LQR House (LQR) scored a major milestone last week, securing a listing on the NasdaqGM. While shares have zig-zagged since, the over 40% surge on its listing debut exposed that there is quite a bit of enthusiasm for what this company has to offer. Yes, shares traded lower into Friday. But that’s been a familiar pattern of late, with short-selling investors feasting on newly listed companies with low floats and lower liquidity. However, short-term gains from that strategy can and often do lead to long-term pain, especially when squeezed by companies that are doing more than generating revenues but also changing a sector landscape. LQR checks those boxes.
And investors responded. LQR stock soared to over $7 a share on its opening day before retreating into the close. That action made it one of the most exciting new listings of the summer, and deservedly so. The spirits sector, Anheuser Busch
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aside, has been on fire in recent weeks as many smaller brands jockey for market share in play from the lost leadership position of Bud Light. Remember, moving the needle toward profitability for smaller and emerging brands doesn’t take a lot. That includes LQR, whose mission is to become the digital face of the alcohol space, puts that EPS expectation in its crosshairs. And with only about 10 million shares outstanding, investors caught on the wrong side of this trade could find their short position treading against a formidable bullish stampede.
That’s not an overly optimistic presumption. LQR intends to grow bigger faster by capitalizing on its mastery of digital technology to fuel growth throughout the entire sales channel. That includes trying to make money every step through that process by maximizing efficiencies in supply, sales, and distribution channels.
A Case Supporting Bullish Sentiment
In its case, LQR differences can be advantages, especially those resulting from LQR utilizing the power of digital to create efficient business models that facilitate revenues falling faster to its bottom line. By implementing ways to change the face of the spirits sector, replacing the old and tired with fresh and new, that could happen faster than many think. Those following headlines know that companies maximizing the value inherent to digital technology are growing more quickly than those that don’t.
Of course, there needs to be a method supporting the initiatives. LQR also checks that box by leveraging “digital” in the right way to more efficiently manage supply and sales chain channels in the spirits beverage market. By doing so, LQR is positioned for near and long-term growth, not only in revenues, but they expect to be profitable sooner than later.
The excellent news for investors is that getting to that point is a mission in progress. Unlike many newly listed companies, LQR generates stable sales, is recession-proof, and benefits from all seasonal changes. In other words, there’s never really a slow time for spirit sales. Better yet, for companies like LQR House, who are disruptive instead of one of the herd, any time is the right time to apply a better business model, especially a digital one that can revolutionize how brands operate and how consumers discover them.
Changing The Competitive Landscape
Revolution is a vital part of LQR’s mission. And their ground work completed is doing more than disrupting traditional sales and marketing models; it’s contributing to reshaping the conventional approaches through a reimagined strategy to market and distribute products. That’s made possible by an expanding network and strengthened infrastructure that leans into partnerships, maximizes novel ways to engage consumers, and takes advantage of efficient pathways to build client count and market share.
Moreover, LQR maximizes the proper channels to generate and increase brand exposure through distinctive methodology, providing an appealing introduction to cutting-edge emerging spirits and wines and then bolstered through a vast influencer network. From there, LQR seamlessly connects brands to their sales platform, ensuring and maintaining product visibility and adding to the potential to achieve substantial product and category growth.
There’s plenty of opportunity. Seizing it, LQR has positioned itself ideally to capitalize on and maximize revenue-generating opportunities from a spirits industry that has exploded in size. Much of that growth comes from the surge in smaller “micro” brands that produce high-quality, attractively packaged products that reach targeted demographics. Emerging products and brands are just part of what’s contributing to the resurgence of younger generations drinking harder spirits. A more significant contributor to sector growth is that companies have learned how to get their new products into consumers’ hands. LQR House is one of them.
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