Candy Club ($1+ price target): Becoming the largest speciality market confectionary brand in the US, page-6

Happy New Years Eve all.

Nice move up to 14.5c today crossing above the 20DMA. The last few trading days we have seen rising prices on rising volume. As mentioned earlier, a break of 15c will complete the 12c double bottom reversal and suggest 18.5c/ blue sky territory will be tested.



Across Jan-Oct CY2020, CLB achieved total revenue of US$7.6M. I'm estimating at least US$9.1M (it is possible that it will be a fair bit higher if the Xmas seasonal range took off, which I believe it did) for the full 2020 calendar year, which equates to at least $12M AUD. From here, CLB is on track to double in CY2021 (CY2020 B2B revenue was up more than 5x on CY2019).

If we conservatively estimate $25M AUD in CY2021 sales, a 4x multiple leads us to a market cap of $100M AUD and a share price of circa 35 cents. More than a bag from current levels. Historical trade-sale transactions suggest that 8-10x sales is realistic.

It is once CLB crosses the $50M in sales mark that this business starts to become VERY sizeable and at this point, a premium for the PSR multiple is very likely. The long term game for anyone who is willing to wait is in the order of $50M AUD x 8 PSR for a market cap of circa $300M for a share price north of $1. CLB's target is US$50M in run-rate sales within 24 months.

T.E.P.