Daily Brief Consumer: Mao Geping Cosmetics, Bally’s Corporation, Cal Maine Foods, Sacks Parente Golf, Chefs’ Warehouse, Lands’ End Inc, Target Hospitality Corp, Vera Bradley and more

• Mao Geping Cosmetics is looking to raise around US$300m in its upcoming Hong Kong IPO.
• Mao Geping Cosmetics (MGC) operates in the premium beauty segment. Operating via its two brands, MAOGEPING and Love Keeps, MGC offers a wide range of color cosmetics and skincare products.
• In this note, we look at the company’s past performance.

• Bally’s Corporation is undervalued despite insiders recognizing its potential
• Standard General made a buyout offer of $15/share, prompting Bally’s to form a special committee
• The author predicts that Standard General will increase their bid to take Bally’s private, highlighting it as a compelling investment opportunity.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cal-Maine Foods (CALM) is a promising long-term investment with potential for around 50% upside
• Stock is currently undervalued due to low historical book multiples and high short interest
• Company has a cost advantage over peers and strong earnings potential, especially in the event of an avian flu outbreak

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Sacks Parente Golf (NASDAQ: SPGC) is an innovative, technology driven golf company with a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories.
• The company went public in August 2023 raising $11.6 million in net proceeds.
• The company announced its entry into the golf shaft market in November 2023.

• Highly fragmented distribution market provides growth opportunities and market share gains
• Focus on serving high-end independent restaurants gives competitive advantage
• Commitment to improving efficiencies and achieving higher profit margins positions CHEF for significant upside potential

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are reiterating our Buy rating, projections and $17 price target for Lands’ End after reviewing the June 2024 and June 2023 catalogs.
• We believe, with Lands’ End in the heart of the swim season, the company remains focused on key new items to drive earlier purchases by customer, with new shaping swimwear products, updates to classic items such as the Tugless Tank and Starfish pants, new fabrics (gauze and rayon) and increased emphasis on seasonal winners (linen).
• Further, the expansion into adjacent categories, such as dresses, after-swim looks and cover-ups, further expands the Lands’ End collection and creates a true swim-wear driven vacation lifestyle look.

• This is a quick idea possibly worth a punt from here – a hairball of sorts at this point but asymmetric to the upside.
• One thing that happens in special sits land is that yeah sometimes turd hits the fan – maybe a takeover falls through, a merger breaks etc.there will rampant selling, the stock chart will look like a cliff-off and a bloodbath ensues for a short period of time.
• Different investors operate with different mandates and sometimes for a certain kind, it’s just plain discipline – if you are there for the takeout and the takeout falls through, then the thesis is broken and you exit.

• We are reiterating our Buy rating and $10 price target, leaving our FY25 EPS projection unchanged and raising our FY26 EPS to $0.68 (from $0.65) after Vera Bradley announced lower than Street consensus 1Q results, but reiterated FY25 guidance and provided a compelling overview of the upcoming shifts from the Project Restoration launch in mid-July.
• As we have previously stated, the period before the launch of Project Restoration was going to be lumpy and 1Q results proved our thesis.
• That said, with the company remaining cash-rich, aggressively managing inventories and expenses and with the launch of Project Restoration less than a month away, we believe the investor reaction to 1Q results is, at best, short-sighted and offers a highly compelling entry point for VRA, as the company shifts to a growth mode with a new product assortment, new store look and compelling business model.