I stumbled across this glorious stock which is delivering exponential sales massive growth (whilst remaining profitably) and poised for multi-bag returns. Currently flying under the radar as it was only listed late last year.
FYI – I am long this stock and this is my opinion only. Do your own research on this stock (or any damn stock) before you pull the trigger and BUY. This is my interpretation of CTT only.
In a more general sense this stock reminds me of PBH.ASX maybe 18months ago when it had freshly listed and was still in the aggressive growth stage. I see a similar price story unfolding with CTT.ASX. Everything is in place.
What is it?
- Cettire.com
- Pure-play online marketplace of luxury goods. 90% of sales from outside Australia. 160,000 items from 1,300 luxury brands. Think Burberry, Saint Laurent, Gucci, Prada etc.
- Listed late last year and flying under the radar. No broker reports on this one yet. Poised to spike when the fundies inevitability jump in. The sales growth is too damn good to ignore (more on that below...)
Why should I consider holding this stock?
- Does NOT hold any inventory. Cettire’s business model is enabled by a proprietary technology platform to manage and largely automate product and inventory management, pricing strategies, customer order fulfillment and global logistics. Cettire’s scalable proprietary technology stack requires minimal labor intervention for day-to-day operations. The platform has been designed to acquire large volumes of customers, process and fulfill large order volumes and integrate, maintain and manipulate large data sets of products from suppliers with a very high degree of automation.
- And it works great - for the 12 months to 31 October 2020, the Cettire platform originated and fulfilled 66,232 orders globally with ONE full-time staff member dedicated to logistics!
- TLDR: Think ‘the uber eats of luxury products". How it works...see image:
Online luxury sales is a market that is characterized by low (but growing) online adoption, high fragmentation of existing players, and historically highly controlled distribution channels by the brands themselves. CTT amalgamates product offerings from a global network of suppliers offering a one-stop-shop for rich consumers wanting to buy luxury. This gives suppliers the control they desire but reduces working capital requirements and risk for CTT. Win-Win.
I hear you scream “bUt wHaT aBoUt AmAzOn??!”….well, Amazon dominates mass-market online retailing. We know this. But the one sector they cannot crack is the luxury space. Luxury brands aren’t merely selling clothing...they are selling heritage, rarity, and status. And this is all undone on a platform littered with fakes and having your brand’s $2300 handbag listed next to a disheveled, drop shipped Alibaba garment.
There are many luxury brands that will not sell on Amazon. The CFO of LVMH, which owns Celine, Dior, Givenchy, Louis Vuitton and several other luxury labels, has said:
Nike won’t deal with them either https://www.cnbc.com/2019/11/13/nike-wont-sell-directly-to-amazon-anymore.html citing the issue of fakes. However, these brands are sold on Cettire.
Final notes
This stock has basically no coverage by brokers and will shoot up as others learn about it. Scalable, tech-driven ecom play with little competition that’ll benefit from the growing inequality around the world. I’m all in.
(20min delay)