Entering text into the input field will update the search result below

FitLife: Confusion About Last Quarter Results Created Great Buying Opportunity

Dec. 03, 2021 3:24 PM ETFitLife Brands, Inc. (FTLF)12 Comments
Lares Capital profile picture
Lares Capital


  • FitLife is a nutrition company, growing at 30%, debt-free, and trading at very low multiples.
  • Sell-off after Q3 2021 was most likely the result of the confusion over abnormal comps due to Covid re-opening in Q3 2020.
  • Some investors likely dumped the stock without understanding the proper context of the results or FitLife's lumpy revenue cycle.
Close up of motivated focused strong muscular bearded man doing back and triceps exercise on the machine in the gym.

dusanpetkovic/iStock via Getty Images

If I told you that I know a company which trades at normalized trailing P/E of about 8x, has almost 30% growth rate, debt-free, and has cash representing about 15% of its market cap, would you believe me? Well, I know such a company. It's called FitLife.

This article was written by

Lares Capital profile picture
Lares Capital, a long/short fund that specializes in small caps, option strategies, and low-liquidity equities. The fund invests in both domestic and foreign securities. You can contact us at sa@larescapital.com.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FTLF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (12)

Lares Capital profile picture
The 4-1 stock split has just been announced, starting tomorrow. I had no idea that I would predict just two days before. This is all about NASDAQ up-listing....

@Lares Capital
Great call

The Board of Directors of FitLife Brands, Inc., a Nevada corporation (the “Company”), has approved a forward stock split of the Company’s authorized, issued and outstanding shares of common stock, par value $0.01 per share (the “Common Stock”), at a ratio of 4-for-1 (the “Forward Split”). The Forward Split was effective as of December 2, 2021 (the “Effective Date”), and will begin trading on such basis on December 8, 2021
Great article
Started buying when it was Bond Laboratories

Dayton did a reverse split when he took over, cashing out a lot of shareholders so I’m neutral on shareholder friendliness but very positive on his business abilities

April 2018, he implemented a reverse/forward stock split and thereby cashed out all shareholders holding less than 8,000 shares

Business is growing on internet sales

Dayton/Sudbury fund is connected to Mannatech (mtex) a seller of health products, a merger would make since

2021-01-27 - Sudbury Capital Fund, LP has filed an SC 13G/A form with the Securities and Exchange Commission (SEC) disclosing ownership of 154,327 shares of Mannatech, Inc. (US:MTEX). This represents 7.4 percent ownership of the company. In their previous filing dated 2020-01-27 , Sudbury Capital Fund, LP had reported owning 135,274 shares, indicating an increase of 14.08 percent.
Lares Capital profile picture
@bobblock I doubt MTEX is a good fit. MTEX is more like Herbalife. Also, it would be a merger of equals given their similar market caps. This may destroy shareholder value.

Much better strategy is an accretive roll up of small companies: they have GNC franchise channel, Amazon storefront, and can spread SG&A leading to better net margins. It looks like Nurology was highly accretive. They need more deals like that.
What makes you think they will do a stock split? There has been no hint of that in any filings.

I think that Dayton is a savvy manager, and to me that is the best reason to stay invested in the company. So far he has been reasonably shareholder friendly. I believe that he has an exit plan for his own sizeable stake in the company and hopefully we will all benefit when he activates that exit plan. The downside which you didn't mention is that a single shareholder has a controlling stake in this company which is a risk for minority shareholder interests.
Lares Capital profile picture
@Anshay the stock split will make sense to get to 300 to get listed on Nasdaq. A lot of smaller investors may not have $5k to buy a 100 share block.
@Lares Capital it’s ironic that they closed out a bunch of people who held positions with the reverse stock split several years ago and now are trying to get new holders
Lares Capital profile picture
@Anshay yeah but they did not see 7x appreciation coming. Optically $8 a share looked good, $50 a share not so much…

If you see them do the split, it’s a bullish sign - its all about up-listing.
Nice article from one the original followers of the stock. I think you got us a six
bagger and glad there might be more . Piggy bank keeps growing and we expect more accretive deals for cash , and an uplisting when its time .
No Called Strikes Investing profile picture
Thanks for the article. I'm intrigued enough to take a deeper look.
I bought some recently, so that makes one more shareholder of the 300 needed to be listed.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.