap versus the revenues they would be doing in 2025. now obviously if we’re looking at this model um you know we’re thinking

About the stock price i mean clearly the stock should be able to command a much above a 2.75 which is where you can see if this is just decent execution they should do 80 ml of revenue okay 80 ml of revenue the stock price i mean the stock should be able to command a 10 price to sales ratio roughly then in my opinion based upon the type of growth they would still

Have in the coming years and so obviously you know this company would be at let’s say a 600 to 900 million dollar mark cap something in there they could be commanding in 2025 versus you know a little over 200 mil today so this is why you can see why i’m not just excited about the company fundamentals but the actual valuation currently on the stock versus where i

Think this valuation is going over the next let’s say four or five years okay now that’s decent execution model let’s get into an execution model where they actually do it on a high level okay so this is what i call the great execution model that i put together last night okay once again around 220 million market cap roughly okay now if they execute on a great

Level in the back half of this year they should be able to do 15 mil total for revenue they’ve already done 5.4 mill right uh you know you got thanksgiving coming you obviously have the holidays you know very good food company put out some really impressive numbers last year in the back half of the year let’s say they do that again okay so they grew 300 plus last

Year they’ve been growing 200 plus this year let’s say they really turn it on here in the back half of the year that mean they do about 300 plus growth back-to-back years okay they would need to execute on a phenomenally high level in the back half of this year do that they would put the company at a 14.6 price to sales ratio based upon the 2021 numbers now 2022

Okay 2022 160 percent growth i have them doing if they’re going to execute on a very high level 160 percent which if they grew back to back years 300 plus you know even at 160 you’re still talking about a big tick down there okay in growth rates right but i would say college still great execution they do 160 revenue growth that’s 39 million dollars of revenue

In 2022. that puts them at a 5.6 price to sales ratio based upon 2022 numbers okay a 5.6 now let’s say we cut that growth in half going into 2023 all the way down to 80 percent which coming from back to back 300 percent years let’s say then 160 to cut it in half again a very aggressive but i would still call it great execution eighty percent 2023 that puts them

At 70 million dollars that’s a 3.1 current price to sales ratio based upon 2023 numbers versus where this market cap’s at now obviously the company would need to come in a massively higher price to sales ratio than 3.1 so we’d likely see the stock price rise in a significant manner right let’s say the company does 60 percent revenue growth in 2024 that would put

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The company at 112 mil of revenue now you’re talking about nine figures of revenue you’re you’re a big player now you’re and i don’t even want to call you a big player you’re a big player in the plant-based space at nine figures okay and uh you’re something to be reckoned with this is when definitely a lot of companies right around here is when a lot of companies

Would think about trying to acquire them or very good food companies say hey nah we’re good we’re just going to keep beasting this out keep putting up some big numbers and keep doing our thing okay but obviously a 1.9 would be way too cheap then let’s say we knocked the growth down to 50 percent for 2025 that would put the company at 168 million dollars in revenue

In 2025 which will put the company at basically 1.3 price of sales ratio based upon what we’re paying now versus where the revenue should be in 2025 if they were to execute great okay so the moral of this story is this is a price to sales ratio story this is not a gross margin or a story in over the next couple years this is not a net income story over the next

Couple years this is a revenue story a hundred percent okay and if we’re looking at where these revenues are trending and where the market caps at you can see that over the next several years there’s plenty of room for the upside for the stock price over the next few years because of the potential revenue growth here now is it possible that the very good food

Company just goes from growing 300 200 percent whatever to also 10 uh yeah all things are possible in the stock market but it’s extremely unlikely that the company just uh you know goes from insane growth just to nothing overnight uh the way i see them kind of branding these products the packaging the the retail distribution i can see them getting into this year

Has kind of been the year where they’re putting everything in place getting facilities up and running uh getting in with uh you know distribution companies that will get them into more of these retailers this is a year they’ve been putting everything in place to hopefully have a nice you know big major ramp up in business over the next few years and so i look at

This one and it seems like a pretty darn exciting stock longer term you know it will become more of a net income story longer term and it’ll be more about the margins but in the short term no no one that’s going to get in the stock cares anything about margins or net income in the short term this is a price to sales ratio story this is a revenue growth story over

The next several years and seeing where this brand can go okay and so when i look at a 200 something million dollar market cap i’m willing to take that risk the risk of all of a sudden they go from crazy growth to they can’t grow anymore and something like that i think that’s very unrealistic i think that’s extremely not probable and so i’m gonna go ahead and take

My my chances and put my chips on the table and uh we’ll see what kind of happens here guys so hope you enjoyed this video as always let me know if very good food company is a stock you’re interested at all in or you own it all i would love to hear from you guys in that comment section as always if you’re looking to download literally every single thing i know

About running stock projections as far as picking stocks making money from stocks running portfolios things like that check out the main pin comment down there that’ll be to apply for the private stock group and our private discord chat as well and uh yeah without uh anything else uh yeah i hope you guys are doing great out there much love as always and uh have a great day

Transcribed from video
I JUST SPENT $22,000 on this $2 STOCK By Financial Education

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