TPB

Turning Point Brands Inc

Consumer


Presented:08/28/2019
Price:$35.22
Cap:$0.69B
Current Price:$42.57
Cap:$0.75B

Presented

Date08/28/2019
Price$35.22
Market Cap$0.69B
Ent Value$1.20B
P/E Ratio21.58x
Book Value$5.19
Div Yield0.51%
Shares O/S19.66M
Ave Daily Vol223,451
Short Int16.82%

Current

Price$42.57
Market Cap$0.75B
Turning Point Brands, Inc. provides tobacco products. It operates through following segments: Smokeless products, Smoking products and NewGen products. The Smokeless products segment manufactures and markets moist snuff and contracts for and markets chewing tobacco products. The Smoking products segment imports and markets cigarette papers, tubes, finished cigars, NYO cigar tobaccos and cigar wraps and processes, packages and markets pipe tobaccos. The NewGen products segment markets e-cigarettes, e-liquids, vaporizers, and other related products and distributes a wide assortment of vaping products to non-traditional retail outlets via VaporBeast and Vapor Shark. The company was founded by Thomas Helms, Jr. in 1988 and is headquartered in Louisville, KY.

Publicly traded companies mentioned herein: Altria Group Inc (MO), Philip Morris International Inc (PM), Turning Point Brands Inc (TPB), Swedish Match AB (SWMA SS)

Highlights

The presenter is long shares of Turning Point Brands (TPB), a smokeless alternative tobacco company. The stock recently fell from its all-time high of $57/share to $35/share following what the presenter characterized as a mis-managed convertible offering that was designed to pay down debt and raise M&A firepower. He thinks this dislocation presents an attractive opportunity to buy into a company with a strong core business and a variety of new drivers that will create shareholder value. If TPB can execute on new M&A opportunities and growth, the company should be able to get to $100MM in EBITDA next year. Using a mid-teens EBITDA multiple gets the presenter to a price target of $65/share. 

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