Good morning!
Liberator Inc. (LUVU) has been making cash by the bucket full, as befits its unique role as a publicly traded manufacturer of “positional furniture.”
LUVU’s line of pillows, platforms and pads retail for $100 to $600 per piece! (This video is actually safe for work and shows its state-of-the-art facilities and how serious management actually is.)
The company’s sold $60 MILLION of this furniture in its lifetime and the LUVU revenue is ramping up fast!
We’re talking about 110% year-over-year growth last quarter alone! (Read more)
Unfortunately, LUVU kept a pretty low profile in the market until a few weeks ago. The business was rocking, but the chart was just not giving us the traction we knew you want.
What’s the secret sauce that’s got LUVU so revved up? Hate to keep you in suspense, but for you to see the volcanic potential here, you first have to know where this stock has been.
Chart Analysis:
As you can see, LUVU used to move in dry little spurts, but recent action has been a lot looser. Volume in the last two weeks is DOUBLE the entire fourth quarter put together!
MACD has been surging above signal and into positive territory for the last week. The trend is still LUVU’s friend!
STO just crossed above center on Friday, so now there’s confirmation of momentum building in LUVU’s springs.
Accumulation is not only peaking but traders are buying into LUVU at an accelerating rate as news of this company spreads.
All the main moving averages are under LUVU here. The 200-day trend is 7% below yesterday’s close and the 50-day line is even lower.
LUVU Gets the Hollywood Treatment!
But while the “Liberator” pillows were becoming a $60 MILLION cult phenomenon, few traders even knew LUVU existed as a way to have fun at home, much less in the market.
That all changed when LUVU products started getting placement in huge movies like “Meet the Fockers” and “Burn After Reading” – $680 MILLION gross between them — and even local TV news shows. (See for yourself.)
And the headline flow is approaching craze levels. Just yesterday, LUVU unveiled its new “decorator” model for couples who might want to hide their activities from the kids. (Readmore)
Two things come out of this. First, the holidays are one of LUVU’s key sales seasons, so they’re expecting revenue to climb 14% year-over-year as Middle America catches the fever. (Read more)
Second, Wall Street analysts are getting hot and bothered.
Mere hours ago, independent research firm Goldgaber pinned a $1 target on LUVU shares!
That’s a mind-bending 400% premium above where they closed last night. (Read more)
Goldgaber loves LUVU for its “expectation of a price/revenue multiple expansion.” (Read the report here)
In other words, they see massive growth ahead for this company as its products move out of the red light district and onto Amazon, CVS.com, Walgreens and other mass-market retail channels.
Bottom Line: If Goldgaber’s calculations are correct, LUVU’s problem hasn’t been the fundamental “meat” so much as the lack of “motion.”
Whether last night’s news provides that incentive and gives us all a happy ending today remains to be seen.
But whether you take part or not, you know you at least want to watch and see how LUVU’saction develops.
See you in the winners’ circle!
Beacon Equity Group
This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. BeaconEquity.com is a wholly-owned subsidiary of BlueWave Advisors, LLC BlueWave Advisors has been compensated ten thousand dollars from the company (Liberator Inc.) for LUVU advertising and promotion. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision.BWA does not hold a position in the covered company.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
About BeaconEquity.com
BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
Beacon Equity Group Disclaimer
This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
