Dogness: Beware Of This Dog - Sell

Summary

  • In recent months, speculative investors and traders have been chasing stocks of small, Asia-based companies with a limited public float.
  • However, many of these highflyers have crashed in recent weeks with shares sometimes losing 90% in a single trading session.
  • At least in my opinion, Chinese pet accessories supplier Dogness could be the next shoe to drop.
  • At Friday's closing price, the small, money-losing company was valued at more than 30x FY2024 revenues as compared to 1.25x for highly profitable U.S. e-commerce leader Chewy.
  • The downside in the shares could be north of 80%. Consequently, I am initiating Dogness' shares with a "Sell" rating and a price target of $6 which is still based on rather generous assumptions.
  • Looking for a helping hand in the market? Members of Value Investor's Edge get exclusive ideas and guidance to navigate any climate. Learn More »
Beware Of Dog

Maytals/E+ via Getty Images

In today's momentum-driven market, traders and speculative investors appear to have discovered a new way to generate substantial short-term gains by chasing Asian companies with a very low number of tradeable shares.

I have highlighted recent micro-IPOs Primega Group Holdings

Massively Outperform in Any Market

Value Investor's Edge provides the world's best energy, shipping, and offshore market research. Even during turbulent market conditions, our long-only models have outperformed the S&P 500 by more than 30% YTD.

We also offer income-focused coverage geared towards investors who prefer lower-risk firms with steady dividend payouts. Our 8-year track record proves the ability of our analyst team to outperform across all market conditions. Join VIE now to access our latest top picks and model portfolios.

This article was written by

20.2K Followers

I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.

I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.

Despite not being a native speaker, I always try to deliver high quality research to followers and the entire Seeking Alpha community.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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

About DOGZ Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on DOGZ

Related Stocks

SymbolLast Price% Chg
DOGZ
--