SGRP Spar Group - Retail Merchandise Solutions worth 5$

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Spar Group (Founded in 1967)

"Much more than a retail merchandising company". That's how they tell proudly about themselves and they are all over the globe. They offer retail merchandising solutions for businesses across the globe, furniture and equipment assembly and installation for residential and office partners, and new store sets / remodels for retailers in need of driving sales.

What is their primary focus?

  • Retail Solutions
  • Assembly & Installation services
  • New Store Sets & Remodeling
  • Store Closures

SPARView (TM)

    SPARView    Youtube

    • Customizable retail operating system which is a reporting platform and as well as fulfillment report model. Oh boy, fulfillment is where supply chain is hot along with eCommerce.



Their business is round the clock, pandemic or no-pandemic, no wonder why they are making positive revenues.



Fundamentals

8M Float, 21.1M OS

Heavy insider holdings (Robert Brown owns 10%) and they also have a share re-purchase program for 500k shares.




Why I like SGRP?

  • Share re-purchase program
    • https://www.theglobeandmail.com/investing/markets/stocks/SGRP/pressreleases/910216/
  • Excellent Financials
    • Profit generating company
      • YOY Revenue increase (Refer image below)
      • ROE 14% Approximate
    • Excellent debt to asset ratio (82.47M Assets, 50.24M Liabilities)
  • Chart in a breakout pattern
  • Announced recently share repurchase program for 500k shares
  • New CEO from Dollar Tree sounds interesting
  • Customers are Staples, Burlington stores, CVS, Dollar Tree
  • Social sites indicating a new project work coming up potentially with Walmart, Dollar Tree
  • Case study indicating huge potential - https://sparinc.com/case-studies/








  • YoY increase in Revenue. 252M in 2019 and 232,210 so far in 2020 without inclusion of Q4 ER. This year with holiday season Q4, im sure there would have been lot more work by them done and I expect 60M to 80M, which outs them at 292M to 312M which will be another 15% to 23% YoY increase. And 300M revenue for a 21.1M outstanding shares company sitting at 1.90 is still the cheapest.
  • Closed over purple line and also hits new 52 week high recently, this could move like how $KIRK $PRTY $WKHS $UAVS moved
Previous Entry: 1.20 / 1.40$ Price hit so far : 2.00$

New Proposed Entry points: 1.80$ > 1.70 > 1.60$
Price Target: 2$ > 2.40$ > 3.00$ > 3.75$ > 5$+


Daily Chart






Weekly Chart









Disclaimer: All these are my trade opinions only and not trading advice.

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