1847 Goedeker Stock: Executing Well Yet Remains Incredibly Cheap

Greystone Capital
893 Followers

Summary

  • Goedeker's is an interesting special situation that I believe has been overlooked and ignored by the market for a number of reasons.
  • 1847 Goedeker is executing incredibly well and should continue to do so moving forward.
  • GOED stock has declined significantly during the past few months even following stellar Q3 earnings results.
  • Base case estimates call for more than double the current share price over the next few years.
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1847 Goedeker Inc. (GOED) (from here out referred to as just Goedeker, Goedekers or GOED) represents one of the more mispriced situations I've come across in some time, especially following the company's Q3 earnings release in November which reflected strong business execution where the company

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Greystone Capital is a long only, equity focused Registered Investment Adviser located in West Chester, PA. The firm utilizes a fundamental research process focused on identifying mispriced small and microcap securities in order to build a concentrated portfolio of high conviction investments. It’s our belief that the best investment results can be achieved by aligning interests. Greystone aims to be different from the majority of investment vehicles and large funds by providing full transparency into what we own and why we own it, and always being invested alongside clients. We strive to create value, not extract it. Greystone’s investment process is centered around patience, good decision making, and daily incremental improvement. Our aim is to compound client’s investment capital at the highest possible rates of return over long periods of time. To do that, client portfolios are managed by taking concentrated positions in small companies that are generally under-followed, misunderstood, and can be too small for large funds or passive investment vehicles to own, creating the potential for mispricings. Viewing stocks as ownership shares in businesses, we seek to own these companies for years, or until the mispricings correct. We believe this approach, executed well over long periods of time, can provide a path to stock market out performance.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GOED, GOED.WS 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.

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