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Hello!
This is an update of our newest alert, CAPS.
Following our alert this morning, CAPS opened today at 2.32 and so far, rallied as high as 2.84, upside of +22%.
Last week, CAPS rallied from 1.97 to a high of 4.18, experiencing gains of 112% in just 1 day.
Today, that would present gains of over 80% from today's open if it were to reach this level again.
A breakout and close above yesterday's highs could be the beginning of another big rally higher.
CAPS has a RSI of just 37, suggesting the potential for increased upside.
In addition, this morning, the company announced breaking news:
"Capstone Targets $100M Run Rate Increases Q4 Revenue and Executes Strategic Brand Expansion"
Here are the "FY 2024 Corporate and Operational Highlights" from this press release:
"Set Acquisition Strategy for 2025:"
- "Focused on Tuck-In Acquisitions, Sister Companies, and Platform Acquisitions"
- "Deal environment and structures remain favorable"
- "Acquisition multiples of 4-6x EBITDA"
- "20%- 45% of consideration as non-cash"
- "Majority of activity centers around strategic Tuck-In Acquisitions to accelerate Instone's earnings. Multiple sister company opportunities currently under review"
"Q4 Revenue and Unit Volume Growth:"
- "Instone delivered over 8% year-over-year revenue growth in the fourth quarter of 2024."
"Successful Launch of Toro Stone:"
- "Installed 90 displays across 6 new states"
- "Received orders from over 50 customers"
"Operational Efficiencies:"
- "Completed targeted cost reduction initiatives"
- "Achieved improved gross margins"
Here are some of the company's comments from this press release:
"Matt Lipman, CEO of Capstone, said,"
""I'm proud of the team's execution and focus on growth in the second half of the year. As the parent company, our mission is clear: double the size of the business through targeted, strategic acquisitions - and we believe we're well on our way. We remain focused on scaling efficiently.""
"The Company is targeting an operating company revenue run rate by the end of 2025 of $100 million and Adjusted Instone EBITDA of at least $10 million."
"Kevin Grotke, CEO of TotalStone, LLC (dba "Instone"), a wholly owned operating subsidiary of Capstone and its primary business activity, said,"
"I'm incredibly proud of our team's execution and their sharp focus on customer acquisition and top-line growth. Their efforts have laid a strong foundation for continued success, and I'm excited to see the momentum carry into 2025 as we work toward achieving our ambitious goals - particularly the growth of our proprietary brands."
As the company further explains:
- "Capstone continues to position itself as a premier, national platform in the building products space. The Company is expanding its geographic footprint, strengthening its portfolio of proprietary brands, and delivering exceptional value to customers and stakeholders alike."
We are continuing to monitor this opportunity.
Sources: Presentation, PR1, PR2, PR3, PR4, Website, Chart
Happy Trading!
AwesomeStocks
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