uSell: An Unknown ReCommerce Marketplace With An Impressive Growth Story
- uSell is experiencing rapid growth, as revenue in 2013 increased 125% y/y and devices sold through the platform have increased 80% y/y.
- There is ample supply in the marketplace for uSell to capture. Consumers currently have $25B in electronics inventory to sell, with an additional $12B being added through 2014.
- The smartphone reCommerce marketplace is fragmented. uSell is consolidating this market by providing a service with more competitive advantages than its peers. Its valuation could grow to be $130M.
- Management owns nearly 30% of the company, aligning their interests with that of shareholders'. An uplist to the NASDAQ is a significant and imminent near-term catalyst.
- An 85%+ GM coupled with high growth and cut costs will lead to EPS of $0.35-$0.40 in 2015. A 25x P/E results in 100+% upside potential.