 in this video we're going to cover a penny stock that's reached the highest revenue levels ever on this channel we like to cover proven penny stocks that have good fundamentals and have the potential for revenue growth and this is another one of these that has grown its revenue i predicted that it would and it has and i think this is only the start for this particular penny stock i'm going to say i'm not a financial advisor i'm a business teacher in my daily life and i'm by no means an expert on the stock market and i've been meaning to make some more videos but of course i've been busy teaching at the moment so do bear that in mind but i will be making some videos here as well so let's go into this this penny stock highest revenue ever let's go into the information all i ask is to leave a like on the video i really do appreciate it i do these in my spare time okay and you know any sort of help on the channel really does help me out okay do appreciate let's go on to it now what we've got is this chief executive officer that has talked about the recent revenue earnings for this penny stock and what they've said is we have ended 2020 with the strongest quarter ever in terms of revenues which grew by 78 percent year over year to 133 million dollars for the full year of 2020 total revenues reached 398 million dollars up 63 percent from 2019 an all-time high in our operating history fuel buyer a bus top line performance our profitability also showed an encouraging trend okay so this is a penny stock that i've talked about before and the ones that i like to talk about our ones that i believe are going to do good in the in its business sense i'm not talking about ones that you know might just get fda approval and and things like that i'm talking about businesses that are making money and the businesses that are making money are the ones that are going to have longevity so you know there's a lot of these penny stocks that you could hold on to and see massive returns still risky but again these are based on business fundamentals these are based on catalysts that are likely to happen you know there is some good for example in terms of the medical stack medical stocks penny stocks there is some good in those but sometimes it's a little bit of a gamble because sometimes it's predicated on whether they get fda approval or not and that's not always guaranteed of course whereas if you can really research your business look into it and understand is this business going to do well in terms of its revenue if you're able to make a guess on that an educator guess on that then you're able to understand that actually there is catalysts within this including the earnings including the revenue and the growth of the company there's catalysts that are likely to happen and as an investor you want to put your money in companies where the catalysts are likely to happen because it's much more safer that way rather than companies that might not the catalysts might not happen there may be a really really small chance of that happening which is a dangerous situation sometimes so sometimes the safer penny stocks are the best ones and I do believe this is one of them growing revenue as well as we say from this particular information that we've got here now the company we're talking about today is called Light in the Box and the ticker symbol for this is LITB now what do they do so they target products that can offer our customers better choices choices and savings such as fast fashion and home garden products we also offer a range of other products in our other general merchandise product category as well as high quality to made measured dresses and wedding gowns so this particular company Light in the Box they do sell a range of products they're an e-commerce store and the last time I checked they've got over 10 million downloads on their app on the google app store okay google play store so this is a company that is getting people to download the app and actually getting people to buy products from them hence the growing revenue and I do think this is a proven business model an e-commerce website that tries to sell goods at a discounted price globally right it's a proven business that has worked okay and they're doing this really well it seems because they're growing their revenue massively and it's working out for them so far so some good information here good proven business that we know has got the potential to succeed in the growing e-commerce industry okay now before we move on to some more information I've got some breaking news also about this penny stop along with some other financial information what I want you to think consider is to subscribe and turn on the notification bell if you haven't already so if you're new to the channel do subscribe if you want to hear about penny stocks that have good quality fundamentals and have information that could actually send the stock price up in terms of catalyst then do subscribe and turn on the notifications of course on the channels we do we do cover sometimes you know the micro penny stocks which sometimes are a bit more riskier even more than the normal penny stocks right but generally speaking I do like to have a good balance between risky penny stocks and those penny stocks which are a more long term safer players and I do believe this is more I would say medium to long term safer player because it's got good business fundamentals so let's go into this further they've also got this information in terms of institutional ownership now what does this mean about full light in the box what does it mean okay so institutional investors commonly compare their earned returns to returns of a commonly followed index so they generally do consider buying larger companies that are including the relevant benchmarks so you know institutional investors tend to not buy as many penny stocks reason for this is that they they're just comparing against the normal indexes and they want just you know that sort of decent levels of return and less risk institutional investors do invest in penny stocks and when they do that shows really good promise for that penny stock that they think that upon their research that it's worth investing in now what does this mean for light in the box though so institutions have a very small stake in light in the box but that indicates the company is on the radar of some funds but it isn't particularly popular with professional investors at the moment this is the catalyst if the company is growing earnings that may indicate that it's just the beginning to catch the attention of these deep pocketed investors we sometimes see a rise of share price when a big few institutions wants to buy a certain stock at the same time the history of earnings and revenue which you can see below and we'll go through some information further on to this but the interesting stuff here is that if it grows its revenue which it is doing if it grows its profits and it grows its overall revenue as a company which it is doing by massive percentages then what we could see is institutional investors paying much more close attention to this penny stock and I think we could see ourselves with some interesting gains on this stock if we have the combination of revenue increases and then increasing increasing institutional ownership as well and investors getting involved professional investors so very interesting stuff and again the proof is in the pudding the revenue is growing for this penny stock that's the facts of the matter right and the downwards on the wrap are growing by millions upon millions the products that they're selling is growing their portfolio I see good business fundamentals for this penny stock has its fluctuations okay so it could drop 10 20 percent but it you know I do believe in the medium to long term this is going to be a good stock I'll get into the price action later another interesting point is that it's been actually been showing up on the google trends and it's had a good upwards sort of trajectory especially within the end of 2019 towards 2020 you're seeing that the mentions on google trends are actually growing for this penny stock so I do like to like to look at this social arbitrage of penny stocks what is the ones that are getting attention in terms of people searching for them and looking to buy products from that website for example and what we're seeing is that the the growth of light in the box it has been growing exponentially especially here look it almost well it hit 100 at one point okay so you can see the growth especially in this area here and that's in line with more people visiting the website visiting the app and in line with the massive growing revenues as well that we're seeing now so you've also got this other information in terms of the financial results so the total revenues increased by 77.7 percent year over year to 132 set 2.7 million from 74.7 million in the same quarter of 2019 revenues generated from product sales where 129.5 million compared with 71.7 million in the same quarter so you've got this growth in revenue that's happening okay which is really good to see over here and you've got the gross profit fourth quarter of 2020 was 59.6 million compared with 30.2 million in the same quarter of 2019 so the gross margin was 44.9 percent which was compared to 40.4 percent in 2019 so the gross profit in the gross margins increasing which is very interesting and good to see and you've got the information here in terms of marketing expenses so they did actually increase their marketing expenses so they put more money into marketing and that's why we're also seeing further revenue increases now this isn't a bad thing this is good because actually what it's showing is is that they're reinvesting their revenue into marketing okay and they're growing this to be a beast of a company they're getting the revenue they're building that up they're putting money into marketing they're getting the revenue they're building it up they're putting in money into marketing and they're scaling this up over the months over the months over the years right and what we could see this is this scaling up of the revenue continues to happen in line with the marketing because it's important for the revenue to continue to grow and not have a massive overspending marketing without the revenue growing of course that'd be bad for the company but if they grow their revenue in line with growing their marketing this is where you see this massive explosive and I hate to be sort of pedantic about but it is explosives explosive year on year revenue growth I mean I've got to be honest I wasn't expecting it to grow this much it's year and year revenue I was expecting it to just be a little bit less than this but I think it's doing incredibly well in terms of it's growing year and year okay so what's the future though what are they looking to do for the future like say this is only the start so you think you know I've missed the book you haven't because it's because of the recent correction it's had a massive dip and it's starting to get to a bargain price in my opinion okay I'm not a financial advisor business outlook for the first quarter of 2020 based on current information available to the company and business seasonality the company expects net revenues to be between 110 million and 125 million which would represent an increase between 114 percent and 143 percent compared to the first quarter of 2020 so they're expecting to grow their revenues even favor by 114 percent that's pretty much double in their revenues and more so 243 percent unbelievable revenue growth for this and of course you know that is going to impact the share price or it justifiably it should you know if the company's making more money the company can be worth more and therefore the share price should be affected by that okay so this massive revenue growth is really important for the company what is the benefits of this company so first of all it's got a proven business model there's nothing there's no there's no you know swings and bells about this penny stock right it's simple there an e-commerce store that provide goods which you can buy on their e-commerce website they've also got an application which you can download and buy goods from that as well very simple it's nothing massively innovative to be fair because there's other businesses doing that you could see that as a downside because where is the unique selling point and this well suppose the point is that they're growing they're actually becoming starting to become an even more prominent person company in the e-commerce industry so there is benefits and drawbacks but overall we know it's a proven business model it's a proven business in its own right okay it's also a growing industry more and more people are shopping online so e-commerce inevitably is growing to grow now you would think well why don't i just invest if that's the case why don't i invest in amazon well the thing is with amazon it's become that big of a company that you know the returns year on year yes you will it's a safe investment you probably see some returns on amazon right but you're not going to see 50 to 80 percent returns i believe in this penny stock we could see some 50 to 80 percent returns very quickly within the next set within the next sort of six to eight months and i do believe on top of that i see this move into about five to seven dollars as a penny stock probably about five dollars i would say okay it's also got growing revenues as we mentioned so i won't mention that point again by the way if you're enjoying the video subscribe let's have a look at the price action three dollars twenty seven three dollars twenty seven now interestingly enough we had the correction okay and it was a 52 week high or five dollars sixty nine and it's come all the way back down to three dollars twenty seven now with a recent information coming out about their year on year revenue growth which is huge we should ideally and logically see this share price moving up based on that now unfortunately it doesn't always work that way this stock market doesn't always work that way so what i would say is this is getting to a bargain price if you can get this at three dollars i think it's a really good price okay for this penny stock i did actually mention this penny stock when it was around this lower two dollars so two dollars fifty range lower two dollars right so it's moved up from when i first actually mentioned this penny stock it was actually way back over here this point here was before it was around december i believe actually yeah around that around that time okay and i did first mention this and i did say look this one's going to be a revenue generating machine and we're going to see earnings reports with massive revenue grow and that's what we're seeing at the moment so i do see this three dollars twenty seven i feel if you're going to hold this in the medium to long term you're going to see some good revenue increases you're going to see get see some good share increases overall okay in the medium to long term okay so i do think you can get it to three dollars i think it's a buying opportunity or low three dollars buying opportunity again it could dip down to this two fifty level again okay depending on how the market conditions are so it could dip down to this area at which point i would load the book at that price i see this as i say as a four to five dollar penny stock easily easily easily moving back up to then i would see it actually moving up to potentially ten dollars within the next one to two years two years possibly two years i would say if they can have this massive year and year revenue growth and that continue that to the future now that's the end of the video for today if you found it interesting if you found it informative if you enjoyed it 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