Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

Betterware de Mexico Sab de CV / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after meeting with the management of Betterware and JAFRA Mexico and touring JAFRA's manufacturing facility.</li><li>We believe there are multiple top and bottom line upside drivers for the company, and we increasingly view our projections as conservative, as both Betterware and JAFRA have the ability to leverage a relatively fixed infrastructure which can support multiple years of expansion.</li><li>Further, we believe management is highly focused on higher levels of innovation and leveraging their distribution networks to increase their "share of wallet" for both housewares and personal care items.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after meeting with the management of Betterware and JAFRA Mexico and touring JAFRA's manufacturing facility.We believe there are multiple top and bottom line upside drivers for the company, and we increasingly view our projections as conservative, as both Betterware and JAFRA have the ability to leverage a relatively fixed infrastructure which can support multiple years of expansion.Further, we believe management is highly focused on higher levels of innovation and leveraging their distribution networks to increase their "share of wallet" for both housewares and personal care items.

BWMX: Management Meetings Confirm Multiple Upside Drivers; Reiterate Buy

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the June catalog.</li><li>Despite the return of normalized comparisons, as supply chain issues began to normalize last year, June was another solid month for Betterware, as the catalog registered further SKU growth, continued higher levels of newness, and lower discounting.</li><li>Further, these results were achieved despite the company pulling back from prior categories (Better Kids and Pets), making the YoY gains even more impressive.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the June catalog.Despite the return of normalized comparisons, as supply chain issues began to normalize last year, June was another solid month for Betterware, as the catalog registered further SKU growth, continued higher levels of newness, and lower discounting.Further, these results were achieved despite the company pulling back from prior categories (Better Kids and Pets), making the YoY gains even more impressive.

BWMX: Snapping the Catalog: Tough Comps Not an Issue; Reiterate Buy, $22.50 PT

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/best-world-international-ltd" target="_blank" data-smartkarma-citation="entities:4600:1" rel="noopener">Best World International (BEST SP)</a> has disclosed a revised exit offer which has been declared final. The S$2.56 offer is a modest 2.4% premium to the previous S$2.50 offer. </li>
<li>The key conditions are approval for the selective capital reduction (at least 75% of eligible shareholders) and delisting resolution (a majority holding not less than 75% in value).</li>
<li>The revised offer remains underwhelming. However, the headcount test risk is lowering as retail seems resigned to accepting it. At the last close, the gross spread was 2.4%. </li>
</ul>



Best World International (BEST SP) has disclosed a revised exit offer which has been declared final. The S$2.56 offer is a modest 2.4% premium to the previous S$2.50 offer. 
The key conditions are approval for the selective capital reduction (at least 75% of eligible shareholders) and delisting resolution (a majority holding not less than 75% in value).
The revised offer remains underwhelming. However, the headcount test risk is lowering as retail seems resigned to accepting it. At the last close, the gross spread was 2.4%. 


Best World (BEST SP): Best and Final S$2.56 Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a> announced that the share alternative pre-condition was satisfied. However, The share alternative offer is at the offeror’s discretion and with the consent of the financing parties. </li>
<li>The share alternative offer poses a dilemma due to the requirement to satisfy the minimum acceptance condition while not breaching the upper limit of the share alternative offer.</li>
<li>The share alternative offer is a play on higher multiples by relisting the business. At HK$50.00, L’Occitane would trade in line with its median global beauty peers’ multiples.</li>
</ul>



L'Occitane (973 HK) announced that the share alternative pre-condition was satisfied. However, The share alternative offer is at the offeror’s discretion and with the consent of the financing parties. 
The share alternative offer poses a dilemma due to the requirement to satisfy the minimum acceptance condition while not breaching the upper limit of the share alternative offer.
The share alternative offer is a play on higher multiples by relisting the business. At HK$50.00, L’Occitane would trade in line with its median global beauty peers’ multiples.


L’Occitane (973 HK): Dilemma as the Share Alternative Pre-Condition Met

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the May Betterware catalog.</li><li>While the YoY comparisons in SKUs become more difficult, Betterware continues to roll in new items and upgrades to key favorites to remain fresh and vital to their core customer base.</li><li>Further, May saw the first round of the fruits of their recent sponsorship of Mexico's Summer Olympics team and continued expansion of key licensed characters.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the May Betterware catalog.While the YoY comparisons in SKUs become more difficult, Betterware continues to roll in new items and upgrades to key favorites to remain fresh and vital to their core customer base.Further, May saw the first round of the fruits of their recent sponsorship of Mexico's Summer Olympics team and continued expansion of key licensed characters.

BWMX: Snapping the Catalog: Spring Brings Excitement; Reiterate Buy, $22.50 PT

United States

Nu Skin Enterprises, Inc. is a global direct selling company.  The Company distributes premium quality personal care products and nutritional supplements. Nu Skin markets its products in the Americas, Europe, and the Asia Pacific region.  The Company provides marketing and distribution of technology-based products through Big Planet, Inc.

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Nu Skin Enterprises Inc A (NUS US)

BWMX: Management Meetings Confirm Multiple Upside Drivers; Reiterate Buy

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after meeting with the management of Betterware...

Small Cap Consumer Research

BWMX: Snapping the Catalog: Tough Comps Not an Issue; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the June catalog. Despite the...

Small Cap Consumer Research

Best World (BEST SP): Best and Final S$2.56 Offer

The revised offer remains underwhelming. However, the headcount test risk is lowering as retail seems resigned to accepting it. At the last close,...

Arun George

BWMX: Snapping the Catalog: Spring Brings Excitement; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the May Betterware catalog. While...

Small Cap Consumer Research

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Market Cap (USDm)

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BWMX: Management Meetings Confirm Multiple Upside Drivers; Reiterate Buy

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after meeting with the management of Betterware...

Small Cap Consumer Research

BWMX: Snapping the Catalog: Tough Comps Not an Issue; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the June catalog. Despite the...

Small Cap Consumer Research

Best World (BEST SP): Best and Final S$2.56 Offer

The revised offer remains underwhelming. However, the headcount test risk is lowering as retail seems resigned to accepting it. At the last close,...

Arun George

L’Occitane (973 HK): Dilemma as the Share Alternative Pre-Condition Met

While a positive, the share alternative offer needs to balance the requirement to satisfy the minimum acceptance condition while not breaching the...

Arun George

BWMX: Snapping the Catalog: Spring Brings Excitement; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the May Betterware catalog. While...

Small Cap Consumer Research