News Details – Smallcapnetwork
Sack Lunch Productions (SAKL) is Going Global, Staffing 360 Solutions (STAF) Fans its Flames
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February 2, 2024

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PDT

Welcome back to the new trading week, one and all. We've got a fair amount of stuff to get through today, so let's just dig in, beginning with today's news from Sack Lunch Productions (SAKL). You may recall when we first introduced SAKL to you on Tuesday that one of its big growth tenets was its opportunity to expand internationally. With those doors opening up, the number of branded events the company would put on this year was projected to grow from 100 last year to 250 (or more) this year. So, it's fitting - and telling - how just this morning Sack Lunch Productions announced it has signed a deal with a company in Japan that would give that organization rights to host up to three Lantern Fests over the course of the next five years. With the first seed planted there, it will be much easier to spread its wings in that country. Anyway, we didn't talk about it at great length last week, but the news provides the perfect segue into the next phase of the discussion about SAKL... by franchising or licensing the event's name, that fee revenue is 100% pure profit, and requires little to no actual effort or expense from Sack Lunch Productions. This leaves it time to focus on geographies where it can be effective at setting up and promoting events and make even more money, which is primarily here in the United States. The point is, Sack Lunch Productions understands the balance between doing what you can do profitably, and outsourcing revenue growth when it makes more sense to let someone else shoulder the burden. For this very reason we have no doubt the company is not only going to reach its revenue target of $18 million this year, but also reach its net income target of $3.5 million -- a 1000% improvement on 2015's bottom line. In other news for our Featured Stocks, Staffing 360 Solutions (STAF) will be making a presentation at the 6th annual LD Micro Invitational conference on Wednesday. If you're going to be in the Los Angeles are on the 8th, it might be worth checking out. The presentation is scheduled for 11:30 am PST, though some of the leadership team will be around before and after. This is the third conference STAF will be attending in less than a week, and it's no small matter. You may recall last week how Staffing 360 Solutions surged following its attendance at the SeeThru Equity Conference. That's what these events can do - get a lot of the right investors excited. Though that pop hasn't followed through yet, the pivot has been put in place for STAF shares. Between today's presentation at the Marcum MicroCap Conference and Wednesday's presentation, a whole new batch of would-be buyers is getting to know the company. As for the market's foreseeable future, I think it was just a few days ago we made a point of saying it was ultimately in the Russell 2000 Small Cap Index's hands. That hasn't changed. In fact, John Monroe over at the Elite Opportunity newsletter touched on the matter again today. I can't give you his entire perspective - it wouldn't be fair to EO members. I can give the you the mostly-educational aspect of his comments in the matter today, and you should be able to glean something from them: "I've included the monthly chart of the Russell 2000 below. Following a very long-term 3/8th's retracement level, which the above mentioned indices have yet to achieve, the entire small cap space has been leading the recent rally in stealth like fashion. And, if this continues, we're likely looking at a move on the Russell to at least above that December high I've pointed to here before it could be in a position to run out of steam. If that happens, we're likely looking at new highs on the rest of the major indices. However, it will be at that point we'll really have to question just how much higher stocks can go before they could be in a position for a big reversal. The takeaway here is twofold. First, based on what we've seen since the Summer of last year, this is not what a long-term developing bear market looks like. Normally, before any sort major bear market starts to rear its ugly head, stocks make one big move to the upside, and that move is usually associated with a new high. Secondly, more often than not, that new high is usually preceded by a tremendous amount of volatility for several months. Well, we've definitely gotten the latter, but we've yet to achieve that new high to go along with it. So, if you've been riding this bull market for quite some time, I think you're still in good shape. You're just going to have to decide if you want to start slowly unwinding your exposure in your more speculative names if and when the markets achieve new highs. If I had to help someone make that decision, one decent way to play what potentially lies ahead would be to ... ....One thing we can always count on is for things to change, so until the NASDAQ achieves roughly..." You get the gist. This isn't what the beginning of a bear market looks like (at least not yet). What you didn't get from John's comments above, of course, was a plan of action. He's also been telling Elite Opportunity members what they need to be doing about the way the market's been behaving. If you'd like to take his analysis to the next level and know exactly how he's trading it, you won't have any regrets in becoming a member of the EO newsletter. Of the four premium newsletters we publish, it's the one the most pros use. Everyone have a great evening. We'll talk tomorrow.