This Best Idea long position has been painful – which started with a small (and I mean TINY) timing mis-step around the launch of CENTERFOLD combined with a more impactful Macro Quad4 hitting everything consumer high growth, ecom and crypto consumer, which is a bucket the market rightly puts PLBY in. One of the challenges we think with PLBY is that it’s next to impossible to crystalize the investment pitch in 30-seconds or less, which makes it particularly tough given the lack of Institutional ownership in the name. It’s too complex for people to care about. This company simply has too many initiatives, and is almost falling victim to its own success from an investor communication perspective. We’re going to do a deep dive on all of PLBY’s growth and value-creation initiates in our Black Book, and will also crystalize the underlying investment theme in a clear, concise and easy to digest framework. We still think that at the current share price, Honey Birdette, CENTERFOLD, and the NFT opportunities are being valued at ZERO (if not negative), and that the market is assuming that management flat-out fails to grow this portfolio of brands across consumer categories. The company is likely to report earnings around March 1, and we want to be out with our deck ahead of then because we think that it will be a solid print, with confirmation of our bullish view. We continue to believe that PLBY is one of the most fundamentally mispriced securities in all of Consumer Discretionary. While Quad 4 (in 1H) doesn’t like Consumer Discretionary, the current setup looks to be Quad 1 in 3Q (very bullish), which is precisely when we should see the underlying growth, earning and cash flow metrics of this business come to life. In other words, just as PLBY was cut in half from the peak, then cut in half again, it could and should triple by year end from current levels. Get ready for a massive 2H. We’ll outline the roadmap to getting paid in our Black Book on Feb 16th.
Call Details:
Date/Time: Wednesday, February 16th at 12:30PM Add to Calendar: Click Here
Live Video Link: Will Be Provided Prior To Call
