Our bullish call on the SPAC SilverBox Engaged Merger Corp (SBEA), which announced a merger with Black Rifle Coffee Company, was one of our best picks of November.
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SBEA skyrocketed to $15.75…. and then it fizzled out to just over $10:
The Bull Case for Black Rifle Coffee Company
At some point, Silverbox is going to turn into Black Rifle Coffee Company, and will trade under a new ticker.
While Wall Street is ignoring Black Rifle Coffee, we see HUGE potential over the long term.
First, let’s talk about what Black Rifle Coffee does.
Black Rifle Coffee describes itself as “a Veteran-founded coffee company serving premium coffee to people who love America.”
And we LOVE that description.
Because it’s DIFFERENT.
Black Rifle is not just another coffee company.
Black Rifle is a brand you can’t ignore.
Yes, many people will be turned off by Black Rifle’s pro America, pro gun, pro military messaging… but that’s the point.
You look at Black Rifle and you either love it or hate it, which is the mark of a remarkable brand.
And it turns out… a lot of people like the Black Rifle mission, which includes heavy support of Veterans’ causes. For example, Black Rifle will donate 530,000+ shares of stock to the company’s charitable foundation.
And, over 50% of Black Rifle’s employees are Veterans… which is MASSIVE, as we’ll explain below.
Here is a slide out of the investor presentation:
Black Coffee had $36 million in sales in 2019, and it expects to hit $430 million in 2023, with gross margins of 43%.
So as of now, Black Rifle is trading at about 4 times expected 2023 sales. That’s a high valuation, but not out of the question – especially since Black Rifle may be lowballing expectations.
Why Veterans Are KEY to Black Rifle’s Success
Earlier, we told you that over 50% of Black RIfle’s employees are Veterans.
This is bigger than you think.
Black Rifle has what many companies are desperate to achieve – a unified company culture where everyone is on the same page.
This isn’t going to be like Google or Facebook, where employees fight over politics at company meetings.
PLUS… what are soldiers good at? Working as a team.
And what makes them different? Sacrificing themselves for the mission.
So we think Black Rifle will be the most well-oiled machine in corporate America.
Is Black Rifle Coffee Company Stock a Buy Now?
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