Your NEXT NKLA Millennial Monster Melt-Up Stock is Here!!!
Dear Subscriber,
Well kids, I THOUGHT it would take a little time for us to get ANOTHER lifechanging Nikola Motors (NKLA) "Millennial Monster Melt-Up Stock" opportunity.
But what I said a week ago held true: "When Wall Street sees a winning formula ( as in raising a "$200 million SPAC and buy a Millennial/GenZ LIfestyle/Eco-Friendly company and then sit back and watch that SPAC/IPO get Robinhood Trader Sponsorship from 20 million new Millennial traders = 100 years of 7% average stock market returns in just 60-90 DAYS!!," it was a dead certainty that we would see dozens of cult worthy IPOs and SPAC reverse mergers to be put together.
But who knew we would get ANOTHER one right after our 7-8X Nikola Motors score of the century?
Well, we have--and brace yourself: this FMCI SPAC merger could be two-to-three times MORE profitable for us than our huge NKLA score over the next 90 days!
Really?
Really.
Let me share the story of the Tattooed Chef/FMCI merger and then show you a few comparable post=IPO/mergers in the Millennial food space and you make your own judgment.
READ CAREFULLY: The term "Millennial Monster Melt-Up Stock" comes from
1) Tilray's 8-day parabolic melt-up run from $20-300
2) Beyond Meat's 20-day parabolic run from $40 to $280 in 5 days
3) Virgin Galatic's 5-day SPCE run from $10-$150 and most recently
4) NKLA's 10-day $13-$92 parabolics in just 60 days
5) And of course the granddaddy of all Millennial Monster Melt-Up stocks TESLA $138 to $900
Now: What does a parabolic Millennial Monster Melt-Up LOOK LIKE?
They look like a parabolic DOUBLE after the SPAC merger is done and the world (that is Millennial Robinhood traders) discovers the new stock and bombard it with market orders!
TLRY from $40-$60-$70-$120 then BOOM $300
VTIQ SPAC Pre-NIkola Merger
Draft Kings DKNG Pre-Post Merger
And the GRANDADDY of ALL the MIllenniall 30-day Monster Melt-Up IPOs Beyond Meat BYND's the plant-based meat substitute!
See an investable pattern?
Presenting our Next Nikola Motors (NKLA) Millennial Monster Melt-Up Stock: $200 million in cash FMCI SPAC merges with the Plant-Based Food & First Pure Play Plant-Based Food Company Tattooed Chef
The short story? SPAC FMCI announced last Friday they are acquiring Tattooed Chef and thus early in Q3 becomes the second pure-play stock in the millennial favorite and beloved plant-based food category behind Beyond Meat.
The Beyond Meat IPO in 2019 is, of course, one of the founding members of what I have come to describe as the “Millennial Monster Melt-Up Stocks” family of core Millennial lifestyle and values targeted stocks that have created thousands of new millionaires with their 10X-20X melt-up runs after their IPOs or reverse merger APOs.
I am very proud that many of those new millionaires are Transformity Research PRO subscribers--so let's make a whole bunch more!
The New 2020 Stock Market Reality: The emergence of the 20+ million NEW Millennial/Gen-Z Day/Swing traders has created the perfect fertile environment for these SPAC IPO melt-ups as our current subscribers know very well.
IN our opinion, The Tattooed Chef is PERFECTLY positioned to join the hallowed millionaire-in-a-month maker Millennial Melt-UP Monster Stocks Hall of Fame:
Tesla/TSLA (EVs and zero-carbon Solar Storage)
Tilray/TLRY (the first integrated US listed cannabis retailer)
Draft Kings (DKNG online sports wagering via SPAC merger)
Virgin Galactic (SPCE space travel via SPAC merger)
Nikola Motors/NKLA (zero carbon emission Trucking as-a-Service)
Look at that 2-4 week millionaire-making melt-up charts again--they tell the Millennial Monster Melt-Up Stocks story as powerfully as and words I know:
Why is the Tattooed Chef (formerly Itella Foods) ANOTHER table-pounding buy like NKLA under $20?
#1 Their product line! Tattooed Chef ("TC") has GREAT tasting plant-based extremely low carbohydrate foods! I have been a TC customer of theirs for years as a very low 20g a day KETO/Paleo/Low Carb diet fanatic. Via very low carbohydrate lifestyle, I dropped 25 lbs of fat, built 6 lbs of muscle (from my 14-mile road cycling rides), and most important I lowered my blood sugar from pre-diabetic 7.1 A1C to a very healthy 5.7.
Mark my words: low carb plant-based food is the ONLY hope for America’s Type-2 diabetes epidemic and is already “prescribed” by pre Type-2 diabetes nutritionists to the 40 MILLION pre-diabetics in the United States alone.
But DUDE—the biggest reason to pound the table and buy FMCI/FMCIU/FMCIW shares is the valuation versus the $8 billion BYND comp! We will create ANOTHER $50-100k-$200k or a $million for our subscribers over another 8-10 weeks (like we did in NKLA starting in late April), because its the valuation math that makes FMCI our "Next NKLA" post-merger and our second “Table Pounding 8-10 Bagger Buy” in just 60 days!
Here is the math.
Tattooed Chef (TC) at $220M in 2021 revenues is already at 50% of Beyond Meats 2020 revenues of $400M
At the merger date/listing, TC will have a $420 million market cap growing 40-50% per year
Consider this: Beyond Meat aka BYND is growing at 40% a year and today sports a market cap value of $9.6 billion!
With Tattooed Chef, we get a much faster 67% CAGR plant-based pure-play stock with 50% of Beyond Foods revenues at 20X LOWER valuation at just 2.2X revenues!!!
Key Point: Consider this fact for a moment: at JUST 1/4 of the current market cap of Beyond Meat . . .
. . . Tattooed Chef is a $2.4B market cap stock or about $92 a share
Got your attention yet?
Action to Take: TABLE POUNDING Buy FMCI UNDER $20/FMCIW ($11.50 warrants) <$6 and FMCIU (a unit of one share and one warrant) <$25 Until it Hurts!
NOTE: For the Transformity Ultra Growth Portfolio, we will take full $10,000 positions in ALL 3 securities just like we did with Nikola Motors.
FYI: In the case of Nikola, we earned a 576% profit on our NKLA shares $13.50 to $85, a similar profit on the NKLAU unit, and a 10X profits so far in the NKLAW warrants ($2.75 to $28) that we own and continue to hold!
Beats working, don't it?
The rest of the TC story begins with the food creator at Tattooed Chef herself Sarah Galetti: “There is still a tremendous opportunity with leading regional retailers & some of the largest grocers,” she said. “We are currently in just 7% of Walmart stores today with our branded products & expect to be in approximately 50% by the end of the year.”
FMCI has collected the basic information on Tattooed Chef on this page. The Tattooed Chef's current business line is aimed at supplying ready to eat plant-based foods. As explained on its website:
“Get plant-powered, without the prep. At Tattooed Chef, we spend the time so you don't have to. Our products are expertly designed and prepared by us to offer convenience for busy lifestyles, without sacrificing on quality, nutritional value or freshness. So there's no need to blend or spend hours in the kitchen. Just open up, thaw or heat, and enjoy.”
Here is the TC pitch deck.
TC foods are "Farm to Table" and comply with certification bodies like BRC Food, Non-GMO Project, USDA Organic, and Gluten-Free Certification
Current TC Offerings
The company currently has about 18 SKUs available for online ordering. The graphic below is a sampling of the offerings. The full list is given here. (Source: company presentation)
They have over 100 additional categories in development both branded and private label (I sent them MANY suggestions including Cauliflower TOTS!).
The company sells a LOT of its products at big-box retailers, like Costco, Sam's Club, and Walmart, etc.
Here's a sample of the points of sale within 20 miles of my Scottsdale home/office.
The Transition to Branded Products
Importantly, as the slide below makes clear, Tattooed Chef supplies products as both branded and private label. However, the branded portion of the business is rapidly expanding and is expected to represent two-thirds of the business by next year.
Indeed, the shift to branded products coincides with the launching of the Tattooed Chef, whose success prompted the company to rename itself.
Product Demand, Acceptance, and Total Addressed Market
According to SPINSscan Natural, the U.S. plant-based food market has grown by more than 28% to $5 billion in the past two years, much higher than the average U.S. retail food dollar sales growth of only 6% during the same period. Because more and more people are concerned about their health and shifting their diets, we expect this trend will continue to grow at double-digit rates in the next five years.
To understand why Tattooed Chef's growth has been so strong, it's helpful to look at the trajectories of individual product introductions. The slide below shows the accelerating sales one would expect from a company that is correctly reading its target market as well as executing well from a sales and marketing standpoint.
(Source: company presentation)
Projected Sales Growth
The chief driver of BYND's valuation has been its sales growth rate. We estimate BYND's future growth rate at 43%.
Obviously, TC’s projections beat Beyond Meat sales growth like a drum:
(Source: company presentation)
Valuation
This valuation depends on the share price of FMCI, which, in the example above, is taken as the SPAC issuance price of $10. With that figure, Tattooed Chef, with a sales growth rate larger than BYND's and yet with meaningful annual revenues, is valued at an EV/S on 2020 revenues of 3.3X.
BYND is estimated to do $469.97M in 2020 sales and currently sports an enterprise value of $8.81B.
Thus, BYND trades at an EV/S on 2020 revenues of 18.7X.
IN comparison to BYND, TC’s valuation at $482 million is almost insanely low.
While Tattooed Chef’s products, including smoothie bowls, cauliflower pizza crust, as well as other vegan and gluten-free options, are already available in major U.S. retailers, they are still missing out on many regional stores, Galletti believes “There is still a tremendous opportunity with leading regional retailers and some of the largest grocers,” she said. “We are currently in 7% of Walmart stores today with our branded products and expect to be in approximately 50% by the end of the year.”
TC also aims to further expand within the frozen aisle, which Galletti notes is a $55 billion industry in the U.S. and $380 billion globally today. Particularly, “we are looking at the $12.6 billion frozen desserts segment in the U.S., which presents a large opportunity,” she said.
“As we are the manufacturer of our products, it allows us to create and innovate quickly, efficiently, and at a higher volume,” Galletti added. “We have over 100 new concepts and recipes in various stages of development that have yet to be announced or released.”
TC's sales have not been negatively affected by COVID-19, and are on track to achieve $148 million this year, and $222 million in 2020, which represents a 67% CAGR between 2018 and 2021, according to Galletti.
In the long term, she said: “We believe Tattooed Chef will achieve revenue and adjusted EBITDA growth above 20% as we continue investing in the brand and expanding our retail footprint, and an adjusted EBITDA margin in the high teens.”
Bottom line: The Millennial Monster Melt-Up lightning is striking twice for Transformity Pro Investors.
We will be running a new subscriber promotion soon featuring the NKLA story and the Tattooed Chef opportunities.
Warning: Based on the last NKLA new subscriber promotion success (1,000+ new subscribers in two weeks) my advice is to get your shares/warrants and share/warrant units NOW and tuck them away until the merger is complete in early Q3 (July or early August).
PS--if you want to trade options on your news TCHF shares (the assumed ticker) or your NKLA shares, you only have a few weeks to join our 5-years All-Access membership at the $495 price.
We made a bloody fortune on trading NKLA options (buying calls/selling puts/selling call options) when they became available. Via options, many of our subscribers earned 30-50X on their money!!!
Click here https://transformityresearch.com/register 1) Click on the link 2) scroll down to the page to the All-Access membership 3) click on the All Access "SELECT" button 4) Fill out registration info 5) SCROLL down to choose payment (ignore "Coupon Code") insert credit card data 6) click payment button "Register Account" Welcome!