One of the major concerns while investing in micro-cap companies is the strength of their fundamentals. With a relatively short history and little data to count on, investing in these stocks often tends to be highly speculative. However, an online jeweler and antique reseller SFLMaven (OTC: SFLM) stands out of this generalization. A top-rated seller on eBay, the company’s statistics and reviews are directly accessible to everyone on the e-commerce platform.
Founded in 2003, the company is known for its Thursday Night Auctions. SFLMaven sources its high-end jewelry, watches and other accessories from a network of dealers, inspects their quality, and sells them online with an express 2-day shipping option. In an interview with AlphaStreet, CEO Joseph Ladin pointed out that SFLMaven is not just an idea, unlike many other OTC-listed firms, rather it’s an undervalued company with an 18-year history and high top-line figures.
“Our revenue in the first quarter was right around $3 million, and we are on track to do at least $12 million this year. We are focusing on both profitability and scalability,” he said.
Loyal customer base
Ladin stated that the USP of the firm is its Thursday Night Auction, where inventory is regularly refreshed so that buyers are not constantly looking at the same items. The management claims that 55%-60% of its total customer base is accounted for by repeat buyers.
The CEO said the firm has built credibility for itself over the years – thanks to the almost cent percent feedback rating on eBay – that customers are willing to buy high-ticket items from the store. Last year, the company reportedly sold a diamond for $80,000 to a customer.
Speaking on its markets, Ladin said eBay allows the firm to be a global platform, and approximately 15% of its items are shipped to international locations. “eBay is going to be our main revenue stream. But we are planning on growing into some newer markets with different platforms, and expand our revenue stream in whichever way possible,” he added.
SFLMaven pins its hopes for further growth on the robust CAGR of both jewelry and e-commerce sales. While the global jewelry market is estimated to grow at a compounded annual rate of 3.7% over the next few years, e-commerce is projected to grow at a pace of 14.7%. Given the relatively small size of the firm, SFLMaven offers plenty of upside potential if it manages to deliver on the expansion promise.
The company had a market cap of $8.4 million and a float size of 75.5 million as of April 16, 2021.
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