CA - Massimo Group: A Profitable Micro IPO That's A Lottery Ticket With Odds In Your Favor

2024-04-03 09:25:00 ET

Summary

• Massimo Group is a profitable micro-IPO listing on NASDAQ with accelerated revenue growth and profitability.
• The company manufactures power sports vehicles and boats, and its CEO owns 34 million of the 41.3 million outstanding shares.
• Outstanding financial performance in Q3 and Q4 has likely been overlooked, leading to an opportunity for stealth buyers. EPS was $0.10 each in Q3 and Q4.
• I expect at least $130 million in revenue and $0.40 in EPS in 2024 based on traction seen in the final half of 2023. I think $3.00 is a strong floor price, and $10.00 is a reasonable near term price target.
• As 40 million shares have a six month hold period, there are only 1.3 million shares in the float with no chance of dilution below the $4.50 IPO price, making MAMO an excellent trading vehicle with high volatility for speculators.

There have been many new micro-IPO listings on the NASDAQ over the last few years. The vast majority of them end up being money-losers, potentially after a quick pump. When I first saw Massimo Group ( MAMO ) trade and realized that its IPO was for 1.3 million shares at $4.50 , my expectations were not high. I was pleasantly surprised. This may be the best quality IPO of this size that I have seen. Not only is the company profitable, its revenue growth and profitability have accelerated in the last two quarters. I took the opportunity to buy some shares at just over $3.00 as someone clearly wanted out below the IPO price....

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