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Paint Your Wagon (XPEL)

Posted on June 14, 2021

We’re going straight for the jugular today, with a downside bet on the folks who coat, paint and spill filmy glazes all over your car, XPEL, Inc. (NASDAQ:XPEL).

There’s not a lot you need to know about these jalopy-stainers.

First up, the fundamentals are anything but convincing, even for a ‘growth’ stock – whatever that might mean in this environment (a security that rises in value too fast to be explained otherwise).

Consider –

  • P/E is 105.88 (a tad frightening),
  • While forward P/E is staked at 58.92 (oh, the horror…)
  • There’s no dividend on offer,
  • And Price to Book is a helium-filled 41.57.

The stock climbed 1156% since striking its Batflu bottom last March, with an outsize portion of the gain coming in just the last month, following a finger-licking earnings report.

Sorry… should have known better.

The company beat expectations handily, scoring $0.25 on analyst projections of just $0.18.

But it’s more in the technical realm that we now see cause for worry.

Below is the daily chart for the last six months.

Pay particular attention to RSI and MACD indicators at the bottom, both of which are now pointing to a rally that’s run out of steam –

Turn to Hashem – He and only He can save you!

With kind regards,

Hugh L. O’Haynew

 

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